The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-12-24
Daily Record of Commercial and
Financial Transactions.
NEW YORK STOCK REPORT
Digest ofExchange News Mining Stocks.
Metal Quotations-Wool Prices and
Movements - Grain and Pro-
duce--Review of Trade.

opening sales to-day. The same buoyant
tendency was shown in the international
list of stocks. London had lifted these
sharply before the opening here, but they
bounded above the London parity to
level 'FRONT.' to points above last nights
close,
The urgency of the demand from the
beah3 constituted miniature panic. Their
short selling yesterday was based on an
assumption that the periodical settlement
in the mines department of the London
stock exchange, which was begun to-day,
would disclose so weak position there
that panic would be likely to result. On
the contrary, the earliest news from Lon
don showed that the settlement In Lon
don was proceeding easily and in an or
derby manner, sentiment there being
much encouraged by the shipments Of
gold from New York.
Rumors Of financial ENHANCEMENT and
forced liquidation occupied a prominent
figure in the financial world all day yes
tarday. To-day. on the contrary. 1t was
affirmed that $1.000.000 in government
bonds had been placed as additional Sc
curity for this man Of wealth and that
his difficulties were ended.
The professional traders accepted the
one rumor with the same credence as
they had the other and put In a lively
Two nouTS tTy1HB 10 Duy STOCKS 10 save
themselves from loss. Interpretations of
the bank statement were decidedly con.
fused and the market run off on realizing.
It did not get back to the top, but har-
dened again materially and closed strong.
The cash increase shown by the state
ment of s2.732.500 came as surprise in
view of the gold shipments and the drain
to Boston. The item of loans can hardly
be an accurate reflection of the net re-
suit of the drastic contrasts of the week.
The smallest of the decrease, 5000, 600.
must be the average system of computa-
tons.
What happened in Wall street this
week had been long time brewing. Any
one of half a dozen or more causes might
be cited, but any of them or all of them
combined were more properly but the
elimination of long series of causes
which precipitated the event The whole
may be summed up in the term over
speculation. .,N
Among professional spectators there is
process expressively termed pyramid
ing" Money is borrowed with which to
buy on a margin. When the price of the
purchase rises the advance is reckoned
as profit and Is invested in more pur-
ehases. The profits thus reinvested help
to advance the price and the paper profits
thus mount to enormous proportions. But
the demand which has thus advanced the
prices was a purely fictitious one. The
pyramid thus created is an inverted one
and it topples over when an attempt 10
made to sell to realize. The capitalists do
not call their operations "pyramiding,"
but the persistent imitation In values of
securities which went on for months has
the same effect 1t has long been evident
that any large selling to realize would
depres the market and some wealthy
comhinat tons have persistently held thelr
!. stocks and ignored the symptoms of COM
Ing stringency In the money market with
an obstinate optimism regarded the re-
Punishment Of the money supply, which
results have not justified
Capitalists and bankers who had UNDER
written the securities of many of the
new industrial flotations found the mar
+. ket taken from them and prices of the
securities in the open market dropping be-
low the underwriting price. With this
burdensome load to protect the growing
stringency. of money threw an avalanche
of all classes of securities on the market
to obtain needed funds. 1t was such a.
realizing movement on a large scale that
1t had long sought to avoid as the mar
ket was in no condition to stand it. But
once started, and the bears fully under
standing the weakness of the condition
and offering prices down with reckless
holiness. the fabric began to crumble
and seemed totterng toward ruin on
Monday. when the associated banks of
New York by concerted action offered
. $4,000, 900 in loans and broke the money
rate, which had jumped a " per cent a
day, equivalent TO 1SG per cent. per an
num-, in the frantic bidding of hard
!. pressed holders.
With the easing of the money rate the
panic was checked and the proceedings
reduced to some sort of order. The man
ket, however, continued feverish all
through the week under constant liquida-
ton. which brought prices in many i'm
pertant stocks lower than the low prices
of money.
Coming to the more immediate causes
of the speculative collapse, it is evident
that the duration OF the TransvaaI war
and the constant cessation of the South
African gold supply was counted upon
with confidence to be much shorter than
1t IS now evident 1t will be. London spec
ntators have persisted in rosy-hued opin-
ions and have bulled the market even
on limitations that military movement
was IN prospect. making large inroads
on the money supply to carry stocks.
Inc British military reverses have had
correspondinsly acute effect The conse-
auent difficulties have had a world-wid
effect, forcing up sterling exchange and
the money rates in Paris, Berlin and
New York and taking gold from all those
'eehters TO meet the necessities of the
coming annual settlements
The New York money market hur6enad
with extraordinary commitments on ac-
count OF the great industrial combina-
tons, nave been thus cut off from the
expected replenishment by gold imports
on account of the continued favoring
trade balance. Also the usual autumn
influx of money from the interior to New
York after the crop moving period has
been entirely suspended this year owing
to the business activity all over the coun
try. Still another adverse factor was the
continued absorption of funds by the
United States treasury, owing to the nm
expectedly large revenues which have es-
tahlished a running surplus The drain
has been particularly oppressive on New
York, owing to the large proportion. both
OF the customs and internal revenue tax
es, which are paid through New York
clearing house banks.
The large capitalzat ton and flotation of
hopes and prospects which capital was
carrying was thus made more burden
some OF the elements of distrust of such
hopes and prospects which multiply al
periods of difficulty and grow apaca with