The representative., 1900-04-26

This week the industrials furnished thu
sensational element In the stock market
! Ineir unsteadiness for some time back, In
! the face of the rising tendency OF railroad
shares, has already been fully referred to
and 1t cannot be said that Wall street war
altogether unprepared for a decline in this
portion Of the market.
what surprised and Sdismayed the specu-
iauve puolic In connection with the severe
break In American steel and wire stocks
and the other steel industrials was the ap-
parently we'll founded reports that the clos
ing down OF some Of the company's mills.
though perhaps warranted by business con-
dltions growing out OF over-production and
decreased consumption at the prevalent
nigh prices, was attended by heavy selling
OF both the common and preferred stocks by
inside interests
In fact, even IL the declines in finished
steel product furnished a proper cause for
the action of the management in its sus-
penang operations for the time being, 1t
was promptly concluded that the manner
IN winch this was done and the sudden ma
ture OF the announcement left little doubt
as to the speculative reason behind the
move
Under these circumstances. particularly
as there were prompt Combinations Of the
reported concessions in steel prices gener-
ally, all OF the iron and steel stocks, with
few exceptions, shared more or less in
the general break and were only rallied by
contracts.
The railroad share list which was at first
inclined to hold its ground in the face of
generalization of the industrials, developed
more or less irregularity and weakness,
wnlcn was NATURAL in view Of the rather se-
we're liquidation of speculative accounts in
the leading steel stocks.
Or take this from Chicago source:
Especial Dispatch to the Chicago Inter
NEW YORK 4nr;1 Uesan.} ]s-,n II. ..,
financial article in tomorrow's Sun Matthew
Marshall will say:
The state of the stock market may be de-
scribed as famous English wit on his sick
bed described his own to an inuuiring
friend. dying of hundred excellent symp-
toms. General business, all over the coun-
try. ls good, that of the railroads BETTER
and that of the manufacturers, especially
OF iron and steel, the best of all. Money is
plenty ana rates OF interest reasonably low.
The Republican currency act, confirming
the gold standard and providing an increas-
eo supply OF bank circulation, Is not likely
to be attacked by the Democratic party IN
the coming presidential. election, and GER
ta1nly not without insuring that party's
defeat. Prices of staple commodities have
risen and are maintaining their rise, to the
huge contentment of the producers Of them.
Under these conditions . there naturally
should be great activity in dealings in
stocks and steady advance in them, but
the market for them is, nevertheless, mixed
and irregular. d y
depressing influence, which. though re-
mote, may possibly be powerful, is the con-
dft1on OF the money markets of London and
Vienna. Operations from those centers are
factors, sometimes, of considerable impor-
tance here, and buying and selling by
means of the telegraphic cable have the
same effect as II they originated on the
spot. The South African war and the con-
n fxo britt oh
ment have made money dear in London,
and the excessive industrial expansion OF |
Germany has done the same in Berlin. |
Hence the business which our stock ex- !
change would otharw,sa get from those !
quarters Is materially reduced In volume, !
and Is confined to quick turns. which have |
anything but a steading tendency. The |
prices OF foreign exchange, too, indicates |
that Europeans are selling here more, than
they are buying, or, perhaps. are borrowing |
from us and notwithstanding the apparent
balance of trade in our favor, they may
draw gold from us.
The financial magnates on this side Of the
ocean must be aware Of the possibility of
this ef1ux of gold and of an enforced conse-
quent curtailment of their ability to ac-
commodate borrowers. The increase in the
volume of our currency from SIT per head
of the population in 1879, and $21 in 1896,
to over $26 per head at the beginning of
his month, stimulating as it is to business
activity, involves a cOrrespondingly in
creased liability to collapse under pressure.
An abundance of money in any country
makes that country the best market in the
world to sell in and the worst to buy In
3ur foreign creditors are tempted to take
heir pay from US in gold instead Of CON-
nodities, and thus to restore the equlli-
,rium Of the money supply.
1t is coming! 1t is coming!
Can the banks stave it off until after
election?
Everything hinges on that. II they
annot the Populists will win.
I. D.