New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-06-17
BONDS.
THE DAYS OPERATIONS IN STOCKS.

..,,.,+,, ,n ,.es+erday's securities market was
.onened in great part 70 leading speculative
1ssues with transactions representing litte save
professional trading. Advancing prices on
email volume Of business reflected the demand
from the short Interest to repurchase stocks SOLO
IN the last few days and perhaps appreciation
nv bear traders that present conditions are not
5avora BILE to prolonged operations against values
xvben traders consider the oversubscriptions
already assured 20 the new Government loan 'he
sn,endid foreign trade statement for May the
satisfactory arrangement for the Letter wheat
i,ouidation the foreign buying in this market
and the possibility Of stimulating war news at
erv minute they doubtless realize that an ex-
.tensive short interest in the current speculation
occupies an extremely precarious position some
hears who are shrewder than others took their
nrofts on Wednesday and marked up prices
..s.erdav 10 the disadvantage Of uncovered
shorts.
As soon as the demand from the shorts was
satisffed the market relapsed into dulness Out
eide buving was limited TO the operations or
few paople who believed that the reaction had
-,,n IFS course. but their purchases were small
and without particular influence upon values
Shorts. however. had TO pay higher prices to
recover stocks previously sold owing to the
demand tust mentioned and to moderate pur-
Aning. American Tobacco. Union Pacific pre-
<erred and Burlington the covering demand was
heavy while IN Baltimore and Ohio Cleveland
Cincinnati Chicago and st. Louis and Chesa-
peake and Ohio especial strength was Que 10 d
fairly heavy demand induced by reports OF
possible consolidation Of the three properties
Final prices were at slight reactions from the
best Of the day. but well above Wednesdays
last quotations. Government bonds were again
higher. and Street sentiment was cheerful over
the manner in which the public responded to
the new Government loan. AS the existing Gov
eminent bonds are selling at high premiums the
advantage of buying a 3 per cent Government
bond AT par is appealing strongly to all classes
Of investors.
heavy demand for 8 per cent war loan
reflects conditions involving prosperity In In
dustriaI and financial circles and confidence in
the credit Of the Nation. The rush or sub
ecriptions for the rev bonds shows that the loan
will he many times oversubscrhed, and pend
inc the ellotments considerable amount Of
money may be tied up in the expectation OF
being used FOR bond payments. The effect upon
money rates however. is not expected TO be I'M
portant. When the bonds are distributed on
JnIy IA. capital held in reserve by unaccepted
htds will naturally seek a market. and in con-
nection with the heavy payments TO be
met IN July and Government interest amount
ing 10 inward Of 100000, should insure ex-
treme ease in the money market throughout the
sunmer The drain upon the Treasury for war
expenditures has reduced the Treasury balance
70 S1S6645194. butt with the increased revenue
nom war taxes and sales OF bonds, the extraor-
binary payments required in the carrying on
Of hostilities will be readily met and easily
handled without imparing the Treasury gold
reserve or materially weakening the actual cash
balance. The supply Of gold in the United States
Is larger than ever before in the history OF the
country and the increased use Of the metal In
ordinary circulation has caused the suggestion
that the Treasury Department resume the issue
Of gold certificates.