Omaha daily bee., 1899-05-13
BRADsTREETs FINANCIAL NEWS
Large Liquidation Causes Decline,
Followed by II Sharp Rally.

Large LtQu1uatfOn causes Decline,
Followed by IL Sharp Rally.
NEW YORK, May 12.-Bradstreet's Review
tomorrow will say:
At the beginning of the week the market
experienced a general decline, attended by
considerable liquidation of long stock. On
Wednesday it rallied sharply on support by
large interests and exceptionally large pur-
chases for London. This fact was appar-
emily due to the existence of a large inter-
est in Americans in the foreign market,
while covering by the local professional
bears also tended toward better prices. The
purchasing continued on Thursday and re-
ceived support from the "big people," but
the market developed hesitation. On Fri
day the action of speculation was irregular.
An early decline was checked by the strength
Of sugar and other manipulated stocks and
the expectation of a good bank statement
today also had an effect
1t was noticed that the drop in prices this
week was in the main the result OF a purely
speculative cause, towit, the er-bought
condition of the market Stocks have ac-
cumulated in the hands of people who
bought on margin In expectation of con-
tinued rise. The buying power has, how
ever, become measurably exhausted while
disappointment at the action of the market
produced, as it naturally would. disposi-
tion to realize. The decline of last week,
though not severe, aggravated this tendency,
while in many cases margins were weakened
to an extent which furnished occasion for
enforced liquidation. One of the most
prominent manipulative operators of the
street, whose name was by common report
coupled with supposed bear syndicate, de-
MES the impeachment. But other profess
sional spectators certainly took an aggres-
sive stand on the bear side and continued
the selling pressure they produced to bring
about the outpouring of long stocks which
characterized the markets on Monday and
Tuesday.
Other circumstances, of course, played
their several parts in the movement. That
the Ford bill is regarded with eminent dis
favor by the local traction and other inter-
ests in New York is evident. The eXpecta-
tion Of an unfavorable government crop re-
port was also considered, though the street
apparently disregarded it on Wednesday and
it was not until Thursday that the granger
stocks were sold on the theory that the re-
port shows a reduction of wheat output
calculated to affect railroad traffic and
earnings.
The market has not suffered from any
fears of tight money On the contrary,
supplies of funds seem to be increasing, and
the rates were appreciably easier.
The bond market has been unaffected by
the events affecting speculative values, and
the demand for investments is as large and
almost as eager as at any previous time,
On the other hand the financial public has
certainly begun to appreciate the effects Of
the continued creation of new Industrial
securities, and a conservative sentiment has
asserted itself in this connection. 1t was
generally remarked that the proposition to
effect a billion dollar Steel trust by COM
blne of the industrials already formed in that
trade seemed to touch the limits of the
industrial movement, and some relief was
felt when it was known that the foundation
for this was merely the scheme to consoli
date and purchase the plant of Carnegie.
The appetite of the public for industrials
artr a chDtt 1afF
the $4l2 900 600 subscription TO the $75, 900 900
stock of the Amalgamated Copper company,
although that enterprise has been severely
criticised in some quarters, and 1t is noted
that the stock dropped quickly from pre-
MUM of about FIVE to one of a fraction
above par.