The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-02-08
FINANCIAL AND COMMERCIAL.


hn AVpa -
While the ratification OF the peace treaty was
n rrent relief to every one Interested in the se-
curity market, IL did not stimulat afresh de-
mnnd for stocks. The event had q good effect
upon the London market. which was reflected
here in the early dealings. principally because
foreign arbitraRe houses bought 25.OOO or
40. shares OF various stocks. There was.
however, no other response TO the good news. a
circumstance that induced some liquidatlnR
sales and finally encouraged a vigorous attack
upon values by the professional element. This
movement, which occupied the last hour ortwo
Of business, was more successful than any sim
ilnr attempt made since the market began TO
hesitate ten days ago. For the first time in
many weeks the entire list, with but very few
and unimpoEtant exceptions. sustained net
losses, and these ranged from l to 2 y cent. in
the usually active stocks and In the speclaltles
they were 3 TO 4 v cent.
The absence OF an active demand for stocks
through commission houses was construed In
many quarters as evidence that the buying
power has become exhausted. It's a question,
however, whether this view is absolutely cor
rect. The money markets throughout the
country indicate that there Is still a large
amount Of capital seeking employment. It'll
possible. however. that those who control 1t
have. owing to the extraordinary rise in prices
and the disturbance in the Philippines, be-
come CONSERVATIVE al hSlIik AZ W
in lending It to others. A reaction in
prices. which is logically due. is more likely
70 r~eattract capital to the security market
than almost any other development. A decline
OF several points from the highest prices re-
corded is certain to have Its effect upon invest
ors and spectators In determining the cheap
moss OF securities. and at the same time it re-
duces the amount of stocks held by overven-
turesome traders.
While there was n good deal OF liquidation
to-day, It appeared to be entirely voluntary. for
nt no time was there n pressure to sell. Prices
Yielded most rapidly in the last hour. when the
effort to depress prices was most pronounced.
The borrowing demand for stocks at the close
of business Indicated that a short interest OF
considerable magnitude had been created.
Quite a little capital was made out OF the ar
rival from abroad of a part OF the large
amount OF securities sold by Europe since
the beginning Of the year. This. however.
was merely an incident that contained
no element Of news. for the European
sellirR has been q feature OF the market prac-
tioally ever since the upward movement began.
That selling has for nearly q decade past re-
suited in a steady reduction OF our indebted
ness abroad, carrying with 1t a constant dim
mutton OF the amount RENTED annually for
interest and dividends to foreign holders OF
American securities. This market has alb
eorbed and digested these foreign holdings
without difficulty. and will probably continue
10 do so because OF the increasing wealth and
growing prosperity of the country. The mar
ket presented no especially weak feature; In
fact. the reactionary movement was unusually
uniform. The tone at the close was heavy at
about the lowest prices.