The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-09-19
FINANCIAL AND COMMERCIAL
MONDAY, Sept. 10.

MONDAY, Sept. 1S.
Further liquidation OF speculative holdings
ofsecuritics that waa foreshadowed by Satur-
days bank statement took place on an ex-
tensive scale to-day. During the first hour or
two a business the selling was urgent in
nearly all OF the usually active stocks and pat
ticulary 40 In tho local traction issues. in tho
Iron and Steel shares. Sugar Refining, st. Paul
American Tobacco and Peoples Gas. There
was manfestly an accumulation OF selling or
ders In the hands OF brokers from out-of-town
clients who had become frightened or whose
margins had become practically exhausted.
Besides. the London market was demoralized
BY che South African war scare. and foreign ar
bitrnge houses sold between $4,000 and
10000 shares OF various stocks in this market
The advocates Of lower prices were aggressive
and by the vigor OF their attacks helped to un-
or~cr a good many stop orders. The execu-
tion OF those orders was largely responsible
for the extreme declines that were recorded.
The money market was watched with fever
fish interest all day. 1t was nctive owing to the
extensive shifting OF loans. and rates on call
ruled above tho legal figure still there was no
approach to actual strngency. While some
brokers with Indifferent collateral and others
whose standing with lenders Is not OF the best
paid aa high as and 10 per cont. for accom-
modations. tho ruling rate was per cent aud
good borrowers. that is strong houses with
high grade securities to hypothecate. found no
difficulty In securing what funds they wanted
at o per cent. The banks marked their loans
up to that rate. but made new loans and
lent their money late in the day at
the prevailing ratios. The money market to-
morrow should reflect the enormous li1uida-
ton that took place to-day. Treasury dis
bursements on account OF interest. that wore
begun to-day. NAV help to offset Treasury
absorption OF money from tho banks. From
San Francisco IL is reported that S2.O0O.O00
gold received from Alaska will be transferred
to this centre through the machinery OF the
Treasury Department. For the first time
since the money market became active the
comparatively high rates had decided effect
to-day upon the foreign exchange market.
Sight sterling was sold as low as 81 49, by one
OF the Lending drawers. The weakness In ex-
change was especially noteworthy because IL
was coincident with rather heavy sales OF
stocks by London.
As is always the case when prices on the Stock
Exchange break sharply. n new buying element
was attracted to the market. It's purchases.
together with the desire OF the short interest
to secure its profits. finally steadied and then
rallied the market. In many stocks the alter
noon recovery was almost as rapid as the early
decline. and In a few cases. notably in n. Y.
Central. Atchison preferred. Union Pacific pre-
ferred and Reading first preferred. the early
losses were more than recovered Throughout
the remainder Of the list the net losses wore
reduced TO l to % per cent. except In the case
OF Brooklyn Rap Transit. which closed nearly
eight points lower than on Saturday. Man
haitian Railway. which was second only to
Brooklyn Rapid Transit in respcct to activity.
was conspicuously srong in the rally. Metro
politnn Street Railway on the other hand. was
comparatively heavy throughout.
In view OF the decided change in local specu-
lative conditions that has taken place during
the last ten DAYS or two weeks. the street Is in
clincd to look for at least a temporary turn in |
the course OF the market. II Is argued with a |
good deal OF FEASIBILITY that according to pre- |
cedent n day OF extraordinary nctvty and |
violent fluctuations like this one tally marks |
the elimination OF n movement in prices
Whether that proves to be tho case or not. tho
fact remains that the decline has begun to Mt
tract actual buyers and also gone far enough
to discourage further short selling in some
quarters. At the same time the street has
reduced its liabilities very materially and the
banks are undoubtedly in somewhat better
position than they appeared to DO by Saturdays
statement. They will not. however. be in a
position to expand INSTRUMENTATION again
until they receive money from abroad or from
the interior. and it is not likely that that will
occur inside OF three or four weeks.
"