New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-03-06
BONDS.
THE DAYS OPERATIONS IN STOCKS.


Wall Street has been relieved of another I'M
certain factor namely, the Sugar Refining dvi-
dend Quite Unexpectedly the directors met
Yesterday forty-eght hours in advance of the
regular dividend day, and reduced the common
stock to a Il. per cent quarterly basis. The I'M
certainty the Sugar dividend has been
disturbing element for a long time, and its re-
moval from the field of speculative discussion,
together with the elimination of the Thiro
Avenue speculation, should serve to improve
the tone of stocks and kindle bull enthusiasm
in quarters where az present bull ideas are
wofully scarce General speculation in yester-
DAVIS market was conducted the same small
volume Of business that has been characteristic
of daily trading for a long time. Prices moved
within narrow limits. and ended the day at
small net changes. with more net gains than
losses Sugar Refining above and below
par. its chief movement taking place after the
dividend declaration. when it broke over 8
points Railroad stocks. while dull. were taken
by good class of buyers. but the industrials
were not in demand. The of Third Ave
nue. stock was without especial feature.
Preparations making for the increase in bank
note circulation have, il is now believed, had
more TO do with the heavy increase in bank
loans in the last few weeks than has borrow
ing for mercantile account. And the same
reason may properly explain the fact that do
rnestic exchange has turned so sharply against
this city. Banks and dealers in bonds have been
collecting Government bonds from all over the
country in order 10 secure the new per cents,
for which certain existing issues may be ex-
changed Money has left New-York to pay for
these bonds and hank loans have accordingly
been enlarged. fhe enactment of the Currency
bill into a law will he followed by a large ex-
pension in banknote circulation which some
authorities estimate will reach S10o,oo0.OO0.
Under the proposed law there will be a good
profit in taking circulation. even with
the new > per cents selling los, their current
price when issued. The increase in money from
this source will certainly offset the absorptions
from the banks by the Federal Treasury. which
have been the chief influence in the loss in cash
holdings in the last few weeks. The cur
rency measure will prevent disturbance il the
local money market, and it ought to be the
direct means OF starting active bull move
ment in stocks.
broker pointed yesterday that many
investors in Government bonds will object to
an investment yielding only ? per cent and will
in consequence sell their Governments and
invest in railroad stocks and bonds. 1t is evil
dent already that the Currency bill will cause
a considerable change in investment holdings,
inasmuch as the buying by the banks and
dealers Of Government issues has put a large
sum Of money into investors hands and this
amount will naturally seek refnvestment The
good railroad bonds should feel the effect OF
this influence first, and then the dividend and
afterward the non-dividend paying stocks
It is reasonable to argue, when all the feature!
OF the refunding ard bank rate provisions OF
the currency measure considered, that the
effect Of the final passage of the bill will be pro
nounced upon the market value of securities
and upon the position of the money market
The change may not come at once and market
declines may wipe out small margins before
an advance sets in, but in the end market
values will respond to the conditions named.
THE DAYS OPERATIONS IN BONDS