New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-06-23
BONDS.
THE DAYS OPERATIONS IN STOCKS.

After firm opening the stock market sold off
D IN response to bear pressure and liquidation.
Brooklyn Rapid Transit was vigorously at
tackled by the trading element and before the
close It made maximum decline of 61k points.
ending at 4 net loss OF points. There is moth
ing IN the actual condition of the Brooklyn
Rapid Transit Company that warrants bearish-
ness the stock. and purchases at the cur
rent level and all reactions will not repre-
sent stock Of a bankrupt corporation. The
traffic possibilities in Brooklyn are not realized
by Wall Street bears. and. as a dividend
Brooklyn Rapid Transit will not be paid at
once. the stock has become the bears favorite-
a favOrite. however, that may prove an ex-
pensive luxury for the people who expect that II
will always be a profitable short sale. Brook
iyn Rapid Transit's weakness encouraged bear
operations throughout the list while further ad-
verse crop reports from Chicago experts"
helped the decline With a big wheat crop in
the southern section of the grain territory as
sured decrease in the yield in the Northwest
VIII not be such calamity as stock market
spectators are trying to make people believe
ii Will be, especially as the farmers will get
high prices for their wheat IN all parts of the
country. Wall Street solicItude over Sc money
part Of the crop situation is wasted. The In
uustrial shares were all lower and in the rail
road list Northern Pacific and Missouri Pacific
We're weak features under bea, pressure and
liquidation. The market closed weak and IN
settled.
The banks apparently have not lost enough
money IN the week TO cause a further falling off
in cash and surplus holdings, and unless loans
have experienced heavy expansion again there
Will be no decline in surplus. 1t is generally
understood that part Of the large increase in
loans in the last few weeks represents borrow
ang by houses that anticipating future
needs. The impression is growing that money
rates will be higher in the fall and, perhaps be-
fore fall. and it is quite natural therefore, that
advantage is being taken of current easy rates
TO supply late summer and autumn require
ments The possibility of an active demand for
money at higher rates has doubtless induced
some liquidation in stocks by people who intend
&c employ their funds in the money market
and who expect TO buy back their securities at
lower prices. Sales Of good securities may be
justified the ground that higher rates for
money Will make investments in the loan mar
llet more profitable than the return on stocks
but the ordinary investor IS not interested in
rThis kind Of financiering. and for him there is
no reasonable excuse for getting out OF secur-
aties at the current level. Activity among the
bears and extreme confidence on their part have
Influenced many prospective buyers to keep out
Of the market, the theory that bear aggres-
SIGN and the course Of home and foreign politics
will bring about q cheaper level Of values. Some
operators who are waiting for lower prices go so
far as TO say that bargains gooc as those
that prevailed in the political campaign of 1896
ain be made this year. If railroads suspend
dividends and bankruptcy sets in slch prices
VIII be seen! Wall Street is thinking too much
about things that will never happen.