New-York tribune., 1899-07-19
BONDS.
THE DAYS OPERATIONS IN STOCKS

The stock market was extremely uui
irregular. with final prices at smaH on"ne'
the greater number Of issues. Traoers wiz
Rnooklyn Rapid Transit stock snort iae'
and on Monday under the l1nprees'o" -.
strike would cause big drop ID liie
The security were again forced 10 ueiI.
-, :. ,,arvas+ as the stock was persls'en'iS
- -. a net advance Of 2 points onorls
- oorared did so at loss Shorts WIN u
-. o,,or NAV he compelled to pay ruilou'
=, ,soro thev are able TO get out ol 'Ne'
on.racts Unless the Brooklyn s'rihe ue ~
,nexnected strength. there appears h'''o
Co. thu shorts in Transit stock ana a. -,
Ter Of fact 1t is not expected ina '' =,
will register any noteworthy ueoN"0 .ho
b shou,d not be settled as soon as the
management of the company oeHe'eS - .,.I
-. s+oct 10 we'll held by prominent nnanc'o'
Interests. who may not be a'erse' - =. .h.
.-,,oro ~ The street. "to twist the talls oi ''e
outside Of Brooklyn Rapid transit
~ eHO 1,eing a I'd a few Of the more important
-, ,ssuas the days dealings were eAceS-
-. AL, ord lighter than on any day IN many
.ns All outside developments. sucn as rai'
-, oo~,ines and crop reports, were IN laVoi
', I,hor nrices In the last hour the haihe
.~h,hitad considerable strength cioslne ",H
tn rrica changes about equally dlsrlou''u "
tween small net gains and LOSSES
rho fart that money rates are ruhns d.
,o,,ol which in some circles is conslueleu ne
has suggested TO many minds the po a.
20 = aacline in stocks based upon possloie us
,,osition on the part of holders ol se0ui
cell norton of their possessions III Vi
ar,n,ov their money TO better advaH'aee IA ~
~ o,,a+ II cannot be denied that IN poIh
- - tho money market the opportunity
49,. ,roetable use Of capital is attractive
a.. ,oonev will be needed to satisfy the ue-
.~o,ds for accommodation in commercial anu
.,,,octurine circles incident to growing pusi
noes exransion and It may come 10 pass 'D"'
cornorations and individuals with large secuii.'
holdings will sell some of their STOCKS anu oo"u'
and use the proceeds in making ioanS mo-,
~ the high priced bonds could DE soi" anu
~ ,-,one1, from their sale be better employed
in loans as the current rate IN oo'n co-i 't ,s
,,r,a finds makes a larger return than the yield
of many of the fancy priced mortgage iS"ue'
shat have steadily advanced for the last year,
= uiI1 ba merely a. business move OF financial
,rstitut,ons that hold heavy supplies OF low IN
.ores+ y,ielding bonds to change the investment
ond not an indication of uneasiness over the
actual value of the securities in question Bonus
have enioyed an almost uninterrupted aoVdnce'
and the falling off in dealings or late may re-
fleet unwillingness on the part OF capltal 10 ouS
mortgage issues when it can be more prontaoiy
used in the money market.
The situation outlined is an interesting one
and II is worth watching. If the hlgh CLASS
bonds are selling too high, and If capital moves
for a time into the loan market instead OF INTO
the hond market the chances are that the mort
gage issues that are selling above the level war
ranted by money market conditions VIII move
toward a lower range. and as a consequence
high nriced stocks will move with them. STOCKS
and bonds which, owing to their high price re-
turn but a. small investment yield could decline
without injurng the underlying strength OF the
stock market and selling of these issues would
furnish a greater supply of funds available for
use in speculative operations Low priced issues
are not likely sell lower. but. on the con-
trary. all chances favor higher price for near
~ every low priced stock on the list. The mar
ket Of the last year. and more particularly Of
the last six months has been a market Of high
priced issues. The cheap stocks so called are. in
the greater number of cases. selling under their
actual worth. Many valuable equities exist in
these securities. and they are increasing in value
every day The active features in the specu
laton Of the near future ought TO be found in
the low priced stocks of merit