Arizona republican., 1899-10-03
Broken Upon Last Week by
Dewey.
THE BEARS TEMPORARY GAIN
The Outlook Is Brighter Than
Week Ago.-The Financial SfrIn.
gencY Has Lost It's AcuieneSS
The Effect of the South African
war Has Been Discounted by
European FInanCierS.

New York, Oct 2.-(Special. 1.-The
closing of the stock exchange and the
general suspension of business for the
last two days of the week, incident 90
the Dewey reception. has entirely
broken up the natural course of bust
ness in the stock market for the last
four days. The prospect of the inter
ventiCn of three days during
which there would be no ac-
cess te, the market in the event
of adverse contingencies has nat
| urally caused considerable tempo
rary realizing, and that circumstance
has been an invitation to the bears
which have they have not failed to
turn to account. With relatively few
buyers and many sellers, the course of
prices has naturally been downward;
and basis for buying has thus been
laid which, in the absence of new ad-
verse factors during the interim, may
result in repurchases, covering OF
shorts and a consequent reactionary
advance in prices at the beginning OF
next week.
Apart, however, from these tempo
rary Interruptions, the position of the
market, in respect to certain adverse
factors, shows a tendency towards
Improvement The recovery of $2,00O,-
900 in the surplus reserves of the
banks, in spite of still free shipments
of currency to the interior and an ex-
cess of $3.73O,O00 in receipts over pay
ments at the sub-treasury for the week
is a hopeful symptom. Tt shows that
the banks have got the situation under
control, and without any violence to
their Wall Street customers beyond a
sharp discrimination against certain
industrial collaterals. Also the tone
of the London market is more settled,
though there is no abatement in the
chances for war with the Beers; which
is an indication that the warlike con-
tingencies have been already largely
discounted there, leaving so much less
disturbance to arise on the actual out
break Of hostilities. London, Paris
and Berlin are keeping a sharp eye on
the maintenance of their stocks of
gold and may be expected to do all in
their power to prevent shipments to
this country. And yet our exports are
so large that the foreign banks must
calculate upon having to ship metal
to New York in free volume at no very
distant day. With a steady increase
in the supply of grain and cotton bills
and the current great disparity IN
money rates between New York and
London, it is not impossible that a few
days may bring the rate for sterling
exchange to figures that will admit of
our importing gold This need not
necessarily be an occasion of alarm
TO London. Within the last two years
we have had abundant evidence that a
large debtor balance to- the United
States may be attended with an abb
sence of imports of gold to this coun-
ry.. 1t is not likely that our banks
would care to be flooded with foreign
supplies of the metal Their chief inn
mediate concern is to see the present
;tringency relieved through the
strengthening of their abnormally low
'eserves. AS above shown, they ara
llready gaining control over that ele-
nent in their position; and in view
# the unusually large stocks of money
n the interior, it would not be sur
,rising if the reflux of currency from
he west set in earlier than usual
he more so because the western pur-
hases OF merchandise at the east this
eason exceeded all precedent. Under
hese circumstances, it is not incon-
eivable that a moderate importation
f gold-say ST., 5,000, ,0O0-might be re-
'arded by the metropolitan banks as
etter serving their interests than
arger volume. With the return of,
ay, $50 0O0, 900 of currency from the
ntericr and the receipt of S15,O00,000
f gold from Europe. the reserves
yould be restored to a condition com
atible with steady ease, and their
interests would be bstter served by
dvancing against foreign exchange
nd permitting gold to remain among
ur European customers than by en-
ourag aging the shipment of the metal
ither and forcing stringency abroad
the cost of crippling purchases of
lr products and forcing an unnatural
eturn of our securities These fac
,rs suggest a probability that we are
pproaching the end of acute string
lcy in the money market and show