New-York tribune., 1900-05-27
fiuanrial.
The Financial World.

came suddenly and unaccountably weak. where
as every indication at it's close Saturday
pointed TO advance. The pressure TO sell
stocks seemed to develop over night. while there
nothing in the news Of the day. in sur
face conditions. to account for it. Hence the
feeling of surprise il OccasiOned. The mystery
was cleared when the failure OF Price. McCor-
mick & Co. was announced The same announce
ment also gave the clue TO some erratic move
ments in particular stocks. which occurred be-
tween Monday morning and Thursday noon,
when announcement OF the failure was made.
The failure was more IN the cotton market than
in stocks. yet the commitments of the firm IN
the stock market ran very high. Stock Ioans
it is said. run up to S10OO0OOO. Their opera
tons in stocks. however. would not have en-
barrassed them-so far appears now; hence
there comparatively little disturbance IN
the closing of their accounts under the rule
Accounts closed under the rule accounts
with members Of the Exchange. They are not
the accounts which the firm had with banks
and trust companies. The liquidation OF their
loans with these has had depressing effect on
the market since.
OF course the effect Of such event was to
produce a partial paralysis Of the market The
average trader stands off, waiting to see what
the after effects are to be. There some lit
tie stifening OF prices on Friday, after the
day the market turned weak again rumors
that there were weak accounts in other direc-
tions.
This was very natural sequence; for just as
surely as settlement of a trouble Ike the
gas war strengthens the speculative situation
by relieving some group of capitalists Of bur-
dens they had been carrying; so surely does
great failure weaken it. since the distrust it
engenders uncovers weak spots in other drec-
cuIt fOr har
pressed borrowers to get accommodation Thus
it happens that not only may smaller concerns
go over through direct connection with the
bankrupt firm; but other houses which may
have commitments too large to be easily taken
care of find themselves forced to IiQuidate. The
full effects therefore. of a failure as large as
that referred TO. are never over in Gay or two
This is so well understood. that after such an
occurrence the market almost invariably be-
comes heavy and exceedingly dull. traders gen.
orally being afraid to do anything. Just at
present. if the transactions of the room trad
chasing eighths and quarters were eltmi-
mated. business the Exchange would be quite
nominal 1t nearly yesterday
1t is noticeable that the foreign markets have
sunk into state of duIlness similar 10 own.
Nothing doing is the cabled report. and prices
shading off. At the same time discount rates
are reduced by the foreign banks. and money
it. There is no getting away from the logic OF
this. 1t means that general trade is Stacking
down equally in Europe here. Fut il down
summer dullness. or any other cause which
may suit ones theories the fact remains the
same.
That this Stacking down is preliminary to
general readjustment of commodity prices is a
certainty The various markets. as OF iron,
steel and other metals; of textile fabrics. build
ipO and 0fhA |pr-
the time being disturbed and uncertain They
are trying to find their level; and each
is closely dependent the other, IL Will taks
some time before they all find a secure basis.
When it is finally found and the readjustment
process is completed. business VIII revive
Meanwhile the stock market. which is the mir
of all industries. will continue dull; its dull
ness only sympatheticaIly disturbed by move
ments in particular stocks, which have special
reasons for activity 1t is rather blind guessing
to put date at which the market should take
life and vigor; but il a guess had to be
made it might be put about the time when the
output of the winter wheat crop is ascertatned-
This should be nearly the middle OF July. By
that time. the outlook for the spring wheat and
corn crops will also be tolerably clear: and for
a special cause, it may be added. the political
conventions will have been held and the drift
of public opinion on the respective platforms Of
the two parties viii have manifested itself.
If the crop outlook is bad. look out for trouble.
One certain effect of ii would be to cloud the
political horizon; for the party in opposition IS
seeking capital in the direction Of misfortunes
TO the country. But If we have crop failure
this year-and the prospects now all for
good crops-there will never be a day In the
campaign when the chances for Bryan's elec-
ton against Mckinley will appear any better
than those of Aguinaldo or Kruger.
Generally. the list closed lower yesterday than
the week before Exceptions were Sugar and
the Tobacco stocks. which recovered somewhat
from previous breaks The railroad stocks are
down from one 10 two per cent-the latter the
grangers. The Pacific stocks have stood up a
little better Northern Pacific has stuck very
closely around CO. although it is still doubtful
whether the dividend will be raised. Atchison
preferred is lower. and il is understood that
the failed firm had good deal of it, which has
been, or is still being sold. Meanwhile the earn
ings of the road keep up. the increase in gross
and net for April approximating half a million
Trade and traffic reports show that the Pacific
coast is relatively the most active part of the
country industrially this time This comes
largely from Oriental trade. Ice stock en-
joyed a prominence which must have been inter-
esting but not satisfactory to it's holders II
was recently above 10. and yesterday below 80.
If the stock is not purchase at present prices
agitation against it-provoked by the injudicious
action of it's oficers-does not diminish the sales
OF Ice 1t is amusing 20 note that a corporation
against which proceedings have been taken on
the ground of inegaIty. has five New York
judges among its stockholders
What can be forecast OF the market for the
coming week. Is not specially ancouraSspv II