New-York tribune., 1899-04-07
BONDS.
r,,r DAYS OPERATIONS IN BONDS.

r.o stock market opened moderately strong
-. s,bseouently sold off on renewed pron'-
- and bear pressure. Call money was
.,. oc,ve and a furry in the morning TO J.
90 IAN, was the ostensible cause for weakness
.o.t. II is well that the securities markets
~ w. ,ssn reactionary this week, for the money
..ss, Is too unsettled to make an enthusiastic
.-r ,omnaign advisable. II remains a bull mar
-. ,oveyer as far as the larger interests are
'....,ned for on all recessions they are buyers
', .tocks to hold for higher prices. Knowing
-. factors that are responsible for the current
,sb rates for money the substantial and con-
.,vst,ve men in Wall Street are net alarmed
,,s, the advancing tendency Of call funds, nor
:. they disposed to sell their stocks because
no professional element is actively engaged IN
..orts 10 establish lower level Of values. Lower
-srket quotations will merely enable the big
-sr" TO accumulate more stocks, while il is not
mpv that the well-protected marginal trader
vm liouidate his holdings at 2 loss The out
bok is too promising for that. Money stringency
,,ealIed (Which is confined 10 call money only
vr not last for any length Of time, and as fire.
gently painted out in this column, rates ought
10 begin to relax after April 10
Wall Street is exercised over the action of the
hanks in discriminating against industrial stocks
"a collateral for loans. The action of the banks,
however. Is likely to lead 10 a more heathful
SPECULATION in the industrial stocks, while
eventually having the effect of separating in
,he speculative mind the good industrials from
the bad. And in connection with this it is per-
rnent TO remark that there are many good in
dusral stocks representing companies that are
as certain 10 make returns to their stockholders
as are many Of the frst-class railroad proper
ties The banks might therefore well make dis
erminations. The influence of stiff money upon
speculative sentiment was more pronounced
Yesterday than at any time this year. owing
yrhaps TO disbursement on the part of weak
tolders rather than 10 the actual exigencies of
he money market. The necessity of big mar
nns IN an active market was probably forcbly
Impressed upon the small spectators. especially
rpcn those traders who were long Of the issues
hst have enjoyed such striking gains in the
hn few weeks The decline in Brooklyn Rapid
Transit, Manhattan, Metropolitan and Federal
Steel made 10 per cent margins tremble. In
many Of the more active speculative issues stop
loss orders were sought out by the bears and in
The absence Of aggressive support declines were
easily accomplished.
The reaction yesterday, following the declining
tendency OF Monday and Tuesday, has strength
ened the technical position of the market and
makes the outlook for an active bull movement
more promising. The discounting process in re-
laiion TO the expectation Of easier money and
bull activity this spring was pronounced last
week and the week before; but perhaps too
rapid for among the smaller operators the
theory apparently prevailed that to make money
II was only necessary to buy high-priced issues
and hold them for the much-heralded spring ad-
vance The theory was all right, but margins
We're too small. The possibility Of bear pressure
ana further nurries in money was not cOnced-
20; out yesterdays market proved the fallacy Of
sucn reckless assumption. False crop reports
heped the bears in their attack upon values.
Al the low level and on a scale down buying
o'oers representing prominent market interests
were executed. The fluctuations in the active
BLOCKS since Monday have been violent. and the
reactions from Mondays high point clearly
prove the necessity Of larger margins in the
current market. The following table shows for
= number Of active stocks the decline from Mon
esys high level, made at the opening TO the
'0W level recorded at yesterdays close: