The San Francisco call., 1901-11-03
EASTERN MARKETS.
Ne1C York Stock Market.

NEW YORK, Nov. 2.-The stock market was
spotty and irregular to-day. but made a firm
closing at about the best generally after the
appearance of the weekly bank statement
Very large orders were placed in various stocks
to effect the rally. The selling was after the
bank statement had been considered and the
earlier gains had been pretty well wiped out
Union Pacific was most prominent in the rally
and was marked up to 1881 through many
offerings of several thousand share blocks each
The Southern Railway stocks Baltimore and
Ohio, Amalgamated Copper and United States
Steel preferred also rallied strongly, the last
named rising point over last night. St
dropping back to the lowest Of the day just
at the close The general movement was mar
widely. Peoples Gas was sharply depressed
There was strength in Illinois Central and the
st. Louis and San Francisco stocks 1t was
the week. would not figure for their full
amount in the bank statement under the aver
age system But the cash decrease proved, to
be 81, ,500, 900 in excess of the estimates. The
loan item showed the prospects Of loan
pansion by the banks still heavy in force. The
London money market showed relief by redis-
bursement of November dividends and sterling
a. / aL1s eIeu q VI LlleL BUY
as practical certainty. The strong rally in
Union Pacific at the close was accompanied
by rumOrs that a statement OF the terms or
the Northern Pacific settlement was a, POSSIBLE
ity before trading resumed Monday.
during the whole Of the past week. with no
consistent movement defined at any time. The
eOOlSS IN the pOOl OI KSptCuidllOu
have been due to movements Of individual
stocks under the influence of special causes.
The prevailing impression among market OBJ
servers has been one OF dullness near TO the
record low level For the first time this year
the weekly transactions in stocks have fallen
below the aggregate transactions for the cor
period last year during one Of the
weeks Of October. yet survey of the transac-
tions of the whole month reveals an aggregate
of s14 029 147. compared with a total of So 9OO-
9S5 for October Of last year. which was in turn
the largest aggregate of transactions for any
October NJ
bonds for October just ended amounted to a
par value Of $64,954,6 60O compared with S42. 2s7,
600 In October Of last year and S5SS47, $50 in
October Of 1898. 1t will be therefore that
the sensation Of dullness is due to the
latiYe Juror of the earlier part of the year,
when the daily transactions from J, coo, e'e
to 5000, 0oO shares day Tor many consecutive
days. 1t IS true, however, that speculative
operations have fallen to a low ebb and
left almost wholly in the hands of professional
operators.
The multiplication of securities listed and
dealt in by their expanded share issues
counts for the maintenance OF the amount of
business in the stock market above any pre-
Vious record for the corresponding time of the
year. The usual Withdrawals of banking de-
posits for active circulation in the of the
crop movement makes this nominally period
of dullness in speculation. The fostering cause
Of speculative activity is the accumulation of
idle reserves in the banks, which are employed
by the average speculator in the form Of loans
on call.
It is found to be the invariable rule that a
demand for money for mercantile and indus
trial purposes works contraction OF the sup
ply available for speculative purposes on call.
no matter what the ruling in the rate for call
loans may amount to; Thus. in December
1899, when the war IN the Transvaal broke out,
demand for call loans for speculative commit
ments on the Stock Exchange ran the rate up
to Is6 per cent per annum and precipitated a
severe panic, but did not check the outgo of
gold to London. Speculation is therefore nat
lrally tipnid in times of strong currents in the
shifting Of money supplies. Opinions continue
to vary as to what will be the ultimate direc-
ton of values when speculation issues from
its present dormant and hesltating condition.
The aggregate requirements of foreign money
markets until the turn of the year are still
to the likelihood that the New York money
market will be called upon to meet those
quirements. The beginning OF gold exports in
Paris and the advanced Bank of England dis
count rate point clearly to the conclusion. The
ability OF foreign markets to command gold
from New York in face of the heavy trade bal
ance in our favor for many months is now
seen to be due to the enormous return of for
eign holdings of securities to domestic holders
and large borrowings by home capitalists and
syndicates during the struggle for control of
the Northern Pacific and the organization of
the United States Steel Corporation The pro-
longation of the BOer war keeps Europe shut
OF from its customary source of gold supply,
makes it the most available source of supply.
Industrial depression In Germany and in Rus
sia have involved heavy losses. French capital
having been heavily committed in Russia. This
is held to account for the calling home Of
French capital.
eign capitalists have not entirely approved of
the uses to which their money put by the
borrowing from capitalists and syndicates here.
The depression abroad is already reflected in a
degree in the decline in exports and in
the Increased competition for surplus products
and lower prices and the question obtains how
much further this tendency may go.
Attention has been attracted this week by
reports of retirement from business of wheat
exporters on account Of disappointing foreign
demand and collapsed ship carrying rates, so
that speculative contracts both in wheat and
ocean freights have involved losses.
The export of iron products has avowediy
fallen to Insignificant proportions, although the
urgent demands of the home trade are given
to account for this. 1t is one of the many
anomalies Of the foreign exchange situation
that London has to shift the Paris demand for
gold on New York while Australian gold is
shipment to San Francisco and ultimately to
New York. The weeks shipment of 81 $50 900
to Paris is exactly counterbalanced by gold re-
ceived in New York or in transit from Aus
tralia. The recall Of bond purchases by the
Secretary OF the Treasury only partly relieved
money market for the unwieldy Government
surplus Opinion is not well defined as to
whether not the country's prosperous condi-
tions and prospects not overcapitalized on
the basis of the large financial organizations
of the past year, notably the Burlington
deal. the United States Steel Corporation and
the general high level Of prices for securities
still prevailing.
Railroad bonds have been quite active during
the week, with points Of notable strength here
and there.
United States ss advanced T. the refundine
Is and the old IS u. the IS q and the new As
per cent above the closing call of last week
NEW YORK STOCK LIST
Stocks Sales. High. Low. Close