The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-09-17
THE WORLDS MARKETS
Daily Record of Commercial and
Financial Transactions.
NEW YORK STOCK REPORT
Digest OF Exchange News-Mining Stocks
Metal Quotations-Wool Prices and
Movements-Grain and Pro-
duce-Review OF Trade.

New York, Sept. 1.-THE appearance of
| the bank statement effectually dispersed
! all the encouraging illusions that specu-
| lative holders of securities have been in
| dulging in for several days past, and
threw the market into decentralization.
| Prices were offered down by punges, and
! very heavy blocks were liquidated appar-
| emily for whatever they would bring. The
| local traction stocks were a special mark,
seemingly on the theory that they had
| not responded adequately in sympathy
with Brooklyn Transit.
Metropolitan Street Railway slumped an
extreme 141a points, and Manhattan 9.
Brooklyn Transit itself was somewhat re-
| lieved from the severe pressure and held
firmly at IS or above through most of
the storm in the late market The other
Flower stocks were fiercely attacked.
Peoples Gas dropped nearly 4, Rock Isl
and "a and Federal Steel III, Sugar fell
an extreme ~ and Tobacco 3A Losses
elsewhere in the specialties extended be-
tween and 4 points in numerous cases.
ST. Paul suffered from continued iiquida-
ton, even before the last break. and after
the bank statement appeared it dropped
an extreme IA, to Us. Many railroad
stocks fell a point or over. The violent
by the bears, which caused feverish raj
lies. In Metropolitan the rally reached
over points. But the tone Of the specu-
lation at the closing was completely de-
moralized and prices in many cases were
still being offered down rapidly in the
frantic efforts of holders to unload. The
| losses in cash by the banks for the week
were over 81, 00O, 900 less than had been
foreshadowed by the known movements,
but on the other hand a contraction in
loans had been expected to reach as high
as So, 900, 900, according to some estimates.
As the returns showed reduction of
only $7,s45, 400 in loans. the net result
brought the surplus reserves down to
about a quarter of million dollars of the
legal requirement. Stocks held on mar
gin and with borrowed money have been
forced to sale in large volume during the
week, with resulting raids on the market
prices reaching considerable figure in
some cases, last Saturdays bank state
ment showing reserves of a number of
the clearing house institutions already be-
low their legal limit. making it certain
that there would be loan contraction. and
the bears were eager to anticipate the
| selling which was in prospect. Rates for
call loans were marked up on Monday and
Tuesday by reason of the eager bidding
of the woufd-be borrowers. who We're
seeking to Shift loans which had been
called The volume of liquidation indi-
able to get accommodations, even at the
high level The bears sold so indscrim-
inately that their endeavor to cover short
contracts worked sharp rally on
Wednesday, when the banks ceased to
call in loans and the pressure of forced
liquidation was relaxed. But when the
demand from the shorts was satisfied the
market fell again. the reactionary ten
dency being emphasized by the refusal Of
the st. Paul directors to extend the dis
bursement OF the large surplus earnings
OF the year beyond the regular dividend
rate.
The decision was calculated to have the
more effect on the railroad stock. since
many stocks have been lifted on specul-
tive buying based on expectation of in
creased dividends. Few of these stocks
can show as large a surplus of current
earnings as st. Paul. and many are in
far more urgent need of expenditures on
structure and equipment in order to in
crease the operating efficiency. The an
nual report of nearly every important
railroad that comes to hand contains the
same story of diminishing rates for trans
portation. Ton mile revenue was never
so low before, and 1t still declining, and
the further reductions in ton mile cost of
operation thus made necessary is only to
be achieved by enormous outlays of capt.
tai on improving roadbeds or track equip
ment and structures, cutting down OF
rving of heavier train loads etc. The re-
alizaton of the money stringency after
the banks had reduced their liabilities
on account of loans. led to an optimistic
| mid-week view of the money outlook
which, however, was not long maintained
A somewhat aggravated effect was pro-
duced on sentiment by the decision of
the treasury department. to anticipate nav
ment of October LIST interest on govern
ment bonds Last years experience in a
similar period of the stock market need
of money demonstrated that holders of
government bonds were not inclined to
avail themselves of the offered privilege.
The relief at best. would be small and
is not Immediately available. With con-
tinued demand for cash in sight. both
from the treasury and from interior
money centers, no source of replenish-
ment is discernible. Bankers in fact
express themselves s well content with
the existing rate for money and are not
disposed to seek means for the relief of
speculative borrowers. They hold the
view that check on undue speculation
and A wedding out of weak speculative
accounts makes for the safety of the
financial fabric. The causes of the firm
ness of sterling exchange with money
rates In New York so far above the Lon
don level, and supposed credit balance
in our favor of many millions does not
find very adequate explanation. There
are said to have been large receipts from
abroad of securities, but selling of them
has been in evidence through the regular
agencies. Foreign houses in New York
have lent money here during the week
The purpose may be TO ease the money
rate and so defer the pressure on London
gold until the Transvaal crisis has re-
solved itself in some way.
Bonds moved in sympathy with stocks,
but not as widely L. S. As advanced y
in the bid price.
New York Closing Stocks.
Atchison ........ NEUTRALITY-SUSPICIOUS.. POS
10