The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-06-17

NEW YORK June 1.-THE stock market ahan-
so long steadfsst and gave itself over to active
liquidation with all the appointments Of a state Of
alarm Two expected incidents were the cause OF
this change. First Of these the action Of the
directors Of the Northern Pacific after business
hours yesterday, in reducing the dividend on the
cred and weninformed decision from conservative
authorities that serious shortage in the wheat
crop in the Northwest was to be faced this year,
and that a period Of declining railroad earnings
TO be expected result Of this and the re-
action in general business. The effect was pro-
neunced on the stocks Of grsin-carrying roads. and
especially in the Northwest the rather numerous
groups 81 stocks which have risen in price on the
SCORE Of good earnings and hopes Of liberal dividend
disbursements The policy Of extreme conservatism
dividend disbursements adopted by the Northern
Pacific. IL was taken for granted. would have an
influence on other railroad directors. BY the end
of the first hour, what with the demand of shorts
10 cover and supporting orders by the friends Of diff
ferent stocks. the decline had been arrested and
the pressure II liquidation relaxed with rally in
prcies. This second phase began with a resumption
OF realizing in some stocks. and vas precipatsted
into scute weakness by the publication OF the bull
letn reporting the destruction OF the foreign lega
lions at Pehing and the killing Of the German min
lister there. This. though without official conrma-
ton. was accepted as throwing the Chinese situa-
ton into an acute stage. and the market. which
had been waiting in hopes OF peaceful and salts
factory solution Of that problem. threw stocks
in heavy volumes. After momentaty pause, when
shorts began to cover the decline was renewed
and the close was weak at the lowest
The movement q prices. in the stock exchange has
In the hands Of the room traders. who operate on
their own account, and generally closing
count before the day ends. taking their profits or
losses, as the case may be. The inertia Of the
ket, in face Of these professional operations Is
pretty good evidence that the level Of pyices has
reached the normal aud the resi- owners OF stocks
are holding them TO await definite develop
ments regarding the future.
The lassitude In the bond market Is especially
significant, in view of the present low interest
rates fer money. which almost invariably serves to
bnng an Investment in the bond market
The extremely conservative which Is being
pursued by the Bank Of France In increasing its
gold supply and largely reducing its obligations
causes increasing snrmises in the financial world
and keeps alive uneasiness over the Chinese compli
cation. Special Inducements offered BY this institu
ton drew the weeks shipments Of s. 500 900 in gold
from New York The renewal Of this foreign de-
mand for gold, coupled with tho calling uf govern
ment deposits from national banks into the treas
ury. has awakened vague questioning as to the
effect on our money market
The bond market has fully shared the duiiness OF
the stock market, and the movement Of prices has
not been important
United States new Is advanced and the s In
the bid price