The herald., 1898-10-09

frame of mind on the part of traders. The
opening tendency was downward, anected
by q break of point In Brooklyn transit
and continued pressure in Northern ga,
citic. The foreign markets were unsettled
by the political outlook In France, tignt
money in Berlin, and the public agitation
in Spain for the payment or interest on
government bonds In pesetas Instead OF
francs. This had some influence on the
opening here. although Americans hau
New York. Strength in Tobacco, which rose
IN per cent. Supplemented by support IN
Brooklyn Transit, Peoples Gas anu Man
checked the decline. There was rally In
Northern Pacific which drove the shorts
TO cover and which was accompanied by
rumor that conflicting Views OF the in1
teresis DOMINATING the party had been
adjusted. The professional traders then
took the long side Of the market tor turn
ana there was general covering OF shot,s.
The appearance OF the bankststementa add
I'd TO Inc bulIish feeling, as it was fully az
favorable as could be expected: Although
the reserve requirements had been raised
its, the increase OF Il, SIX, lO0 in cash lef; the
surplus reserve $3,4i1, 4oo higher. The cx-
pansion of loans. thong h less than mil
lion dollars, indicates the turn in the tide
crease In that Item since September o.
The loan contraction from that date up
to last saturdays return was $So.M ny.
Even for la week, It will be remembered,
the gain in cash reserve was only ACCOM-
pllshed by loan contraction of $6, 5S8, $40
This week the strerg;he OF the re.
credit TO The extent of $sU7 ,SG. 1t is not i'm
probable that the nearly developed invest
ment in long sterling exchange tor the pur-
pose of lending credits abroad figures An
The item. Expectations that the downward
turn in prices wouid ,,ome 10 an end this
week In the stock market were dissipated,
though there were many indications or
returning confidence in the underlying
strength Of those conditions and the value
Of securities.
Most of the embarrassments which have
been cited TO explain the failure OF prices
10 rise have been removed. Money Is work.
ing steadily to an easier basis and me pro-
cess OF loan contraction and consequent
forced liquidation of securities has come
to an end. The government has collected
practically all OF the SzC0,0JO.VJJ bond sub
scrptlon and has commenced dts disburse-
ment BY the payment Of obligations on ac-
Imports Of gold to the amount Of less
than ~ 900 have brought adequate re-,
lief and have ceased, whdle the continued
accumulation OF credits abroad Is evident
~ being left there a; interest, as reflected
in the investment in "long sterling in The
increase. Apprehe n sdons that the holding
back of winter wheat for higher prices
would result in decreased earnings for the
railroads as compared with last years high
level have been dissipaied by the large
earnings shown in the traffic statements
of St. Paul, Northern Pacific and other
important grain carrying roads. showing
the large growth lin general business I'd
spite Of the decreased grain movement.
The large and persistent foreign demand
for breadstuIfs and the advancing prices,
with the markets free from large specula-
tive manipulation, give increased ground
for confidence in profitable disposition
of the country's crop. Blu; in spite Of The
numerous favorable factors in the situa-
ton, prices of stocks have failed to ad-
vance materially. One reason has been
the unsettling influence of the violent nuc-
tuatons and feverish activity in the great
Industrial speclalties. Tobac suffered
from the completion of speculative lqui-
dation, dropping to 49, with a subsequent
rally OF over ten points. Sugar has been
affected by the opening Of the war In the
trade and there were breaks in other in
dustrials and IS violent advances a some
points, notably Metropolitan and Brooklyn
Transit. The most potent. influence in
checking the advance in the market was
the weakness of Northern Pacific common
which was offered in enormous volume, in
spite OF a large absorption sold off to 3g1s.
The rumors Of differences bGtween the two
largest interests in the property, if true,
would involve. such grave consequences in
the whole railroad world, and especially
weakness Of the stock had strong SYM
pathetic influence on the whole list.
The bond market has shown improve
mert during the week. especially among
the speculative bonds. Wisconsin Central
frsts advancing IN extreme of six points
United States old fours, regis tered, adj
vanced ". the seconds ", the fives ", and
the new fours, coupon, " per cent in the
bid price.