Omaha daily bee., 1899-11-05

plausible argument loses It's force in face
OF events like those OF the week.
On Tuesday the money market had de-
veloped a condition of severe stringcncy,
the call loan rate amounting to 30 per cent
and large amounts being sought at the high
interest rates. At the same time London
In the first alarm over the disaster at Lady
smith, threw upon this market nearly 5O,
900 shares OF various stocks Nevertheless
on that day the opening prices were gen
orally the lowest and seemed to be made to
avoid offering foreign sellers too good
bargain as much as for any other cause
The recuperation In prices during the re-
mainder Of the day was marked. The bears
accepted the admontion and proceeded to
cover. Their efforts were met by opposing
factions which pa Up prices where they
suit was some violent recoveries in some
of the industrials which have been most
vulnerable to recent attacks, 1t was equally
evident that, with the short interest salts
fed, the tendency In the same stocks be-
came reactionary again. The conspicuous
tendency of the later trading of the week
was TO take up low-priced non-divdend
paying stocks hitherto unexpected in an
active speculation. Dealings in some few
of these have been on an enormous scale.
In the standard dividend paying railroad
stocks there have been little trading. The
impression has been created that the gem
eral policy of the great railroads is to be
the continued Investment of surplus and in
putting the roadways on a more substan-
with view to increased economy of
operation. This is the conservative note of
preparation or the great lnanCial entities,
whose interests are permanent and con-
tinuing against the period of reaction from
present prosperity, which all believe to be
eventually inevitable. Conspicuous ex-
amples of this tendency are seen in the
New York Centrals extra stock issue to
provide extensive new. equipment. and in
the St Pauls continued heavy outlay from
current earnings for operating expenses.
The chairman of st. Paul's directors says
signihcantly
I'VE are spending a great deal of money
for betterments. for which the cost con-
stantly increases. The money for the i'm
surprising that our net earnings should be
materially reduced"
The same policy manifest throughout
to some of the great industrial comblna-
tions. This work Is more advanced In the
case of some railroads which have passed
through bankruptcy and reorganization
than in that of railroads which paid con-
tinuous dividends The extreme stringency
of the money market during the early part
of the week has relaxed with the redistri-
button of some of the November rcm-
The Interior demand for
The unsolved question which most interests
Wall street is whether the refiuX of funds
which is usual after the crop movement is
year there is to be considered the enormous
expansion In interior business as reflected
in bank clearings the lack of relief from
gold imports this year and the absorption
of funds by the United States treasury in
the taking up of surplus revenues, as
/
market last year in the disbursement of
the governments deficit.
Business in bonds has been on a large
scale, especially in some lower grade
advanced. United states Is, the ss and neI, new,
IS. coupon, and old As !. in the bid price
The Commercial Advertisers London
financial cablegram says: There was very
today, owing to the absence of news from
the Transvaal: Americans were dull and
STATIONARY. Spanish b As were Ss9s, Tintos
tons 5-16. Money was very plentiful, being
kept in hand for the impending, issue Of
to be ef pad on the 18th inst 'ne
For, the first time since the, panic of 1893
the clearing house banks of New York City
s3ss, $50 The deficit is due to the heavy
withdrawals in cash, contraction in loans
| lower requirements ito the proper figure,
| The statement is further complicated by
the addition of q. new bank, the Hide and
In order to get at the real changes for
proper comparison it is necessary to offset
| is done 1t appears that the loss of the regu-
lar members has been s26l9 100 in loans,
81; 800, 800 in deposits and S,259, 200 In cash,
which puts new meaning on the exhibit as
a whole. A great deal of surprise. was eX-
! pressed; the statement appearing that loans
had fallen off less. than S20OOOO, as published
! in the total, and in explanation the expand
ing business on the Stock exchange was
cited. Speculation has been much more ac-
| tive of late and little, II any, contraction
! on loans was looked for. 1t seems. however,
| that loans really have been reduced over
/ $2,500,OO0, which eliminates what otherwise
must be regarded as a discrepancy. The
known operations of the week, so far as
cash changes are concerned, do not differ
much from the bank reports. There was a
loss of over 100000 to the interior and
! nearly as much to the treasury. The No
vember dividend period was responsible for
some unsettlng of business. The future OF
the market hinges now on the continuance
Of the interior demand. At this time last
year money had begun to return to New
York, but up to the present the outgo much
exceeds the receipts. 1t is worthy of note
that the domestic exchange at leading CEN
ters is changing slowly in favor of New
York funds on this city being quoted at par
in Chicago for the first time s!nce last
spring But this cannot be taken to signify
that money Is about to come east for
money rates in Chicago show signs of ad-
vance The weak point in the present s!tua-
| ton is the continued absorption of funds
from the banks into the treasury, an opera
| ton that takes funds out of the market
quite as effectively as an export of specie
! to Euro.e.
leading stocks on the New York exchange