New-York tribune., 1899-12-19
BONDS
THE DAYS OPERATIONS IN STOCKS.

THE DAY - OIEKAllONS IN S1O'Ns.
The stock market was demoralized. but there
was no panic in Wall Street scare headlines
10 the contrary Notwithstanding There was,
however. n panic among many holders OF stocks
who were forced to suffer severe losses through
the enormous outpour Of industrial and rail-
road securities that came on the market. through
unnecessary fear and hysteria and through stock
and money market manipulation. Fortunately
the heavy drop In quotations did not represent
a shrinkage in the actual worth OF securities
panic in Wall Street implies bankruptcy in
financial circles business prostraton. low re-
serves I'm the Treasury. railroad receiverships
the fall NJ rich individual capitalists and power
ful corporations panic Of hystera has de-
veoped but not n financial or commercial panic.
The failures Yesterday were directly due TO
stock speculation. They are too Insignificant 10
deserve extended consideration although they
furnish an opportunity for moralizing on the
folly of institutions that attempt 20 finance
worthless securities. and Of brokerage houses
that permit small margins and allow customers
to speculate beyond the limits OF safety.
The stock and money markets were actively
manipulated. Stocks recorded excessive losses.
and call money rates advanced TO 1s6 per cent.
There was absolutely nothing in the business
situation that warranted either movement but
fear and manipulation ovcrshadowed all other
conslderations and in consequence stock quota
tons declined as n securities were not worth
the paper on which they are written. II may
have been the elimination OF the downward
movement To those not Interested in stocks
the movement seemed like the final crash In
passing Thunderstorm Comparing It 10 n thun-
derstorm Il is comforting TO remember that such
storms are soon forgotten in the cheerfulness
oil ia-
clined. weak trust company closed its doors
and a small brokerage house suspended. But
the intrinsic worth OF securities not af-
fected by the days domestic foreign develop
ments Business on the railways and in Indus
trial centres was not paralyzed by the fall in
values or by the failure OF trust company. and
investors with common sense were not rushing
about 10 find buyers for their holdings Several
weak features I'm the situation have been elimi'
mated by the failures In Boston and New-York
and by the collapse Of a number Of weak specu-
Iative pools on the Stock Exchange. Liquida-
ton I'm stocks has transferred weak holdings to
the hands of powerful market interests. and
while emotional liquidation. manipulation and
/ hysteria run riot In the Street the bargain
| hunters quietly pick up stocks and doubtless
calculate: What fools these mortals be-"
/ The decline IN quotations yesterday was severe
/ I'm n number ~ issues In the early dealings, but
| at the low prices considerable support vas ex-
J tended and substantial rallies followed Re
| newed selling In the late dealings carried stocks
TO the lowest prices Of the year The direct
] cause Of the afternoon generalization was the
/ call money market In which rates advanced TO
/ the equivalent OF lS6 per cent. In part the ad-
vance represented manipulation the opportunity
arising from the action OF many lenders In call
ing for the replacement or Industrial collateral
| with other security Stock values at the
bargain level especially the cheap industrial and
railroad stocks Of merit. Bear traders may be
able to take their profits at a lower level. but
| the cautious speculator VIII doubtless cover his
contracts at ruling prices. The technical posi-
tlon of the market is very strong, while the real
value OF securities has never been greater.
! Stocks are being concentrated In ownership.
and the result OF this readjustment of holdings
will be- az 1t has always been in the past. a
sharp recovery and an active demand for secu-
| rifles at 10 and 20 point advances from people
| who are now anxious to sell at any price that
may be offered The good features In the sltua-
tIon do not appeal TO the trading element or to
| small speculators who are governed by feeble
| sentiment rather than by facts, and in the pres
ent instance the only subject that Is discussed
at all by the class of operators named and their
| Wall Street organs is that OF gloom.
New-York Is helping Boston, and II Is helping
London And the interior is beginning to get
ready to help New-York 1t may he well to
| recall the fact that from December |. 1898 TO
! February l. 1899 the New-York banks gained
from the interior in deposits S95OOOOO0. Busl-
ness activity will not permit such big move
ment TINS year, Dut tntIe II no reahoH I'D ptlltEe
! that the flow will not be large There will be
| plenty OF money at this centre for bull specu-
! iation in stocks and for gold exports to London
| People who are worrying over the monetary
| situation are merely wasting time and nerve
power The banks, thanks to enormous loan
| lduidaton IN the last six months. are In a
position TO handle any sort of a situation that
may develop Tine bond and stock houses
in good condition. margins are well maintained
and only Insignificant concerns are crippled
The trust company that closed Its doors a
small institution that will not he missed. It's
failure will In no way affect the general hnan-
cial situation II is well TO bear In mind that
the South African war is not permanent fac
tor In the situation and that the fate Of Ameri-
can investment values does not hinge on the
outcome OF the Transvaal trouble.
THE DAYS OPERATIONS IN BONDS.