New-York tribune., 1899-12-11
THE WEEK IN WALL STREET.

THE WEEK IN WALL STREET.
c.ooL market trading was in favor Of the
hears last week. especially at the close. when
serni-panickv condition prevailed. Lower prices
have not been accompanied by setback in the
business situation by declines in railroad earn
inps or bank clearings. or by any factors tha'
decrease the actual value Of securities. bear
nicnic has been held. Nothing has happened
~ real values but small marginal traders nave
been forced TO realize the relation OF money
market conditions TO speculation in time OF
small supplies Of money at this centre bear
traders have taken advantage Of the money
market position. and they have been helped by
many rich operators who are long or STOCKS
and who wish 10 accumulate further holdlhsS
at cheaper prices. Well protected holdlnss nave
mot come on the market, save in the cases OF
Investors whose convictions have not peen
hacked by courage. The general investor mas
not sold and the more substantial market III
terests have not disposed Of their hoiolhsS'
Technically the market is stronger than 1t has
heen in several months While intrinsic Vaiue'
ore Greater to-day than at any time this year
The long side Of stocks appeals TO the opera
for who is not interested in quick turns Cur
rent monetary conditions are not expected
10 last forever, and just as soon as money
srrrlies st this centre increase stock values
,..iU berin 10 measure business growth STOCKS
ro,a nassed from the ownership u many
neonle 10 tie ownership of a few people FUR
tter liquidation will only strengthen the tech
nicaj position Of the market People who are
long on stocks as a rule are investors, not hght
marginal traders. Their accounts carry owner
shin Operators who short of stocks DO not
own stocks, and they create their accounts py
selling securities that do not belong to them In
order 10 squeeze profits from short accounts
hear traders must be assisted by declining
prjces and while the recent course or Values
has favored bear operations. it has also created
a false sense of security that has induced eX-
tended short selling, on the theory that Whole-
sale liquidation of investment holdings Will soon
furnish level OF values at which enormous
hear profits may be realized Operators in
stocks who are at present persistent bears admit
that bull factors outnumber bear factors at the
rate Of ten 10 one or better, but they place
money market conditions ahead of all other con-
siderations, and they expect further liquidation
in stocks on account of the apparent scarcity Of
money the world over. Continued pressure may
bring out more stock before the end Of the year,
but It is not likely that the more important in
terests will sell as long as conditions governing
intrinsic worth remain at their present record
breaking level
The banks lost more than $5000000 TO the
Sub-Treasury last week. and more than $1,000
0O0 to the interior The fact that the market
price Of Government bonds has advanced To a
point beyond the price at which the Secretary
Of the Treasury offers to buy the 4 and ) per
cent issue has checked bond redemptions at the
Sub-Treasury. and unless the Governments
price is also advanced there is little likelihood OF
further sales on this account OF the original
offer about $50, 100000 has been taken up. The
money market, however, is not in a critical con
dtion, and in some quarters the opinion is ex
pressed that the high rates for accommodation
are due more 10 manipulation than to an abso
lutte scarcity Of funds. This opinion however. is
not well founded in the current case. unless dis
elimination against certain kinds of cOllatera
may be considered manipulation. month o.
more ago there violent manipulation o
money rates. but in the last week condition.
governing the money market appeared to be tn
real basis for rates, except perhaps in a few in
stances on this point it is interesting to quot
the opinion of The Financial Chronicle" whic
is as follows;
Some observers have expressed the opinion tha
this firm condition Of the money market has bee
largely due 10 manipulation. having for its ObeC
me establishment temporarily at least of a lowe
range of stock values. There Is no good reaso
for this opinion. Discrimnation against collater5
has had much TO do with the high rates recorde
during the week thus while borrowers on accept
able security could obtain money al per cent boz
rowers with certain lines OF Industrial stocks hav
IS substantial basis for the firm This is foun
not only in A renewal Of the movement of none
from this city 20 the interior: but also in the fac
that accumula tions in the Sub-Treasury have bee
large this week The disbursements for bonds her
have been very moderate amounting for the wee
10 $sIi.4N %, making since the purchases begaI
81 707 .259 SO Considering these adverse influences
therefore. II is not surprising that the mark
should be firm.
The foreign financial situation has much
do with the local situation for the strained con
ditions of foreign money circles prevent a move
nent Of gold this way. form Of relief whic
earlier in the year local bankers expected woul
develop And the Transvaal war being the chic
cause Of the high London money rates may h
cassed as a serious factor in our own fuanci;
situation. Money is firm the world over. In
credit is unimpaired. This is an impor:ar
point and well worth bearing in mind II
also well to bear in mind that there is now
ever before on record that domestic gold pr,
duction is adding S5.O00.000 a month 10 domest
supplies and that the scarcity of funds at tn
centre reflects trade prosperity throughout II
country rather than Withdrawals for hoardin
purposes There will be an enc to current MOI
etary conditions before present prosperity ruI
its course. When money is i'm greater supp
st this centre stock values will improve. II
Transvaal war will not be permanent affai
and South African gold will not always rema
away from London And the day will con
when Europe will pay its trade debts 10 tn
country In the yellow metal. Just now the