New-York tribune., 1900-05-06
BONDS
THE DAYS OPERATIONS IN STOCKS

The stock market strong and higher
the greater part of the day, but in the majority
Of issues trading extremely light. Although
the bank statement presented a decrease in re-
serve of over 81 100000 the movement of val
not materially affected. traders show
ing disposition to Increase their short lines
while IN many instances reduction of short ac-
counts was noted. In fact, the advances In
most stocks were due covering Of shorts. The
market was without especial feature. but one of
interest the continued quiet buying by
brokers who usually represent important mar
ket followers. Wabash securities were said to
be in demand for inside account Long Island
was notably strong, and the buying was excel
lent in character Sugar Refining sold off after
an early advance, and the industrials in general
We're inclined to heaviness The general rail-
road list firm in the greater part of the
two hours of business. and. despite final reac-
tions. closed at small net advances. Changes in
bank holdings showed a further large increase
in loans and deposits. but gain in cash, which,
however not large enough to offset the in
creased liabilities influence upon surplus
above legal requirements The heavy gain in
loans can only be explained by borrowing in this
market on the so-called sterling collateral opera
tion. Bank reserves are still heavy, and the
actual position of the institutions is better than
reflected in the statement. Holdings of the
figure in reserve and despite gold exports the
banks gaining on interior operations.
The reduction in the price of iron and steel
has brought out new business and the general
reaction in trade from the abnormal expansion
and rise in values in 1899 is strengthening in
dsstrial prosperity. readjustment is going on
in many markets. A readjustment that i'm
proves the health of a market does not always
impress the Wall Street mind. because the mar
row vision of the trader is unable to figure upon
results where methods employed that, for
the moment, cause surprise and uneaslness TO
the security market. Production and prices had
advanced beyond actual demand. and they are
being adjusted, with increased trade ac-
tivity already noted. Traders in stocks who are
selling short because of the reaction In trade
believe that permanent contraction in business
activity has begun rather than a healthful
The short interest in stocks is large. In fact, 1t
is heavy that its own weight is likely to crush
1t. And il is in this position because specu-
lators of the boarGroom type are confident that
more powerful than conditions based upon
actual facts II important holders of stocks
were willing accept the bear ideas and sacri-
fee their possessions, then the short side would
be attractive, but, unfortunately for the opera
tors who have sold stocks that they do not
own the principal holders Of securities are
maintaining position the long side OF the
market the theory that trade in general
will continue prosperous and money and politi-
cal conditions will not upset actual values.
1t is interesting to note that, despite the gloom
in Wall Street in the week Just closed, i'm
portant stock has come upon the market; also
that substantial buyers have been quietly add
ing to their possessions 1t is quite possible that
bull market VIII not develop once. but it
appears reasonable to assume that the short in
terest VIII have some uncomfortable days in the
course Of the next few weeks. There are no
shorts may cover at sacrifice prices. And when
they wish 10 cover they may find that they will
be forced 10 do so at advancing prices.
The usual weekly table of price changes for the
moro active stocks follows: