The sun., 1899-12-12
FINANCIAL AND COMMERCIAL

MONDAY. Dec. IL.
The stock market experienced to-day one OF
those spasms OF violent liquidation that not In
frequently mark the elimination OF a pro-
tracted declining tendency. 1t was most acute
IN the Industrial stocks; in fact, It was
very nearly confined to them. The SELL
ing OF railway shares may bo described
as largely sympathetic. In some cases
they were doubtless sold to protect speculative
holdings OF industrial stocks or to make good
losses sustained In them. The selling move
ment was to an extent the continuation Of the
liquidation that was In progress at the end OF
last week but fresh impetus was impaired to
IL BY the disaster experienced by the British
forces In South Africa. That occurrence did
not directly influence prices on tho London
Stock Exchange. but II caused an advance In
the private rate OF discount In London to q per
cent and that in turn practically stined specu-
lation there.
Higher rates for money abroad at once sug-
Rested the possibility that they might even-
tually attract gold from this country. We have
the largest available supply Of gold OF any
civilized nation and rs q rule Europe has here
tofore found this the cheapest market In which
to procure gold whenever It has been needed
abroad. 1t was this possibility Of a contraction
Of the basis OF credits that started fresh liqui-
dation in stocks this morning and also resulted
usual, intensified the liquidation. 1t also held
the advancing tendency OF tho foreign cI-
change market in check. II mry be noted that
sight sterling Ia now only about y cents
pound below the figure at which Europe
might draw gold from this side. namely.
S4SSS.
The big breaks In prices In the early dealings
were In Sugar Refining. American Tobacco.
Tennessee Coal and Iron and the local trac-
ton stocks. particularly Brooklyn Rapid Tran
sit. The heaviest dealings were In Sugar Renn-
ing which sold ex the quarterly dividend
OF 3 per cent. while the greatest maximum
decline was that OF 81 points In Tennessee Coal
and Iron. Indications were not wanting
that In all OF these stocks there had been ex-
tensive buying on paper profits and that
brokers had exacted many stop loss orders as
q means OF protecting themselves
Asi 10 usually the case on such sharp break
as that OF to-day shrewd and patient bears
closed many OF their long standing contracts.
There was also good deal OF buying OF a more
substantial character: that 10. by capitalists
who hold themselves In readiness to take ad-
vantage OF extraordinary declines In security
values. These circumstances. together with tho
relief obtained by the Street through liauida-
tion. contributed to u natural rally during the
last two hours OF business. Moreover as the high
rates for money on call had Influenced brokers
TO secure their accommo odations early In the
day. the market eased of toward the close
owing to the absence OF demand. Although
this easier condition was manitestly superficial
II had some effect upon the final speculation.
Sugar Refining was as conspicuous in the
rally as II has been In the decline and was one
OF the few stocks that closed materially higher
than on Saturday. Leather common was
again taken In hand and advanced nearly 2S
lfn- vaNt th.s sast. -
nearly all Of their early losses. At the clos.
the only really noteworthy net decline was that
OF 13 points in Tennessee Coal and Iron. The
feeling OF the Street after the close was that
the speculative situation had been much
improved by the days operations. though at
the expense Of many reckless and over sanguine
dealers on margin.