Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1899-09-18

tackled, Peoples Gas dropping nearly 4,
Rock Island ~, and Federal Steel liz.
Sugar fell an extreme AS and Tobacco
| 3s4. Losses elsewhere in the special
| ties extended between and 8 points in
numerous cases. ST. Paul suffered from
continued liquidation even before the
| late break, and after the bank state
| ment appeared it dropped an extreme
~ to 128. Many railroad stocks fell
point or over. The violent declines
| invited the taking of some quick profits
! by the bears, which caused feverish
rallies. In Metropolitan the rally reach
ed over 3 points But the tone of the
speculation at the closing was complete
ly demoralized and prices In many
cases were still being offered down rap
idly in the frantic efforts of holders TO
unload The losses in cash by the
banks for the week were over $4,000
600 less than had been foreshadowed
by the known movements, but On the
ether hand a contraction in loans had
been expected to reach as high as S2o,-
100000 according to some estimates.
AS the return showed a eeduction OF
only $7S54,400 in loans, the net result
brought the surplus reserves down to
about a quarter of million dollars OF
the legal requirement..
Stocks held on margin and with bor-
rowed money have been forced TO sale
in large volume during the week with
resulting inroads upon market prices,
reaching a considerable figure in some
cases. Last Saturdays bank statement
showing reserves of a number OF the
clearing house institutions already be-
low their legal limit, made it certain
that there would be loan contraction
and the bears were eager to anticipate
the selling which was in prospect. Ratea
for call loans we're marked up on Mon
day and Tuesday by reason of the eager
bidding of would-be borrowers, who !
were seeking to shift loans which had
been called. The volume of liquidation
indicated clearly enough that many
werea unable to get accommodations
even at the higher level. The bears
sold SO industriously that their demand
to cover short contracts worked sharp
rally on Wednesday, when the banks
ceased to call in loans and the pressure
of forced liquidation was relaxed. But
when the demand from the shorts was
satisfied the market fell back again.
The reactionary tendency was empha-
sized by the refusal of the st. Paul di-
rectors to extend the disbursement of
the large surplus earnings of the year
beyond the regular dividend rate. The
decision was calculated to have the
more effect on the railroad stocks, since
many stocks have been lifted on specu-
lative buying based on expectation of
increased dividends. Few of these
stocks can show as large surplus OF
current earnings as st. Paul and many
are in far more urgent need of expen-
ditures on structure and equipment in
order to increase the operating efic
iency. The annual report of nearly
every important railroad that comes TO
hand contains the same story of dimin-
ishing rates for transportation.
Ton-mile revenue was never so low
before and is still declining and the
further reductions in ton-mile cost of
operation thus made necessary is only
to be achieved by enormous OUTLAWS of
capital for improving roadbeds and
tracks, equipment and structures, cut
ting down of grades as to make posi-
BILE the carrying of heavier trainloads.
The relaxation of the money stringency
after the banks had reduced their liza
bilities on account of loans led to an
optimistic mid-week view of the money
outlook, which, however, was not long
maintained. A somewhat exaggerated
effect was produced on sentiment by
the decision of the treasury department
to anticipate the payment of October
first interest on government bonds.
Last years experience in similar per-
iod of stock market need of money
demonstrated that holders of govern
ment bonds were not inclined to avail
themselves of the offered privilege.
The relief, at best, would be small and
is not Immediately available. With
continued demand for cash in sight,
both from the treasury and from inter
ior money centres, no source of replen-
ishment is observable. Bankers, in
fact, express themselves as well con-
tent with the existing rate for money
and are not disposed to seek means for
the relief of speculative borrowers.
They hold the view that a check or
undue speculation and wedding out of
| weak speculative accounts makes fol-
the safety of the financial fabric. The
! causes of the firmness of sterling ex-
change with money rates in New York
far above the London level and sup
posed credit balance in our favor of
many millions, does not find very ade-
quate explanation. There is said 20
have been large receipts from abroad
! of American securities, but selling from
| that source has not been in evidence
through the regular agencies Foreign
houses in New York have lent money
here during the week. The purpose
may be to ease the money rate and so
defer the pressure on London for gold
until the Transvaal crisis has resolved
! itself in some way. The movement Ct
cotton is backward and short sellers Of
| sterling against expected cotton bills
have kept up the exchange rate with a
| demand to cover. These causes can
operate only temporarily to keep up the
exchange rate. But the present sur
plus money for stock market operations
| is not in sight.
| Bonds have moved in sympathy with
! stocks but not as widely. United States
IS advanced Il in the bid price.
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