The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-12-15
FINANCIAL AVID COMMERCIAL
THURSDAY. Dec. II.

THURSDAY. Dec. II.
Conflicting Influences resulted to-day in
stock market Of extraordinary irreRularity
The liuuidating movement that was resumed
yesterday after pause on Tuesday. and
which had gained great momentum at the
close OF business. was continued to-day II
was not reasonable to suppose that 1t would
end abruptly no matter how favor
able tho news affecting values might be.
As matter OF fact the speculative community
did not EXPECT good news this morning but
was prepared. so far as It could be. for unfavor-
able developments. such as an advance In the
Bank OF England rate Of discount exports OF
specie and possible local defaults.
The Bank OF England did not raise its mini
mum rate OF discount and the London market
for securities. Influenced to an extent by that
circumstance. but more effectively by reports
that the Siege OF Ladysmth had been raised
and also by prospects that gold would be re-
ceived from this side. was fairly buoyant when
business was resumed on the Stock Exchange
here. Foreign arbitrage dealers began to buy
upon an extensive scale and by doing so i'm
parted a feeling Of confidence to many OF the
professional traiers. The opening rally thus
brought about did not hold owing TO
tho execution OF selling orders that had ac-
cumulated over night and tho evident
eIiRencies OF certain speculative interests
Sugar Refining. the tobacco stocks and the
local traction issues broke badly and carried
tho remainder Of the listdown with them.
Then came the news that the Secretary
OF the Treasury had decided to anticl-
pate without rebate the $5.50O000 OF In
terest upon the Government debt due jan
]. It also became apparent that money
was working easier in consequence OF tho
extensive liquidation and because OF the re-
nj Of ,tr uryf rop Canada aud from IA
interior. At the same time the foreign er-
change market began to yield under tho Lon
don buying OF stocks.
Although there was no official confirmation
OF tho reports OF great British victory in
South Africa. London continued to take stocks
up to the close OF business and bought in the
aggregate fully 10000 shares. The opera
tions OF the foreign arbitrage houses were in
terrupted for a time during the middle OF the
day by the impairment of the English land
line telegraph service by storm. otherwise It is
estimated that London would have bought at
least 100000 shares. Its purchases lowered
tho rate for sight sterling "a cent 10
s4S7h. and this led some persons TO
believe that no gold Is likely to DO
exported In the near future. As matter
OF fact the decline IN sterling was more than
Offset by the advance IN the Bank OF England
price for American gold coin aud Its offer TO
hHOW interest on specie In transit. Inc price
OF bar gold was also higher in London.
Without doubt London expects TO obtain
some gold from this country before the end OF
the year The money market there has al
ready begun TO attract gold from the CONT
nent Just as the rates here are bringing IL
from Canada and currency from the In
terror. II the transfer OF few millions
OF gold from this centre to London
win relieve the situation there the sooner II is
sent the better. That our bankers are figuring
upon sending II there is no doubt. and they are
probably counting upon continuation of a
businesslike policy by the Treasury in making
their preparations for the transaction. The New
York and the London money markets have
become so closely allied that the transfer
OF a few millions from one to the other
should cause no apprehension in the present
condition OF our currency and finances. par
ticularly as the transfer would be really In
the nature OF a loan.
The only confession OF weakness since the
protracted liquidation began came to-day
from Boston and It was prom pity taken In hand
by tho Clearing House banks OF that city
Incidental to the embarrassment OF the
Globe National Bank. large block OF
securities have been transferred from
weakened and venturesome holders 10
stronger hands. To what extent speculative
congestion has been relieved In other quarters
by the recent sharp decline in prices IL Is i'm
possible TO estimate. but IL can safely be as
sumed that a much healthier condition of az
fairs exists than prevailed week or so ago |
IL Is possible that the embarrassment in
Boston may result In tho withdrawal OF some
cash from this city. as the Boston banks have
in the aggregate large balances here. 1t is to
be noted. however. that considerable amounts
OF currency were shipped to that centre to-day
without disturb ing the local money market