The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-08-29

SATURDAY, Aug. %.
Tho action OF the stock market this week is
strong circumstantial evidence that the reac-
ton in prices following tho sharp advance
of two weeks ago has run its course.
The quiet but effective absorption Of securi-
ties sold for both accounts has undoubtedly
strengthened the convictions Of those who be-
lieve in higher prices. based upon unusual
favorable developments. and also weakened the
confidence of operators for short account in the
correctness of their views. Domestic operations
in securities. made In expectation OF lower
prices, have been supplemented by extensive
sales for European account. Present indica-
tions are that European dealers in American
securities are beginning to realize that they
have made q mistake In combating the
steady improvement In business in this country,
which has been reflected 10 an extent In
tho advance in prices on the Stock Ex-
change. Tho various influences now shaping
tho markets OF tho world are so patent
that 1t 10 surprising that any intelligent
person fails to perceive them. The situation. Of
course. 10 not an ideal ono. oven In this coun-
try. though 1t enjoys an unusual advantage dur
ing tho present crop year. In absolutely
perfect condition OF financial and COM
mercial affairs will probably not be
attained this side of tho millennium.
In tho meantime there will be. as at present t..
plenty of critics. some OF them captious and
others absolutely sincere. who will risk and lose
their money In ventures based upon minor UNI
favorable considerations.
Tho recent sales of securities by Europe. par
ticularly by English holders and operators.
have resulted from ignorance In the first case
and design In the other. Attention has repeat
eddy been called In this column to the fact that
European bankers are exerting themselves to
fha nfnnat IN induca THAR cnuAtifuenta IN helm
minimize q trade balance In favor OF tho
United States by selling their holdings
of American securities In pursuance OF this
policy foreign operators have apparently sold
for short account considerably more than 1OO,'
600 shares Of various stocks. The persistent
selling by London has Influenced local
sales for short account. Those who have
made them have ignored the fact that. even
during the unpropitious years following the
Barring panic. the United States steadily abb
sorbed hundreds OF millions Of Its CONNER
cial and corporate obligations. and that
since tho last Presidential election. when
efforts to debase the currency were de-
feated by popular vote. this country
has shown its absolute independence OF foreign
money markets. 30 far as the relations be-
tween borrower and lender are concerned.
This has resulted from tho steady increase
In wealth here. and now that tho purchasing
power Of the entire country is increasing
rapidly. owing to the production OF at least
average crops for which there is AN unusual
foreign demand at high prices, it seems rldicu'
lous TO attach any importance whatever to the
attempts OF European bankers to manipulate
the stock market for effect upon foreign ex'
changes.
Spectators in cereals. particularly in wheat.
have apparently abandoned their efforts TO ad'
vance the prices Of wheat and corn by c~irculat'
Ing alarming reports regarding maturing