The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-12-03
MONEY is THE FEATURE
Stock Market Influenced by The Call Loan
Rate.
A VERY LIGHT REALIZING MOVEMENT
Activity In Stocks During the
Week Has Been Restricted.

| Week Has Bcen Restricted.
New York, December To-day the stock
market was sluggish and drifting throughout
| professional traders were inclined to bu,
stocks at the opening with the idea OF dis
| counting a favorable bank statement Th'
| appearance OF the statement on the tape wa
| the signal for light realizing movement
| and as there was no outside demand to aD
sorb It, prices fell away. The closing wal
| dull, but distinctly easy, the downwar drill
having established LIBERAL sprinkling of ne
losses wnere the level nad been highei
throughout In the early dealings. Sugar ant
Glucose were strong on the reported plan foi
consolidation aud absorption of competitors
! There were evidences OF strength IN Union
Pacinc, Northern Pacific. Darlington aud
Chesapeake aud Ohio, aud in one or TWO of the
| less important industrials. None of the gains
were well maintained, the whole list being
affected by the custer tone In the final deal
| ings. The bank statement was fully as la
| yorabe as had been expected though the
| liberal expansion IN loan account was ua-
| looked for. The high rates for money and
the satisfactory security offered attractive
Inducements to the banks to keep their loans
close TO the limit OF the legal allowance.
The lack OF response to the bank statement
was due to the understanding that the re-
cupsration In reserves was wholly due to
bond redemption operations with the sub
treasury. The fact that the movement OF
currency is still In favor of the Interior on
balance and the progress OF the sterling ex-
change rate towards the gold export point, a
fufther step OF which was made today, leaves
the future OF the money market still un-
promising from the stock operators point of
view.
Activity in stocks during the week has
been restricted to a few individual securities
and the general list has been rather neg
lected. The dropping tendency of prices was
partly offset by the heavy absorption of the
great trunk line stocks and the sharp upward
movement in the prices of those properties.
The reports put in circulation to explain these
movements are mostly. ANONYMOUS and are
allegations of consolidation of ownership to
mider intimations of a friendly and mutually
advantaseous cooperation. Though lacking
explicit knowledge. the Wall street public
find confirmation from the stock tape of its
conviction that policies have been inaugurated
which promise substantial Improvement of
the trunk line situation The special field
for the benefits to accrue is Indicated by the
way some OF the railroads have suffered on
account of the shifting of holdings into trunk
line stocks Besides the trunk line stock
there has been movement in number of
extremely low priced stocks. selling under
$40 and few even under $40 per share. The
strength of these stocks was attributed al
most entirely to individual causes, but the
general tendency towards consolidation either
of small lines with each other, or of small
lines with powerful existing companies, was
a conspicuous element in the explanations
offered of these movements. Such move
ments have resulted In fair sprinklng of
net gains through the list But the majority
of stocks are. slightly lower. Disappointment
over the failure of the money market 10
work easier in spite Of last Saturdays I'M
proved showing of the banks. was the prin-
cipai motive of the indisposition to embark on
speculation 1t Is the custom for stock brok-
ers to charge their customers 6 per cent for
funds employed in carrying stocks no matter
how low the open market rate for call money
may go. Now that open market rates are
ruling at or above 6 per cent brokers have
been charging their customers accordingly
and have met with protests. While the call
loan loan rate served 70 wpe out the PROFIT to.
brokers on loans they are not inviting ope-
rations by their clients on any extensive
scale. The weeks events seem to put the
return to cheap money some time in the
future. The Bank of England has waited to
advance its official rate until 1t has secured
control of the open market by selling consols
and thus lifting money from the market. The
self against special demand to come later,
partly to meet requirements for yearly dis
brrsements by corporations on January l, and
partly, 1t is believed in expectation of
further issue of government securities to meet
the South African war expenses.
An unusually large volume of loans by
Canadian banks is in the New York market
aud the advance in the London money rate
threatened to attract these funds necessi-
tating their withdrawal from New York. In
the New York money market itself the re-
weeks bank statement has not led to any
appreciable increase in offerings for loans
Neither has the addition TO resources during
this week by reason of the suhtreasurv opera
tions in connection with bond redemptions
The strength of last Saturdays bank state
ment was due TO the operations of only one
bank, but very influential one These ope-
rattons disclosed a change from the recent |
policy OF calling in no more of OUTSTANDING
credits than necessary to keep barely within
or even slightly below the level reserve re- |
quirement. Not content with an increase in |
cash resources OF over IS. 600 200 this single |
Institution contracted its loans 10 over 81
oooooo last week This looks like entering |
upon system of regeneration In prepara- |
tion for meeting coming demand. Such |
policy, while STRENGTHENING the showing Of
the banks, would still further restrict funds
available for speculative operations In stocks /
the interior exchanges have turned AGAINST
New York again during the week Although
fhe treasury department has extended the
period OF IFS offer to redeem bonds. OF VIII. IN
about 10000 are stu available under the
OFFER. il Is now manifested that this measure
serves only as n safety valve and that II no.
leases no funds except under pressure of high
money rates. ANY considerable encronchn,ent
on money supplies for purposes of s.ock
sneculation threatens to precintate 2 money
stringency, which would in itself defeat HE
object OF the speculation by bringing liquida-
ton on the market.
DEALINGS In bonds have been on a moderate
scale and price movements have been in SYM |
pathy with the stocks of the same companies. |
Following are the quotations on stocks as