The San Francisco call., 1899-10-29


Wire. which dropped to ASK on continued liqui-
dalton and uncovering of stop-loss orders
Pretty much all the stocks of companies in
the metal Industry were specially vulnerable
and there was profit taking In the leather
stocks. The latter supported by the re-
Gently active pool and prices bid up sharply
This prompted some covering by the bears in
other industrials before the appearance OF the
bank statement. But the scramble for stocks
Immediately upon the publication of the state
ment showed that large bear contracts re-
mained uncovered. The bulls helped on the
advance and bid prices up easily and by wide
jumps in the effort to take the market away
from the bears. The closing was feverish but
strong, and showed a higher level of prices on
the day. The Southern and Southwestern rail
road stocks made the best showing, as on pre-
vious days of the week. The bank statement
is completely mystifying. loss in cash by
preliminary estimates placed it under 81, ,000, 900
and most of them put II at over So, 600 900, In
the stock market indicated that the process Of
loan contraction has been stopped. Instead
there is loan decrease of 81, 1866 900. Bear
traders were confident that cash in the banks
would fall below the legal reserve REQUIRE
ments. Instead the surplus is more than
double by reason of the reduction in require
rents by loan contraction. No satisfactory ex-
planaton is available of the surprising recuper-
alton effected by the banks during the week
Deallngs IN stocks have been on a greatly
increased scale during the week, the total sales
running to near the three-Quarters of a million
shares mark on several days against prevail
ing daiIy average for some time past of less
than half million. The market has broad
ened the active list being than doubled
in length and many obscure stock coming for
ward into activity at advancing prices.
The disposition has been to advance the on
posing factors being the stiffness of the money
market and the weakness of some of the
yet made.
The growth of a new demand for stocks dur
ing the week has been availed OF TO take prof
Its by those who have been picking up stocks
during the recent depression and money strin-
genCy.
The advance in prices since the first week in
october, when the lowest prices were made by
the liquidation forced by the wholesale calling
Of loans, has been from TO 10 points in the
majority OF prominent railroad stocks. The
profit has been sufficiently attractive to have
induced some extensive realizing.
The effect Of this grew more marked as the
week progressed and the threat of an unfavor-
able bank statement undermined the confidence
Of buyers. The most influential factor in the
week S advance was the announced determina-
ton Of the railroads to advance their rates for
transportation. This action promises very sub
stantial benefits directly to stockholders in
railroad companies. the traffic of railroads
mas grown TO such enormous proportions that
q very slight change in the rate per ton for
freight would make vast increase in the ag-
gregate return to the railroads. But the Incl
dent has been significant in its wider bearings.
Competition for railroad business has been so
keen in the last few years that no cut rates
have been too severe for railroad managers 10
make In order TO secure business. The ad-
vance in railroad freight rates is evidence that
the traffic has reached such proportions that
there IS enough to keep the competing lines
all proftably employed. 1t is conclusive con-
ceived from all quarters of the country Of con-
gested freight, freight famine and eager
demand for new railroad equipment. The an
nouncement Of the New York Centrals inten-
tion TO devote the proceeds of its new stock
issue of S15 900 900 TO acquiring urgently needed
new equipment attracted additional attention
to the subject. Another incident having far
reaching influence on sentiment was the
nouncement of the closing of contracts by the
great railroad companies for steel rails next
year to the extent of 1900, 900 tons previous to
the advance in the price Several Of the Iare-
acf bax~a 5a1
tracts apparently With the hope that the prices
Of iron products would relax. The decision TO
a quantity Of product by authorities whose op-
portunities for information is far reaching and
skillful goes far to strengthen the general faith
The large orders placed by railroads ali over
the country for new freight cars tend TO the
same conviction. The future demand thus as
sured tended to counteract the theory that iron
prices would react with those Of copper, tin,
lead and other metals.
The multiplying evidences of unprecedented
activity and prosperity in business have
even the green industrials which have been
much in disfavor on account of the disclosures
regarding the capitalization and method OF
valuation of constituent companies. There
have been conspicuous examples OF price col
siders have showed more inclination to sup
port the securities than in other recent in
stances OF a similar kind. Money has become
easier at interior points during the week. and
the pressure upon New York has somewhat re-
laxed but has not ceased Rates for money
in New York have consequently been very
firm on account OF the already depleted cond-
tion of bank reserves. The hrmness OF for
eign exchange. in spite of the stiffness of
money here and its relaxation in London,
pied with the fact that foreign houses have
been large lenders OF money at the stock ex-
change. suggests that the return OF securities
for foreign holders has been on large scale,
although there was no evidence of such trans
fer through the usual commission house chan
nels The easy conditions In the London mon
ey market have detracted from the influence
of the war In South Africa on the stock mar
ket The market for railroad bonds has been
active and broad through the week and prices
are higher. United States new As and old As
coupon advanced 4 and DO registered. the 3s
and 90 coupon u in the bid price. The 6s reg
istered declined Z.