The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1899-09-18
FINANCE AND TRADE.
Tho Features Of tho Money and stocl
Markets.

tile paper 4&@6h per cent. Sterling
exchange steady, with actual business
in banksrn' bills at 81 S5&9l SO for
demand and 81 s2h9l SIX for sixty
days; posted rates a ssst64 81, and
81 S94 s7h. Commercial bills a s1M@
4 SO. Silver certificates 5s95sXc, Bar
silver Soc. Mexican dollars 47l4c.
State bonds inactive.
Railroad bonds weak.
The appearance of the bank state
ment eIectually dispersed all the en-
couraging illusions that speculative
holders Of securities have been indulg-
ing for several days past and threw
the market into decentralization. Prices
were offered down by plunges and very
heavy blocks were llquidated apparent
ly for whatever they would bring. The
local traction stocks were special
mark, seemingly on the theory that
they had not responded adequately in
sympathy with Brooklyn Transit. Net
ropOitan slumped an extreme 1ilA
points. and Manhattan 6. Brooklyn
Transit itself was somewhat relieved
from the recent severe pressure and
held firmly at So or above through most
OF the storm in the late market The
other Flower stocks were fiercely at
tackled. Peoples Gas dropping nearly
4. Rock Island az and Federal Steel
III. Sugar fell an extreme As, and To-
bacco 3%. Losses elsewhere In the
specialtles extended between and )
points In numerous cases st. Paul suf-
fered from continued liquidation even
before the late break and after the
HNuV vi uka RaH I Hpnnnnn n
extreme ~ to 1913. Many railroad
stocks fell point or over.
The violent declines invited the TAX
Ing Of some quick profits by the bears,
which caused feverlsh rallies, In Met
ropOlitnn the rally reached over three
points. But the tone Of the speculation
at the closing was completely demoral-
lied and prices In many cases were
still being offered down rapidly in the
frantic efforts OF holders to unload.
The losses in cash by the banks for
the week were over $4,000, 900 less than
had been foreshadowed by the known
movements, but on the other hand q
ontractlon in loans had been expected
TO reach as high as $25. 900. 900 according
to some estimates. AS the return
showed a reduction Of only $7,S54,400 in
loans, the net result brought the sur
plus reserves down to about one
fourth Of million dollars Of the legal
requirement.
Stocks held on margin and with bor-
rowed money have been forced to sale
in large volume during the week with
resulting inroads upon market prices,
reaching a considerable figure in some
cases. Last Saturdays bank state
ment showing reserves. Of q ypumber OF
the clearing house institutions already
below their legal limit. made II certain
that there would be loan contraction
and the bears were enEer to anticipate
the selling which was In prospect.
Rates for call loans were marked up on
Monday and Tuesday by reason of the
enger bidding Of would-be borrowers,
who were seeking to shift loans which
had been called. The volume OF liqul-
dRtion indicated clearly enough that
many were unable TO get .accommoda-
tons even at the higher level. The
bears sold so lndustriouSly that their
demand to cover short contracts work.
ed a sharp rally on Wednesday, when
the banks ceased to call in loans and
the pressure Of forced liquidation was
But when the demand from
the shorts was satisfied the market fell
back again. The reRctionary. tendency
St Paul directors to extend the dis
bursement of the large surplus earn
lnRs OF the year beyond the regular
dividend rate. The decision was calcu-
lated to have the more effect on the
railroad stocks since many stocks have
been lifted on speculative buying,
based on expectation Of increased dlvi-
dends Few Of these stocks can Show
as large a surplus OF current earnings
as st. Paul and many are In far more
urgent need OF expenditures on struc-
ture and equipment in order to Increase
the operating efficiency. The annual
report of nearly every important rail-
road that comes to hand contains the
same story Of diminishing rates for
transportation.
Ton.mile revenue was never so low
before and Is still declining and the
further reductions in ton-mile cost OF
operation. thus made necessary Is only
to be achieved by enormous OUTLAWS OF
capital for improving road beds and
tracks equipment and structures. cut
ting down Of grades so as to make pos.
sible the carrying Of heavier train
loads,
The relaxation OF the money strln-
gency after the banks had reduced their
liabilities on account Of loaRs led to an
optimistic midweek view OF the money
outlook, which, however, was not long
maintained. A somewhat exaggerated
effect was produced on sentiment by
the decision Of the treasury department
to anticipate the payment Of October
first interest on government bonds,
Last years experience In n similar
period OF stock market need OF money
demonstrated that holders Of govern
ment bonds were not inclined TO avail
themselves Of the offered privilege. The
relief, ut best, would be small and il
not Immediately available. With
continued demand for cash In sight,
both from the treasury and from inter-
Tor money centres, no source Of replen-
Ishment ls dlscernabe. Bankers, in
fact. express themselves ms well con-
tented with the existing rate for mo-
ney and are not disposed to seek means
for the relief OF speculative borrowers
They hold the view that n check on
undue speculation and a wedding ont
OF weak speculative accounts makes
for the safety OF the financial fabric
The causes Of the firmness Of sterling
exchange with money rates In New
York far above the London level and
supposed credit balance In our favor Of
many millions, does not find very ade-
quato explanation. There II said to
have been large receipts from abroad OF
American securities. but selling from
that source has not been In evidence
through the regular agencies. Foreign
houses in New York have lent money
here during the week. The purpose
may be TO ease the money rate and 30
defer the pressure on London for gold
until the Trnnsvnnl crisis has resolved
itself In some way. The movement OF
cotton is backward and short sellers or
qterlfng against expected cotton bills
have kept up the exchange rnte with
demand to cover. These cnuseR can
operatc only temporarily to keep up