The herald., 1897-10-03
ON 'CHANGE
What Was Done Yesterday on Wall
Street

NEW YORK, Oct. 2-The marked
strength which developed in the late trad
ing yesterday was resumed this morning
In full force, and continued with only mo-
mentary pauses from the opening to the
closing of the short session. The buying
was eager, and the covering of short con-
tracts put out during the two weeks re-
action in the market appears to be ur-
gent There was every indication that
the reaction had run its course, and the
agents employed by the leaders of the
former bull campaign were buying on a
large scale. The stocks that have shown
the sharpest declines recently were the
foremost In the recovery. Prices of Amer
leans were advanced in London before the
opening hour and arbitrage brokers bought
for London accounts The stocks that were
favorites in the London buying were those
that have recently suffered most severely
from liquidation of foreign holders. re-
f1ecting a marked change in foreign SEN
timent. The various trade reviews pub
lished this morning all reported continued
Improvement in trade and industry, and
the statements of railroad earnings showed
an increase, contributing to the desire to
buy. An additional fall in the rate of ster
ling exchange of u cent for demand bills
to 4S41a. made it evident that additional
gold imports cannot be long delayed, and
probably helped the market. though gold
that some of the banks are settling their
daily balances at the clearing house in
that metal. The weekly statement of the
clearing house banks was also interpreted
faVorably. The statement clearly reflect
ed the pains the banks have been at to
prevent any further heavy shrinkage in
their surplus reserves. The Withdrawals
or deposits of $6002, 800 is partially offset
by contraction in loans of 1892 OO0 maxi
ing total contraction for two weeks of
Sh32oSoo. The Withdrawals of deposits
mas an additional reflection in the de-
crease of legal tenders of $2442 800. which
was OFFSET by net increase of $495, 500 in
specie, so that the actual decrease in cash
was only about $2,0OOOO0. The more profit
able rates for money have induced an in
crease IN circulation of 1921 200.
Iodays net gains in prices of stocks ran
from 10 per cent, the advance being
in full tide when the market closed. The
stock market has been highly technical and
professional IN Its character all the week
ana the reaction which was the feature
OF the week before continued up to Friday.
The bears have been masters of the situ.
alton, and there has been no aggressive
effort In opposition to the bears success
full attempt to bear down prices until to-
day.
Prices have declined simply because most
people wanted to sell rather than buy.
VI SSiiSio NciC liolc uHAlOuS LNdn DuYerS,
No favorable incident seemed to check
the decline. August statements all showed
enormous increases in net earnings. The
resignation of the Conservative Spanish
ministers and the likelihood of a Liberal
succession was accepted as tending to
ameliorate the relations between Spain
and the United States concerning Cuba
But the market sold off sharply on the
announcement of these events. Today's
sharp advances have gone far to reduce
the net declines for the week, and in some
cases have wiped them out entirely The
whole character of the speculation showed
marked change, the trading on the ad-
vance being animated and shorts cover
ing heavily. The week has shown SUBJ
sidence of the fear of money stringency,
Notwithstanding a sudden rise in the call
rate. This was clearly understood to be
due to temporary demand for the necessi-
ties OF the first of October settlements.
Bank clearings of all the cities in the
United States show a decrease from last
week OF over per cent. The market for
sterling exchange has steadily declined
since Monday. and gold imports are be-
lieved to be again imminent. The weak
ness of exchange is due to offerings of cot
ton bills. In estimating the probable di-
mensions of the gold imports the low price
for cotton must be considered, which. com
pared with last years prices. will make
a difference of many millions Of dollars in
the balance due from abroad in cotton
exports.
The general importations Of merchan-