New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-10-08
financial.
The Financial World

scarcely differed from the cosp, mi,
week before, and that duliness ,,,s ,to t...,-
feature from Monday 10 SATURDAY T,yo.o~,t
stocks differ By more than fractions fro.
week ago. as Louisville. Brooklyn. and :, pa,
but the general list shows changes too irs,,rie
cant for notice. II still holds good apnare,.,
that that liquidation could be forced on ,ho
then condition Of the market. vas brought abo,,
when Brooklyn had its fall into tho 10s TIL,
the state OF the money market viii force an
other lot OF liquidation soon. seems ainos,
certainty but one Is not inclined 10 tx the era,,
minute when this liquidation is 70 star,
The peculiarites ~ speculative movement.
we'll illustrated in this that the narke, w..
remained steady 70 strong during the past poo.
IN the face OF many things calculated 10 send
it down. while II quite seriously shaken two
weeks before simply through the sudden Fall ~,
one highly speculative stock The shake tho
market then got dlslodged all the stock which
was in position 10 be dlslodgod f. also estah
l!shed a somewhat lower level for prices and
from this lower level the money strngency
the first symptom Of which was the fall In
Brooklyn--has not been sufficiently severe n
effect another disodgment
Nearly the same thing has appeared IN TIE
London market. where the double raising y The
Bank rate in one week has been followed by A
stifsening in stock prices, the reason cling that
preliminary pressure had shaken out loosely
held stock, ana also created a considerable short
interest which was covered on the temporary
cor lson caused by action Of the Bank
The outlook is FOR continuance ~ high
mcney rates Yesterdays bank statement lis.
sipated the illusion that any material change
for the better was going 4 be made by the
ton Some brought. o. course. hut more
went out TO the country % meet Do v8nts o.,
trade The net result is that the banks are
again close down . the legal ls..t of rsserye
which points TO more calling e loans ,l- ON
inc week The incoming OF TIL S2DYoUoo Z
gold whose engagement has been previously
noted. viii contribute some degree of relief
80 more engagements o. gold have te.a
made: but. on tie contrary. exchares rates
have advanced despite the high Interest rates
here. This means II course. that money IS
getting dearer all over tn commercial World
We're it not so. the high prices made for money
re the past two weeks. would have brought
in ample supplies from abroad. in fact such
rates could not have been made. as th- gold
gagements would have been large before rates
reached the point they did
The causes Of the increasing dearness u money
throughout the world arc not single. but many
And one may stop n moment here - note the
absurdty ~ the stories about conspiracy %
make money dear about manipulation o. rates
and about calling on the stock Exchange au-
thorites to investigate the conspiracy. Any one
IS free 10 lend money on the stock Exchange az
any rates he chooses 70 offer or can get Noue
Of those precise rules which govern the purchase
and sale Of stocks have been made In respect
to lending and borrowing money, for o. good
reason that while experience has shown them
TO be necessary in the one case. 1t has NOT shown
! them 70 be necessary in the other. There was
much outcry because Mr.. rockingham insisted
on d rate as high as 40 per cent FOR money h
! had % loan. Mr. Frothingham was lending the
money OF clients. under instructions 20 lend Il
| % the best advantage. he not only had a right
10 ask 40 per cent but it was his duty - his
clients to do He was IN the same position
as the broker who should receive an order from
a client to sell say. 1000 ST Paul at the best
price he could get. 1t would be a peculiar
broker who should take less than the best he
/ could get. because. Of conscientious objections.
/ Other brokers cane in from lime 10 time a. /
loaned money at s per cent when borrowers
were Offering l. and 20. This It was also their
/ right 10 dot being well understood that such
offerings were made because the speculative
position Of the clients was favored by breaking
/ down the rates as far as possible. Then again.
! some Of the 40 per cent borrowers had mighty
moor collateral TO offer. 4 story is current thar
/ one Of these borrowers who was referred 70 a
! prominent foreign house for his money, sent IN
such a horrible lot Of cats and dogs that TIE
! loan clerk was like 10 faint when tho envelope
was handed in AZ the window.
II would he hardly worth while 20 notice thess
preposterous conspiracy and manipulation sto'
ries. were it not that they had attained The Dig
nifty Of being cabled to London. and become me
subject Of editorial comment there. one would
suppose that the state Of the London money
market itself would have been sufficient enliga'-
| enmeut upon the causes of high money mere
The disqu!eting feature here is the slow making
~ exchange-that IS, the failure Of bills against
exports to come into the market az this time u
the quantity expected 4 leading banker saii
the other day that this to him, WAS really me
only thing I'm the situation which caused nm
uneasiness He thought il was I'm measure que
10 the slow forward movement Of the cotton eI0'
a crop. by the way, which he feared would b
short II has also been suggested hy others
that n considerable part Of the demand ior e'
change here comes from the necessity 20 fe'"'
IN London the proceeds Of the Mexican Govern
ment loan.
Though prices generally were noted above
substantially the same at the close Yesterday
as they were the week before. yet there "a'
some mid-week movement 20 the market sugar
took five point dip. recovered IT, ana aS''"
seems going back. Tobacco vas weak io'
while. then went up again higher than ns'o'e
| Louisville is the favorite Of some Of me la'S,
room traders and has been put up coup.
points since Thursday. In the fractions '''
haitian had some small upward and a'"N"S.0
movements of no consequence eXcrp' ~ 81"
small traders Brooklyn WAS rather ''''f
nointment in that It failed 20 sho" the s'rs"s'"
exnected from the new buying tn H. me 'S','
was undoubtedly the September Statement
which showed the road 10 bee not more '"'"
holding its own as compared with ias' w.