Evening star. [volume] (Washington, D.C.) 1854-1972, 1899-12-16
FINANCE AND TRADE
End of a Week of Heavy Stock
Liquidation.
AMERICANS BUYING IN LONDON
Temporary Panic Stopped by Aid
From This Side.
GENERAL MARKET REPORTS

Special Dispatch TO The Evening Star
NEW YORK, December 16.-The rcpulse
of the British troops under Gen. Butler
completely demoralized the London secur-
lily markets during the early trading this
morning. The disappointment was unusu-
ally keen, because of the fact that previous
rererses were expected to be overshadowed
by the brilliancy of an expected victory
FOR daVs the foreign markets had been
held up under unofficial assurances that
I-adysmith had been relieved. Declines
varying from to per cent but poorly ex-
press the disappointment following yester-
days defeat
The tension in the financial community
yielded to such a degree, however, that
panic symptoms prevailed for a time and
buying in that market by New York houses
alone served to turn the tide of specula-
ton. This buying, however. was very ef-
fective, and about ore-half of the early
losses were Iegained. London sold very
moderately on this side.
The local opening was a surprise, because
OF its relative steadineSs. The standard
shares declined from l to = per cent, and,
in many instances, first prices We're near
the lowest tor The day.
In such stocks as Tennessee Coal and
Iron. Metropolitan Street Railway and
Panhandle the declines were per cent
The latter stock having advanced l. per
might have been expected.
The one feature of the foreign situation
which is of most significance just now, is
that the drain on our gold supply is likely
to continue for some time. Londons need
for gold is increasing. and every days de-
lay in turning the tide of war increases the
urgency Of her demands.
The scarcity of money is in an acute
stage here at home and the banks are con-
fronted with a situation which will de-
mand the most skillful treatment. A gem
eral selling of our securities by Europe is
to be avoided if possible. and at present
the one expedient suggesting itself is to
ship gold In the hope of earning the Lon
don money rate.
This idea is being executed, as today's
shipments demonstrate. and more gold
would have been sent at the last moment
had the facilities Of the subtreasury been
equal to the physical handling of the specie.
As this prospect became more and more
pronounced selling was resumed for con-
siderable scale, and closing prices We're re-
corded under urgent dealings which made
the short session an extremely welcome
lief
The present week has been one of extern
sive forced liquidation. The strain on
financial resources has been severe and the
closing days of the year are yet to be met.
The prosperity of the country is of record
proportions but prices and not values are
the concern of the moment. The latter
quality will take care of itself in time,
but nervousness is present difficulty with
possibilities not wholly promising.
The bank situation in Boston is receiving
much needed attention, and it is hoped fur
Their difficulties may be avoided. The local
banking situation as reflected by today's
statement of averages shows that the re
serve has been increased 100000 for the
week. The total reserve over legal require
ments is 81 .025 S25. The loss in lawful mon
ey was S97o000. This item is not fully up
to date. since the gold shipments do not
appear. nor do the receipts of currency
from the interior.
A decrease of over SI.0O0,nao IN loans is
not up to expectation, since the heavy
liquidation had suggested a more substan-
tial curtailment. The street received the
statement favorably, but the condition of
the market demands a more powerful slim
ulant than this. The fear is that il may be
delayed.