The San Francisco call., 1899-12-24
EASTERN MARKETS.
Ne7U York Stock Market.

NEW YORK. Dec. 2s-The first transactions
o. the stock Exchange holiday disclosed how
much of yesterday weakness must be attrib-
uted 20 selling for short account. The f4sh 10
cover short contracts carried prices up without
regard 10 fractions IN the specialties. which
had been the mark OF attack. Sugar, Metro
politan. Tobacco. Brooklyn Transit and Peo-
pies Gas jumped from 81 20 points on open
sng sales. The same buoyant tendency was
shown in the international list OF railroad
stocks. London had lifted these sharply before
tie opening here. but they bounded above the
London parity 70 level from 1 10 points
above last nights close here. The urgency oi
the demand from the bears constituted a min
iature panic Their short selling yesterday
was based on an assumption that the periodical
settlement in the mines department OF the Lon
Csn Stock Exchange. which began to-day,
would disclose 50 weak a position there that a
panic would be likely 10 result on the con-
trary. the earliest news from London showed
that the settlement IN London was proceeding
easily and In an orderly manner. sentiment
there being much encouraged by the shipments
OF gold from New York. Rumors OF financial
entaug leuneut and forced liquidation pursued o
prominent ngure IN the financial world all day
yesterday. To-day. on the contrary, II was
affirmed that ST. uO0.0n0 la government bonds
had been placed a. additional security Tor this
man Of wealth, and that his difficulties were
ended The professional traders accepted The
one rllmor with the same credence a. they had
the other. and put lu lively two hours trying
Interpre tations ~ the bank statement were de-
cIledly confused and the market ran OF on
realizing. IL did not get back 10 the tor. but
hardened ara.u materially and closed strong.
Frhe cash increase shown by the statement OF
g. 122 500. came ar surprise, IN view OF the
gold shipments and the drain 10 Boston IL u
AZ evidence OF the hidden resources brought
cut ia such crisis as that OF the past week
me item of loans can hardly be an accurate
,eaeefion of the net result OF the drastic con-
traction OF the week The smallness OF the de-
crease. s.. oss, 600. must be que 10 the average
rr.rffn FIfarfe hEH hgE Cd fF
Wall street this week had been a long time
brewing. Any one OF half a dozen OF more
81 AN of them combined were more properly
a,ut the elimination OF a long series OF causes
which preceded the event
Tbe whole NAV he summed up In the term
overspeculation. Among professional sPeoula,
tors there Is process ehpressise.y termed
20 buy on a margin when the advance Il reck-
oned a. profit and is invested In more pur-
rhaees The profits thus reinvested help 20 ad-
vance the price and the paper pronts thus
mount w O. enormous proportions. But the
demand which has thus advanced the prices
vrae a purely fictitious one. The pyramid thus
created Is an Inverted one and Il topples over
when al attempt ie made 90 sell 10 realize. The
capitalists do not call their operations pyra
miding, but TIE persistent lnhatloh IN Nsloes
of securities which went on for months had the
came eject II has been long evident that any
large selling 10 realize would oepress the mar
ket and some wealthy combinations have per
tfetenly held their stocks and Ignored the gymp-
toms of coming stringency IN the money nnr-
ket with an obstinate optimism regarding the
repienifhment of the money supply which re-
suits have not Justaco. Capitalists and bank-
ers who had underwritten the securities OF
many Of the new Industrial nOtaflons found the
market taken from them and prices OF the Sc
curlties in the open market dropping below the
underwriting price With this burdensome load
10 protect the growing Etrngency OF money
threw an avalanche o. all classes OF securities
on The market 10 obtain needed funds IL vas
Fuoh a realizing movement on a large scale tha,
ID had long been sought 20 avoid. a. the market
vas ln no condition 90 stand g. But once
started. and the bears fully understanding The
weakness of the condition and Offering prices.
down with reckless boldnesF the fabric began 10
crumble and seemed 10 be tending toward ruin
on Monday. when the associated banks OF New
York By concerted action. offered $40. 600 90 in
loans and broke the money rate. which had
.umped 20 q per cent 4 day. equivalent 70 lSs
Der annum in the frantic bidding OF hard
pressed holders. With the easing of the money
rate the panic was checked ana the proceed ing Is
reduced 10 some sort OF order The market
however. continued feverish all through the
week under constant liquidation. which brought
prices IN many Important stocks lower than the
low prices OF money.
coming q the more Immediate causes Of the
Fpeculafive COLLAPSE. IL ls evident that the du-
ration of the Transvaai and the conae-
ouent cessation o; the South African gold sup
rly was counted upon with confidence 20 be
much shorter than II r. now evident Il viii
be- London speculatOTs have persisted IN rosy