The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-08-27

THURSDAY, Aug. 20. J
The London market for American securities
was unexpectedly strong this morning and
foreign arbitrage houses were moderate buyers
Of stocks. These circumstances. together with
the execution of commission orders that now
come to hand in every mornings mail, were not
without effect upon traders who are still playing
for a reaction in prices, In consequence the
market was strong during the first hour or so.
and for a number OF stocks the highest
prices attained in the present movement were
recorded. The speculation then became quiet,
and. as usual when that condition exists, the
professional element renewed it's attacks upon
values and brought about a moderate reaction.
In the last hour q fresh-buying movement set in
that carried the majority Of the list above
the final figures Of yesterday. Tho feature of
the market, and it was q significant one, was
the extent of the improvement on light trans
actions.
1t is becoming palmer every day that the
present and prospective earnings Of the rail
roads arc diminishing the volume Of securities
for sale and also increasing the demand for even
mediocre issues. A largo amount Of money 10
going into securities. not because the buyers
expect returns in the shape of dividends or in.
terest, but because they believe that there will
be an appreciation In prices that will give them
q greater return upon tho capital employed
in tho operation than would be secured II
the money wero invested in hiRh-class securt.
ties. Regarding this diversion OF funds from
strictly Investment Issues to those Of q moro
speculative character. 1t is interesting to recall
tho fact that tho remarkable advance in prices
in 1870 was to a considerable extent due to the
reluctance Of investors to accept the lower rates
of interest which wero accumulated by the re-
funding of the Government debt at 4 Y cent. The
present extensive refunding of railway obliga-
tons at u lower rate Of interest than the Gov
eminent was able to obtain eighteen years ago
marks further progress toward lower rates Of In
terest tho world over that is logically having its
effect upon the market for securities OF all kinds.
The dealings on the Stock Exchange were con-
siderabiy smaller than those of yesterday, yet
practically all Of the net losses recorded last
night were recovered. The heaviest dealings
were in Chesapeake and Ohio. 1t closed at the
top price. which was y y cent. higher than that
of yesterday. Other stocks that showed excep-
tional strength were Rock Island. Sugar
Refining, Missouri Pacific, New York
Central, Denver and Rio Grande pre-
ferred, Atchison preferred, and Laclede
Gas. Tho news consisted almost entirely of
railway traffic returns for the third week In the
current month. which invariably show a de-
cided improvement as compared with the cor.
responding period of last year. AS to future
returns. 1t may be noted that the railroads are
already beginning to enjoy an increase In their
west-bound business. which is certain to con.
tinue as staple crops are marketed. The closing
Of the stock market was in the main strong.
Final sales compare with those OF yesterday
a. follows: