The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-11-13
STOCKS AND BONDS.

| New York, Nov. 1.-THE first decisive
setback to the upward course of prices
which has been in full swing in the stock
market since Wednesday morning last
/ occurred today, and conservative circles
| in Wall Street breathe easier as con-
sequence. The headlong pace at which
| the speculation has proceeded has been
the cause of uneasiness lest some unto
ward event should precipitate a violent
! decline with disastrous results. Today's
! late reaction was largely due to manipu-
lation by professional bears, and there
were indications that some of the large
bull interests were acquiescent in the
movement. A prolonged and extensive
advance, such as that of the last week
attracts a following of weak spectators
whose liability to fright and forced liqui-
dation on a very slight reaction are a
menace and an obstruction to the more
powerful bull spectators. This latter
class sometimes wink at a bear attack in
order to shake off this undesirable follow
ing. There was an enormous amount OF
profit taking accomplished during the
early hours of the day by professional
spectators, who began to feel doubts over
the continuance of the heavy buying de-
mand for stocks. Interests which had
thus sold out were willing to see lower
prices in order to buy back stocks. The
stiffening of the call money rate was the
most effective factor in inducing the late
reaction. Slxillful spectators have kept
a watchful eye on this index OF money
conditions; to detect the first signal OF
danger that the borrowings for specula-
tive purposes were overrunning the
available resources of the money market.
1t is not likely that there was any actual
pressure upon speculative borrowers TO-
day, but the effect upon speculative sent
iment of the rise in the money rate TO
5 per cent was conclusive. The sensi-
tiyeness of opinion to this indication and
the success of the professional attack
upon the market, after the many failures
of last week, warrant the supposition
that the eager rush to buy stocks has at
last begun to show signs of safety The
signs were not clear this morning when
orders to buy came into the market in
seemingly undiminished volume, but by
monday the activity had sensibly fallen
off and the later recovery in prices had
a somewhat artificial appearance, the rise
shifting from one stock to another, giving
the market a spotty appearance and
leaving the points of strength somewhat
| isolated Pennsylvania, which has been
reactionary for several days past, was the
leader of the recovery at an extreme
advance of two and three quarters points
but it had large following among other
substantial railroad stocks, which rose
from one to one and half points. The
earlier advance in the Steel stocks hac
run as high as five points in Tennessee
Coal and Iron and from two to three and
half in the leading industrials ano
specialties, including the local traction
stocks. Rumors have been current dur
ing the day of hostile intentions between
the American Steel and Wire and Federal
Steel Companies, and these stocks suffer
ed most severely in the late break Fed
eral Steel reacting three and a quarter
and American Steel and Wire two and
three eighths points. The selling on re-
action was precipitated, but in not as
large volume as the buying on the ad-
vance. Many of the industrials suffered
to the extent of between one and two
and half points. In the railroads the
losses from the best ran between one
and one and half in the principal stocks,
and in Pennsylvania Railroad reached one
and three quarters Covering by shorts
arrested the decline. but the closing was
unsettled and with speculative opinion
very uncertain, Pacific Mail was reac-
tionary throughout the day cd American