The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-09-26

Eeactionists In Control of the Stock Mar
ket, That Element Being Left by the
Opposite to Work Out Their Own De-
vices, Which They socceed Pretty Well
in ong-CIosing Prices Are In Many
Cases at the Days Lowest-Esuk State
ment as an Indicator of south and West
Business-Thc Weeks Review
New York, Sept. 25.-There was no
large and aggressive element in the
stock market today and the trading was
largely in the hands Of the reactionists
They were persistent in seeking for the
weakest spots in the market in their en-
deavor to uncover stop loss orders. This
they succeeded in doing in number Of
stocks and accelerated the decline. There
were few feeble rallies during the day,
but the sagging tendency was for the
most part uninterrupted. Dealings were
not on a large scale nor were they as
widely distributed as of late. Many
stocks showed no movement az ali dur
Ing the day. There was nothing inter-
esting in the news TO cause a recession
in the prices and the heaviness Of the
market has not other explanation than
the withdrawal of support and the con-
tinuance Of some offerings to realize
profits. The bears did some short sell
Ing in their effort TO uncover stop loss
orders, but there was no aggressive gem
eral selling manifest, and much caution
was apparent in putting out short sales.
Trading halted after II o'clock and wait
ed for the bank statement. The response
was not imminent when the statement
appeared showing some hesitancy about
constituting it's character. An unfavora-
bic view was finally adopted and prices
drifted downward again, closing in
many cases a. the loves; of the day In
some stocks, however. there was a final
rally OF a fraction. Sugar covered a
range Of over two points but closed IN
changed. Omaha lost two points, Con-
sohdated Gas , 1-2 per cent, and many
other active shares from one to two
points.
Interest today centered in the weekly
statement Of the clearing house banks.
The condition OF the money market after
the weeks development was hooked up
on as the salient factor in determining
the course OF the speculation in the i'm
mediate future. The most notable feat
IRE Of the statement is the decrease
shown in deposits, Of 10602, 800. The
actual loss in cash was 36,54s.30O all in
legal tenders. as the amount OF specie
shows small net increase. The heavy
decrease in deposits probably represents
me demand from interior banks, which
have had funds on deposit in New York
banks for many months. The proper
tiOnS Of the Withdrawals accounts for
the sudden calling OF loans during the
week. which was attributed in specula-
tive circles TO a concerted effort 10 ma
nlpulate the money market. The con-
traction in loans is stated at $2,z2S. 800
and this contraction served 10 reduce
by 80 much the loss TO the banks in
actual cash and 10 save a correspond
ing additional decrease in the surplus
reserve. The fact that the decrease in
the surplus reserve is not as large as ex-
pected is due to this fact and also 10 the
fact that thelegal reserve is brought
down s2.650,625 by the enormous with
drawal OF deposits.
Tie contraction Of loans in face Of the
active speculative demand prevalent,
amply accounts for the stiffening Of
money rates and for the falling off in
specula tive activity on the stock eX-
change. II demonstrates that the sud
Sen rise in money raj les on Monday was
not manipulative movement in the
bear interest, but was a natural refiec-
IF al ? @s-- - n
speedy further fall in exchange ana 10
large additional imports OF gold. unless
the money rate in London and Pari.
rises - point where il would be more
profitable fo- creditors here 10 leave
their funds there. II explains. also the
action of two Of the city banks, not us
ually dealers in exchange. in egaging
gold for import early in the week in face
O: the almost unanimous opinion OF the
foreign exchange bankers that the op-
Grafton would yield no profit The first
engagement Of gold was made by the
largest OF the city banks and PROBABLY
was based on its knowledge OF the con-
titions operating upon the money sup
ply The calling and consequent shift
ing OF loans at the higher rate Of inter
est has been the predominant influence
In the stock market which has been re-
dictionary all week. with the exception
OF one day. The reaction developed late
on Monday coincidentally with the rise
in the money rate and after stocks had
touched the highest price Of the year
earlier in the day.
The reports as TO the nature Of the
representations made 10 Spain on be-
half Of the United States in regard TO
Cuba by General Woodford, the United
States minister, gave keen instruments
10 the reactionists. ana they used il. 20
gether With the spread Of yellow fever.
TO advantage on Tuesday. on that day
liquidation resulted in sales ot nearly a
million shares Of stocks. The only re-