New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-10-15
financial.
The Financial World.

sudden stimulus was given on the bun side by
the announcement that all interes, would p.
prepaid on Government bonds NJ 70 July noy,
The squirt did not last long II was arg,.,
that not more than ten 10 twelve million. uoua
be paid out under the conditions u rebate Fl,
interest: and though II Is would help 10 avoid
money squeeze II no such supply a. vonid
be required 10 bull the market N Tho vary
next day the market became profoundly eul
although there was a porceptibie increase n
the amount Of money Offering On Th4fsiay
money rates we're lower than before and hat
day liquidation began to appear moro plainly
IN the stock market II became more pro.
nounced or Friday when the closing rate for
money was per cent By this time The Stree,
began to wake 10 10 the situation. seeing nat
It was the old story over again-a market he'll
up through a period Of tight money nine tine,
out Of ten declines as the money pressure Ia
relieved
Bankers say the situation is clearing tha, ls.
in respect to the money market The stock
market is a different thing The bank state
ment yesterday showed that The banks we're
continuing their policy Of keeping themselves
Just above the line o. legal reserve, and that
to do this they We're st.ii reducing loans The
Interior demand for money j. not wholly sai.s.
fed yet, and the price Of foreign exchange gives
no hope Of relief from abroad in fac' j., some
times raises disquieting feelings that Europe
may yet draw from this centre.
As a matter Of fact. however II IS booming
more and more apparent that the trouble With
the stock market is no. a shortness - 'oanabls
funds but plethora Il stocks which The public
will no longer buy. This does not refer 70 the
old standard securities. which are nov really
minority of the list II refers 20 th- mass r.,
| creations Of the past two years II does not
matter whether money Is high or money Is low.
90 per cent or . per cent-the public has had
a surfet Of these new dishes. and ran digest
no more In the language OF the Street. there IS
no market for them.
The way some Of these new stocks have pro-
crossed downwards almost from the day they
were put on the market has aroused very bitter
feelings The talk about one conspicuous houseis
all over the Street When Malt preferred and
common dropped the other day the preferred
several points between sales. 50 that g ls now
quoted al not much more than hale % what 9,
was when investors were urged 70 buy II as
safe investment the talk became loud an.
strong the more so az this stock is hu- one o,
several which have been put upon The narzs,
! bv the same house and which have gone more
| or less the same way Il is useless for t.e pro
noters 70 repeat parrot-rke the same story
there is nothing the matter with the com.
| pany" There must be something the matter
when a stock while SUI paying d!v.teats
keeps dropping ard dropping as this stock has
/ done
Then there IS the new American Ds''ierss
stock This has not yet been listed being dealt
/ in on the curb There seems 70 be no support
for IT a. any price. Rumors are current that
some Of the subscribers n the issue have de-
faulted on their subscriptions Whether r no,
this be SO, the subscriptions at the current
prices Of the stocks represent loss Of something
! like one half the money subscribed
II is such things as these which have cu,
! into bank accounts 60 severely. and which must
/ in their after effects cause liquidation N TIE
sound securities For il may be assumed as
general rule that the majority Of people who
have good things have also at some time or
another during the industrial boom. taken On
some amount Of things which are not good
and to hold these they may have to So. hose
good things for which there IS SIN rsady
market or II not pinchei u that extent th-y
are yet tied up 10 degree which prevents them
taking on new Obligations The declining prices
Of the newer Issues ~ bonds IS an evidence -
this state ~ things for though the bonds may "a
intrinsi ally sound yet they have not hat '.n'
10 get widely scattered among investors Large
amounts are still held speculatively. ana AT
time like this they drbbe on the market cease
lessly.
It may and does seem strange 20 many people
that the market should be heavy and defining
when business is evervwhere rushing when ne
railroads are gorged with traffic. when tls man
ayers are meeting To discuss the RAISING - rates
and how 10 grapple with the problem 4 car
shortage. and SO again hear the ~ "a
mfar cry: Wall Street IS the only -e sF',
| IN the country" s. II is-and SO sometimes L
is the only bright spot in the country For Wal
| street anticipates 1t IS generally Two up th.es
months ahead II was in anticipation = conii-
lions If business as now see them chat the
| prices Of securities went up It VS. ~ slcA
anticpations that the immense volume < new
Industrial securities was created. and tha crea-
ton has continued not only here bar abroad
equally, until the rising price Of money all over
the commercial world gives warning chat th'
EXPANSION Of credits has reached rs iiW.t Then
it comes that something Happens IS netting
| which every one feels 30 be a serious ir0to'e'
| although unwilling 10 concede x THIS s'ns-
thing has happened in the Transvaa. war"
itself small thns as wars 60. bur CONNER
cially serious in this that II has cut or aorNpS
one Of the worlds largest sources of god supply
and established drain the other way IHIe'
years ago. such war would have been O.
small moment for general speculation AAi me.
! scarcely more than started. Comns 10 me e"'
Of a three years boom. il IS different "a''''
How long this supply Will be cur or 10 0"'
can tell precisely When long debated '"'s
tions pass the stage Of talk 70 the "otN'S 'u.
in blood and iron, all sorts OF things happen ~
may be that four or five months Wi '"' ~"
outflow Of gold resumed, and X may ''' "s'"'
be that year or eighteen months WI" '0 ~
CURED 70 repair damages Onder any
stances. coming at this time the war IS i So
husin.ss-hoth from the humane ana the COM
mercal point of view.
II has been already said that the Old ana
.,,,,r5 s,,,.l,s have So fa~ shown Nttie change