The herald., 1897-08-15
What Was Done Yesterday on Wall
Street

Iherent strength of the market for stocks,
strong fresh buying impulse invited by
the lower level prices being present. This
impulse soon turned the tide of prices to
an upward course, once more wiping out
the sharp early losses and establishing net
gains for the whole list. The early de-
cline extended to from " to point on many
prominent stocks, and the subsequent rise
established net gains of l to points in
many stocks. The grangers were fore
most in the activity, and there was prob
ably an intimate connection between their
movement and the early weakness in
wheat and the subsequent rally in nat
market. A further decline of II in the
posted rates for long sterling exchange
was a Strengthening influence. as was the
| favorable weekly bank statement. The
excess in the increase of leans over the
| increase in deposits and the consequent
decrease in the surplus reserve of 50, 49,
| 400 is an encouraging indication of the in
creasing demand for money and expansion
of business. All loans are at this time of
unprecedented volume, the same is true
of the deposits and the total reserve held,
and decrease in the surplus is looked for
ward to in the money market to establish
a better tone there. 1t can consequently
be said that the lower range of prices in
London this morning had an influence in
depressing early prices here, but ii was
fact that a good deal of the selling in Lon
| don was on orders from this side and prob
ably designed for manpulative effect in
continuing the New York decline of yes
| terday. The industrial stocks again took
quite a prominent part there. The Sugar
| advanced IL after an early decline, and
Tobacco, after a loss of "a, rallied 2k.
The early decline was nearly a point in
| the grangers and Northern Pacific pre-
| ferred. All of these declines were more
than recovered, sharp net gains being es-
! tablshed.
The week in Wall street has been marked
by an unabated volume of trading on the
stock exchange. where the total sales of
all stocks on two days exceed that of any
previous day of the present movement.
| The record for a days trading in bonds
was also placed at new high point. Sales
of stocks for the week reached total of
$500 412 shares, and the par value of the
bonds dealt in was 500, S25. 900. The course
| of prices was not so steadily upward as
last week, two sharp reactions occurring,
one beginning Monday afternoon and con-
tinuing through a part of Tuesday. and
| the second showing itself late on Thursday
and continuing through the early part of
| Fridays trading. The second reaction
| stopped after the outbreak on Thursday of
a speculative movement in a lot of oh
| scure and low priced stocks, some of them
notoriously without any equity whatever
in any property. The grade of intelligence
which was being applied to speculation
was indicated by a widely diffused argu-
ment for selling on Friday because it was
| Friday, and at the same time the 18th of
the month. An interesting development of
| the week was the fact that foreign in
vestors are really buying largely of Amer-
can securities. at the same time as foreign
| holders have been selling largely. The SELL
| ing has been in the New York market. Ow-
ing to the determinedly pessimistic atti-
tude adopted by English newspapers to-
wards American securities, the London
price has been almost constantly below the
| New York price. The course of the various
international money exchanges shows in
creasing reasons why English financial
| authorities have sought to discourage the
buying of American securities. Foreign
, bankers are now substantially agreed that
the balance of credits to be settled by gold
imports to this country will be very large.
The offerings of grain and cotton mills in
the New York exchange market have
caused a constant fall in both sterling and
continental exchange, more particularly
the latter. The fall in sterling exchange
has. in fact received a temporary check
by measures adopted by the London money
market to divert our demand for gold
from that market to other centers, Just
as the special demand in London for gold
from Russia, Austria and Japan has been
in part diverted to this country during
the last few months. The open market
discount rate in London has been raised
during the week from below 1 per cent to
1es per cent, and it is generally believed
that the Bank of England will advance its
minimum discount rate to above per cent
next week. Coincident with the rise in
| the London discount rate, there has been
a sharp rise in the rate of Paris exchange
on London and Berlin exchange on Lon
don. Meantime the New York rate of ex-
Ichange on Berlin, and especially on Paris,
is steadily falling. The inference is that
British capitalists are calling home capital
placed in France and Germany Foreign
bankers in New York believe that the con-
sequence will be that the first gold imports
will come from France, and that they are
likely to come in short time. They also
believe that London will have to ship
gold to New York later. The amount,
OF course. depends upon the buying of
American securities by the English pub
lie. In consequence of the reactions in the
market net changes on the weeks prices
of stocks are not wide, the gains extend
ing to points in comparatively few of the
leading stocks. Transactions in bonds
during the week accurately reflected the
views of investors regarding the financial
ana commercial outlook. Values of many
securities appreciated notably and the
dealings were attended with more anima-
tion and breadth of trading than has been
evident for years. Long dormant issues
came into prominence and issues of lead
ing reorganized roads We're in especial
favor. Purchases for continental account
| embraced round amounts of the gilt-edged
and speculative mortgages The active
issues absorbed the great bulk of opera
tions and general gals were registered
The aggregate sales were $50, ,S45, ,OOO
l