New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-06-04
financial.
The Financial World.

The condition into which the market has drift
ed suggests that 1t Is good thing TO take
profits on rallies where the holder OF the stock
is not ready to hang on TO 1t for a long pull.
We are likely to flop around for some time to
come, with a general tendency downward. until
the market has reached a level where the float
ing stock has again got lodged In the hands
Of people who are strong enough 10 take care
OF what they have and to buy more. We ought
to see some further Improvement In prices for
a few days-that is. there should be a continu-
ance Of the rally which started In the market
the latter part Of the past week. 1t came after
there had been quite drop. and should go
farther.
The drop referred to may have been due In
some part to professional operations for the
fall; but mainly It was due to exhausted mar
gins. and liquidation OF certain large accounts.
This liquidation will continue: and until II is
complete. there will always be supplies Of GER
tain lines Of stock whenever the market gets
strong enough to take them without breaking
badly The short interest made from day TO
day by the traders Will probably furnish the
main material for rallies for two or three weeks.
The bank statement yesterday was alleged 10
be the cause of the sudden weakening In prices
just before the close. Most likely 1t was not.
because the statement showed only minor
changes from the week before. The more likely
explanation was that the traders were taking
profits not caring to go home long OF stocks
over Sunday. They have had some bad scares
lately are a little gun shy. The first OF the
seasons exports Of gold, however, did not
frighten them. for the market went up when
It was announced-the rally after the drop Of
the early part Of the week having then not
more than we'll started. We shall probably
send out some more gold this month. This is
the opinion Of the bankers. 1t will not be large
in amount, and will not have any effect on the
money market Money is plentiful and cheap.
AS It could not be figured out that the million
Of gold sent out. could be sent out at profit
on the prevailing rates OF exchange. there was
much talk about the thing having been done
for bearish effect the stock market. II was
actually argued that the City Bank wished to
depress prices and the break In Amalgamated
Copper stock was pointed to as confrmatory
evidence. The Bank is financing that stock
Be we'll assured, the insiders are not contem-
plating with any pleasure the discount at which
their stock is quoted They have discovered
that they have a white elephant on their hands.
The oversubscripton in response to their ad-
yertisement was delusive-delusive. that Is, as
Indicating that subscribers wanted the stock to
keep. This became strikngly apparent when.
the books having hardly closed IL was found
recessary 10 put orders in the market to hold
the stock at par-the subscription price. Here
WAS the disclosure that a large bulk or the SUD-
scrtntions had been made in the expectation
OF snatching q quick premium; in underwr'ths
Variance they were "stags" the syhaica'e
onerations with the stock since have been
little bewildering They have been suggestive
OF laundering And nothing could have been
more unwise In its way than g. statement sent
ont on Friday intended as a sort OF apologeuc
EXPLANATION that Tess than o,oOo shares
changed hands on the decline from 81 10 %
This was a confession that IL only required SAFES
of 5000 shares TO break the price points oi'
that there was next to no market Tor the STOCK
outside of syndicate orders. This Is ho'hins
against the stock itself. for the long pull as an
investment: but It does show that the fotation
NJ the company was day late. The time had
gone for new things.
This month, and very soon the oi'iuehuS
should be declared on Federal steer common
and on Steel Wire common. 1t Is uhoers'ooo
,hot the former will be at the rate of per cent
That on Steel Wire has been talked ABOUT as
being 8 per cent; but this is a trihe hard 10
,,o,,a,a 70 u "a at 6 per cent It will be good
enough for anybody and all tna' any oi'e ""'
a. right even to hope for.
The dividend declaration on Sugar is also
close ar hand The stock broke 40 on Wednes-
dav but afterward rallied to 141, closing yester-
DIV at 145. Some people are strongly convinced
that the dividend will not be 3 per cent; but the
Street has so often been fooled about Sugar
dividends-which are always going to be IN
creased or cut according to the market state
~ The stock-that It refuses 10 credit the rumors
~ q coming reduction. The stock, however,
does not act strong. II lacks snap. 1t went
down on a toboggan slide when the Boston pool
got overloaded and had to run; and though IL mas
rallied it seems rather heavy even on the raliy'
for a stock which is just going to pay It's regular
per cent quarterly. Perhaps the conceded
fact that the company's surplus must be drawn
upon for such q dividend. has something TO DO
with It.
The traction stocks which were quick In the
fall. were also quick in the rebound They are
always rapid in their movements when they
move at all. We shall not have TO wall long
TO hear something authoritative on the opera
ton of the Ford law. The traction people are
gathering their lawyers and the State officials
are also gathering for consultation. IL Is GEAR
" going TO be legal campaign. TO be fought
| I'D to the Court of Appeals, II possible II Is
| said. on pretty good authority, that while the
corporation lawyers will do the best they can.
! they privately concede that the prospect Oh
escape from a heavy increase in taxation Is ex-
ceedingly poor The amended bill which was
passed, closed UP some large loopholes that the
original bill had In 1t.
Interest in one Of the most dragged out 10
| ceiverships which ever worried unfor'una'e
bondholders. has been revived by the advertise
! ment OF the Colonial Trust Company ASKING
bondholders of the Toledo. St Louis ana nan
sas City Railroad to call at their once O
calling there they were handed copies OF pe-
culiar circular This circular asked. IN e"s'.
the bondholders to give three gentlemen ha'nee
therein. an option on their bonds. at par anu