The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-12-17

money situation there. The local money out
Jock was the determining cause OF the late
break 10 prices ana Withdrawal OF support.
IL j. many months since the stock market
has been subjected 10 violent and drastic
As4ldation a. That ~ the past week At in
teIh ais " was mex with some aggressive sup
pDrt boy friends az different stocks, and the pro
iesslllal bear Operators have occasionally
closed out their short contracts at the inviting
prorts offered, bat at other times all other
slri lrt seemed withdrawn. while heavy stocks
or securities were being forced 10 sale by the
values reached an enormous eggregate. com
itiert estimates placing the figures IN the hun
ciliues were heavily cut and stocks placed as
collateral were forced 70 sale Tor the protec-
tQn ~ money lenders.
The bear operators were very bold and ag-
gressive and offered prices down In q seeming
lt reckless manner Wherever any Indication
could DE had OF large speculative holdings. IN
some of the inuustrIals. which have been man
ipllated 10y speculative pools. the violent de-
cline Ia prices disclosed some enormous hold
mas and tie bears r.arA.f sensational n-ofrs
The combination OF circumstances threw the
i-lrSet into conditions bordering on panic sew
quick reeI ponce 10 any development in the Lon
don money market pointed strongly 20 that as
me seai ~ trouble. All the powerful resources
ct me huslsh financial center We're evidently
being eAeTted % attract funds 70 meet present
ana prospective urgent needs. The Bank OF
L-i.SlHud statement shows a continued drain on
Interior points 70 supply the extraordinary
trade activity in England. lust as the New
York banks have been drawn upon from inte-
r.ur points IN this country. The extreme de-
preston IN the London stock market % the
news OF the setback 20 the British operations
ana the convulslve recoyerles caused by even
vague rlfno4s CL successes - arraut the deduc-
zion that the English money market had ad-
tlsted Itself 70 hopes OF earlier relief than now
seems possible 10y resumption OF shipments or
gold from South Africa The urgent need Of
other RELIEF is manifested "a the vigorous up
ward movement o. sterling exchange az al the
worlds money centers. Both az Paris and
New York the rate reached the gold export
point during the week. The Importance attach
ed q the matter In the New York stock mar
ket was demonstrated IN the decentralization OF
Wednesday afternoon. when preparations were
making To export gold as well as In the sud
Den recovery ~ Thursday, when relapse in
the sterling rate raised the hope that gold ex-
Z 'rts were Tor the time aNerte4. Although the
sub treasury absorption ~ funds from the mar
announcement OF the Treasury DEPARTMENT.
decision 90 f9rego a rebate IN anticipation OF
ure is looked 70 relieve the drain from that
source for Tie immediate future. The course
~ The Interior exchanges has indicated re-
sI''n-e there also 70 tle reed or reilei IN New
York and funds have been received here NOT
only from interior points ia this country, hut in
canada With the RELIEF thus secured from
those sources the effect al the gold exports was
largely Offset. The stock exchange liquidation
itself has gone 70 such lengths az 10 materially
rerlenlsh the supplies 81 available funds The
volume 81 the transactions made Il evident that
the interests affected were larger than the orii-
nary professional operators Ia stocks The
week deN -Io. mefts in boston show that the
necessity OF support iu the copper mines mar
Aef was n factor Ia tle situation. large selling
being attributed also 20 the account OF import
aut Western centers. The Generalization pre-
scented in some % the newer Industrial stocks
was an Indication OF the burdensome nature or
the underwriters holdings and the narrow
margin Tor many Of the now foatatl0ns which
have been below the listing prices on the eX-
change ln many cases. Il is maxim OF com
merce that general rise IN prices induces
speculative buying. which IN Itself furthers the
rise in prices. But speculative buying Of com
wolities. which is not for consumption. and
Speculative buying OF security. which is not FOR
investme AT. are certain ultimately 20 carry
prices above the level ~ consumptive and in
vestrnent demand. IN the case OF securities the
price level reoedes AZ the rate for money ad-
Yances.
Speculative losses become necessary 20 secure
the rezd'ustm0nt 20 the true conditions based
on tho rate q return and its security. A GER
tain amount ~ investment buying has been at
tractel by the weeks relapse IN prices but IL
has shown notable falling on on any sub
stantial rally 30 prices.
speculative and newly issued bonds
have shown extreme declines N % %. points
But The more established mortgages have shown
no fluctuations of importance.
United states g advanced 4. old Is "A and
new IS = ln the ld price.
Y