The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-08-27
EASTERN MARKETS
Ne7V YORK. St0ck Market.

NEW YORK. Aug. 25.-The market opened
with yesterdays dropping tendency still in
force and the weakness was not entirely over
come during the short session although there
were improvements. The London Exchange
was closed for holiday, leaving some uncer
tainty as to the speculative sentiment Of that
center, which was depressed yesterday Added
10 this was a weak tone in Sugar a new
crop OF rumOrs of a phase OF the war in
the sugar trade. The new stocks of the Re
public Steel Company dealt in on the
change for the first time yesterday" showed
q disinclination to maintain the price estab-
Nshed for them yesterday, and Norfolk and
Western ard Northern Pacific in the railroad
group showed a reactionary tendency. Con
solidated Gas dropped an extreme AZ Brook
Ign Transit heavy, and there were other
less important points Of weakness In the sec
ond hour OF the session the traders manifested
a disposition to cover short contracts, appar
emily in the belief that the unfavorabe char
acter Of the bank statement had been eXag
gerated as proved to be the case. Mobile ard
Ohio gained about 3 and Northern Pacific raj
lied over a point Great Western preferred
gained 8, Louisville. Chicago and Western IL
ffnois St Paul and Duluth and the Tobacco
Stocks a point or over Sugar advanced an
70 unsetfle The market The recovery in the
A feature was the movement in number or
insignificant stocks, including Peoria and East
ern Kanawana and Michigan. Keokuk and
Des Moines and Colorado Coal Development
Company. In view OF the forced Iquldation
tension OF credits to the amount of $685., 900
shown by the bank statement came as sur
prise. The decrease in cash proved to be less
than a million. whereas the known movements
of money indicated that II would be 5000
600. The decline in the surplus is. therefore,
largely due to Increase OF reserve REQUIREMENTS
BY reason of the loan expansion. Viewed apart
from the previous exaggerated estimates the
The Changes are Impossible of explanation
from any transactions known to the puoic'
The action OF the stock market was very II
regular and somewhat puzzling during the
week number Of the most prominent spec
iaties and industrials showed extreme oenor-
allzation in the week. The raids by the bears
upon these stocks were commonly supposed 20
be a tactical maneuver with the OBJECT OF Cd
structing the disposition OF the general list
70 advance AS a matter of TACT the Nlolent
breaks IN the specialties proved ineffective 10
prevent the rise Of various railroad stocks
When powerful support in the speciaitles rus
Their declines and the way seemed open Tor
general advance in prices. the upward move
ment was met by such heavy offerings to take
profits that sentiment of hesitation reas-
serted itself.
A comparison of prices showed some very
substantial gains in a small number Of the
industrials In the majority Of the standard
railroad stocks net changes small, nor has
there been any marked activity in these stocks
ern and Southwestern railroads show reac-
which has been on very large scale Ii has
been suficientiy obvious that the tendency OF
the market to advance was chiefly due to oper-
ations bv pools formed bv professional spec,I-
and then bidding several points higher for 100
shares is a quite familiar process on Wall
street but in number Of cases this week the
higher bid developed astonishing amount
of stock waiting to realize. good deal of
this according to the opinion Of specialists.
IS that stock that was bought at higher level
last spring by that portion OF the population
designated in Wall street as the outside pub
lie . having held through heavy decline. these
owners are eager 70 take a small profit or
even to get out without loss. In the higher
railroad stocks. such as the grangers and
trunE lines prices were long ago made to dis
count expected increases in dividend rates.
In some cases these increases have not come.
IN snite OF large gains IN earnings. but prices
have been maintained at the high level The
return on the purchase money at present divi-
than on high-grade bonds. Moreover, the great
actI,-ity in all branches of trade and industry
and the employment thus found for money
has made a rate for money which tempts 10
the conversion OF securities into floating CAPT
tai Last year authorities in the financial
world predicted that the return on capital
would be permanent at 1851 per cent, and
prices Of high-grade securities were run up
accordingly With the money in the market