The Atlanta constitution., 1900-07-30

Bull Campaign Did Not Encourage
Outside Demand.

New York. July 26-The bull interest In
early In the week that their campaign while
easily successful in advancing prices. was
entirely abortive In reaching any outside de-
n and for stocks. II was Easy To bid up prices,
as there was no large selling of stocks. but
there was practically demand outside the
ed to sell prices quickly broke back to where
the professional buying had started them Inc
decline was even easier than the advance. for
the buying by shorts who were forced 10 cover
ON the advance was no longer an element .
The inertness OF the market on any rally
showed that the bears have put out only scanty
fresh short lines. With the short interests les
sened and the long interest, which has been
unable TO secure profits Increased, tho technl-
cal condition OF the market is distinctly weak
ened- The Spectators who undertook TO leai
bull movement could not have been blind
TO the elements Of uncertainty in the outlook.
But they argued that money on call was easy
now. whatever the more distant prospect might
be. and that period OF quiet was sure TO IN
teryene In political affairs between the ma
t.onal conventions and the opening of the cam
paien- Since the professional attempt TO ad-
vance prices has been abandoned they nave
s..ttl.d back to a lower level on a diminishing
scale OF activity which has progressed near
TO stagnatiOn. Only those stocks among the
specialties which have been Influenced by IN
dividual causes have shown any considerable
signs of life. The growing conviction that a
period Of money stringency Is not improbable
has tsen the potent influence In checking
speculation for rise. The prevailing ease
of call loans IS really a reflection of this
ursasiness over the money outlook. ana
shows the desire of lenders to keep their funds
I'm ready accessible form, more than n super
abundance OF capital. Cheap call money nat
uraIly invites 60 speculation and even TO n
ISeudo-inveStment with borrowed money In
stocks whose dividend leaves a margin of profit
the interest rate. But market I'm which
such holdings are numerous is peculiarly vul-
nerable 60 a squeeze I'm the money market
which inevitably forces liquidation I'm n weak
market IL is evident that the speculative
holdings OF stocks I'm New York are at present
with repeated trials. to disloige offerings by
rsiding down prices. The same must be true
Of commodities Of all kinds the lengthening
period OF reaction In prices has undoubtedly
led To general liquidation Of speculative hold
ings. that prices may he said To be a normal
index OF actual supply and demand These con
d.t;ons induce n comfortable assurance Of the
eoundneSs OF the situation and the nrInness
with which stocks are held. The well-recog-
rized law that commercial crises come with
sudden contraction OF credits which have gone
TO the speculative imitation OF prices is pretty
clearly seen not 10 spply 70 the present situa-
ucn- The conservative purpose TO avoid weak
ening the situation Is seen I'm the determined
unwillngness of the -ublic TO embark In
srecistion In stocks. Trade Is not lacking in
elements ~ uncertainty In the domestic situ-
attic n. such the stiil unmatured crops, the
future level Of net earnings for railroads and
the basis Of final adjustment of the widely
r. mified iron and steel trade. IL is pretty GER
tain also that the vicissitudes Of the presi-
DENTAL campaign will cause unsetflement Of
business ana "f speculative sentiment. But
these great uncertainties have shifted for the
present TO China. In which the whole world OF
capital is watching with n growing sense Of
the big possibilities for mischief lyins behind
the veil Of mystery. Even within its present
scope trouble there insures sufficient demand
Upon the worlds money markets for war
leans 20 materially affect their resources The
policy inaugurated by the Bank OF England
last week OF raising its discount rate and
lifting the outside discount rate to it's level
by borrowing from the market. has been of-
f-c;ire In turning the internal exchanges of
the world In favor Of London. The Paris rate
for sterl0lg has reacted in the latter part OF
tie week. causing some renewed question
whether gold from New York will go next TO
Paris or To London. But that a large demand
for gold remaiis to Re satisfied. and that IL Is
to lie mostly met by the supplies inthe United
States. because they are most abundant and
most easily spared. IS the conviction Of the
financial world Speculation halts 20 dis
tinguish the effects of this operation.