The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-12-22
FINANCIAL AND COMMERCIAL
THURSDAY. Dec. 81.

THURSDAY. Dec. 81.
The local situation appeared to be more COM
Portable to-day than at any time since the de-
cline in the prices OF securities became acute.
Liquidation OF speculative holdings OF stocks.
the moderate return flow OF money from the
interior and the adoption OF plan by the Treas
ury to prevent the accumulation OF money In It's
vaults have resulted in fairly easy money
market. The ruling rate ON call to-day was
per cent. and considerable amounts were lent
below that rate. Notwithstanding this favor
able development the stock market was heRy
and at times weak.
There are two explanations OF this condition
One In the usual closing OF weak accounts and
loans after q panic like that OF last Monday
The other is found in the condition OF tho Eu-
ropean money markets. The Bank OF
England did not raise its minimum rate
OF discount to-day because II was adj
vissd that at least S5.0OO.O0O gold Will be
shipped to London from this centre on Satur-
day in response to the inducements the Bank
Is making to attract the metal. Even with
those inducements. the profit on the ship
ments will be very small. As matter OF fact
tho transactions are made largely at the
instance OF the London correspondents OF the
bankers who ship tho gold and are made for
the purpose OF relieving the situation abroad
The decision OF the Bank OF England not to
raise It's rate was Offset In the foreign security
markets by the advance OF one-halfa cent IN its
rate OF discount by the Bank OF France. That
action was dou btleas taken to prevent the trans
fer OF gold from Paris to London. The London
market for securities was weak all day
and foreign arbitraRe houses sold about
thlrty-ave thousand shares OF the inter-
nationally listed stocks. Cable adv!ces
are that two or three London Stock
Exchange houses have been weakened
by the decline in prices and are liauidating.
Fears OF fresh military reverses In South Africa
also depressed the London market. All OF
these circumstances were not only reflected
here. but were utilized by an extremely con-
fldant bear party to further depress prices.
That there was considerable local liQuda-
tlon cannot be denied. but 1t was upon COM
paratively small scale. and did not warrant the
circulation Of a number OF distressing rumors
that became current during the afternoon.
When either party to the speculation begins to
appeal to the mag nation OF the Street by
the circulation OF purely stock -iobblng rumors.
II is q pretty safe conclusion that II is running
short OF substantial ammunition. This is ap-
parently what happened to-day. That the mar
ket will be feverish and unsettled for some days
to come IL natural; at the same time tho sup
port that will steady II Is coming to hand
in the shape OF substantial buying. and
the absorption OF securities by capitalists
outside OF Wall Street The fact should not
be overlooked that over SlO0.000.O0O will be
distributed In dividends and interest ut the
beginning OF the year and that much o, It will
seek investment. Moreover II money should
rule at @ per cent. or a little lower. there Ia
likely TO be a readjustment Of values as CON-
xvt hay haa