The times. [volume] (Washington [D.C.]) 1897-1901, 1900-12-09
A REACTION IN STOCKS
Declines in Prices General During
the Past Week.
Apprehension of Money Market
strfngency Causes Smaller Traders
to Sell - London Professionals Go
Short on Americans - Disappoint-
mcnt Over the Sugar Dividend.

NEW YORK, Dec. SIT has been a COM
paratively quiet week, both in and out
of Wall Street. In the security market
there has been a moderate reaction in
stocks that were prominent in the Noyem-
Der advance, and this movement has been
accentuated by disappointment over the
dividend on Sugar Refining common, pros
poets that the dividends upon Tennessee
Coal and Iron and upon United States
Rubber preferred would be reduced, and
fears on the part of small traders and
brokers who carry their accounts that
the money market may become uncom-
fortably active before the end of the
year.
Moreover, London has been moderate
seller in this market. Its operations,
however. can properly be classed as of
the same character as those INDUCED in
by local professional traders, that is, the
foreign arbitrage houses sell stocks one
day and buy them the next. This week
they ended with net sales of possibly
$4,000 to $4,000 shares.
Notwithstana. ng these untoward con-
have developed in the market. The de-
msud for bonds has been unusually active,
not only for high rate issues, but for those
that seem to be approaching an interest
paying basis. At the same time there has
been in the stock list revival of ac-
tivity in lowpriced shares. The monetary
outlook today is somewhat more favorable
than 1t appeared to be yesterday. The
loss in cash reported in the weekly state
mont of averages is about $4,000, eco less
than was foreshadowed by the known
movements of money down to Thursday
night.
Another equally important change is
the comparatively small increase in loans,
showing that the stock exchange COM
munity. in spite of large arrivals of Sc
curities from abroad has not made heavy
demands upon the lenders OF money this
week. The net result reduces the surplus
reserve by nearly 80 per cent, leaving
that item at S., 7O1, 600. Another occur
renee favorable to the money market is
the announcement today that the Treas
ury Department will anticipate the in
terest on Government bonds due January
/ amounting to a little over $4,000, 900 on
the 18th and Goth of this month. These
disbursements will obviously tend 10 off
Get the absorption OF money at this CEN
tire by the Sub-Treasury. as the greater
part of the interest is made here.
The reconvenng OF Congress has not
disturbed confidence. as the event occa-
sionally does, for the reason that the
session is a short enc and will be de-
voted largely to the transaction of rou-
tine business. Foremost under that head
ing is the proposed legislation for Teduc-
ing the amount collected through internal
revenue taxes. The probable success CT
this movement has already had senti-
H. ,,,-t-a
To6ay's stock market was only inoder-
ately active and the course Of prices was
irregular down TO the time the bank
statement WAS published. Expectations
of an unfavorable showing by the banks
induced sales for both accounts. The IN
covering of fairly large volume of stop
orders accelerated the decline in prices.
Tennessee Coal and Iron. Sugar Refining.
and Continental Tobacco were exception
ally weak.
As the bank statement made much bet
ter showing than had been locked for gen.
orally, the professional leaders who were
short of stocks hastened to close some of
their contracts. The demand from that
quarter promptly demonstrated that there
were very few stocks fer sale, for prices
advanced sharply during the last half hour,
end in many cases the early losses were
fully recovered.
A number of stocks influenced by spe-
cial considerations closed considerably
higher than last night. Among them were
American Smelling. which is being ad
vanced on the progress being made toward
a consolidation OF the company with its
principal competitor. American Tin Plate,
Erie second preferred, Federal Steel,
American Steel and Wire, General Elec-
trio. and Colorado Fuel.
The last named stock advanced 2 12
points from the lowest price. and showed
at the close a net gain of 1-2 per cent.
After the close of business the statement
OF the company's net earnings for October
was made public. 1t shows net receipts
OF $25i, 1856 an increase of S12. CS1. as COM
pared with the same month Of last year.
For the four months ending October 81
the net earnings were s92O,O2o, an increase
CT s3s5.S9S. compared with the CORE
spending period of last year. The most
extraordinary part Of the statement is that
the net earnings for the four months are
s31S, 23O in excess Of the bond interest, |
taxes, and preferred stock dividend for the |
entire year ending June 80 next.