Omaha daily bee., 1899-11-05
MOVEMENTS OF STOCKS AND BONDS.
Array of UnfavOrabIe Events During
Week Culminates in n SIumn


NEW YORK, Nov. 4-Snce the surplus
reserves Of the New York banks fell to
about s25O,OoO In mid-September the pro-
fessional traders in stocks have looked for
deficit In the required cash reserves of
the banks almost every week. The wiping
out OF the surplus shown today was, there
fore not a surprise; The weeks events
made the stock market peculiarly vulner-
abe IN spots and the slump in prices of
gaze Ss an Of de-
pecially, which touched 40 at the opening
and was above 50 when the bank statement
breaks between TRANSACTIONS is reachine ca 'as as
high as points. Marginal accounts in this
specially were wiped out right and left and
which. 1t closed. Sugar and Brooklyn
Transit were also losers to the extent of
pnm0er S.1 Of other
points, but the general list reacted only a
fraction There were some violent recov-
cries from the lowest level and the closing
was feyerish and greatly excited at net
losses all through the. list,
The speculative excitement was increased
by the fact that the bank statement was
withheld until ten minutes before the close
Of the trading Efforts to close accounts in
the sh9rt rematnng made the market
by the statement is somewhat greater than
was expected. which, Is doubtless brought
average system Of computations " The rhe
trivial contraction in loans of less than
S2eO, ooo can only be explained on the as
loans by the banks early In the week was
offset by subsequent very liberal exten-
sion OF credits. The growing ease in the
Such extension of credits must be based on
faith OF, the bankers that the current
on sasa Is Of %
exchange at all interior points during the
last week indicates the ground of this
/ faith. The weekly bank statement of the
| New York clearing house institutions had
not shown deficit since 1898 For six
near the vanishing point and at least half
and something more OF the individual mem
bers of the clearing house have been below
sought to build up a surplus in that time,
but have apparently been content to dis
criminate in the calling OF loans against
with their security thus improved to Keep
their funds loaned up to the limit of the
legal allowance: The average cash hold
s33S,s50 The amount of loan contraction
necessary to bring the proportion of re,
serve back TO- the legal requirement would
The manner in which the stock market
took the reyerses OF the earlier part OF the
week and the operations of aggressive bull
pools and powerful inside interests In
various properties during the latter part
Of the week have deepened the apprehen,
sion of the unwieldly short interest and
they have bought very heavily to cover con.
tracts, The bear party have been very per.
| slstem ana connuent up 10 thlS time bas
ing their confidence on the higher rate foI
money, which Is likely to continue as Ions
as the present unprecedented activity iT
business lasts. Higher interest rates, the,
argue, should bring lower prices for securi
ties on which returns are fixed. The bears
point TO the failure OF attempts to launcf
new industrials and the admittedly in
adequate measure of value behind man,
industrial stocks which have already beef
widely distributed at prices far above thos.
now ruling In the market The continued
discrimination against these doubtful Sc
curities by money-lenders and the CROWNS
inability OF insiders 10 support the price,
market values, argue the bears. But thi