The Washington times., 1901-08-29
Government Bonds.

L. s SIS X, 1y0i................ i0IH 81
L. 5. SIS, c, 1904, Q. F........... iG1a los =
The stock market yesterday was not
an important one, either in the amount
of business done or in the range OF prices
Furthermore. it did not furnish much in
the way of index to the probable course
of the market for the remainder of the
week and for next week. AT the OPEN
ing there was a recession to level low
CT than any reached on Tuesday Later
in the day the course of prices was ir-
regular. but for the most part toward
higher level. The close showed more net
gains than losses among the active secur-
itics. Ii anything WAS shown by the
days business. it was that there Is no
great desire to sell stocks anywhere.
There is some realizing among the recent
converts to the bull side who wish to
take their profits in view of the coming
three days holiday. This, with some
cline of Tuesday and the early weakness
yesterday. But the break on Tuesday
and the opening softness yesterday did
not attract any following among the i'm
portant holders of stocks. On the con-
trary, there was some support given at
the right time by the inside interests and
the pools. The public, for the moment ut
least, withdraws from the market after
beginning TO buy. The insiders take back
the few stocks that they have sold to
the public. So much would appear to be
the extent of the meaning of the decline.
The question now is whether the in
siders Will begin to move prices up again
ard make another attempt to secure the
cooperation of the public at this time.
or whether they will give up the at
tempt at the moment and wait for what
may be a more favorable opportunity la
ter in the year. Every day brings nearer
the period of sitter money rates and in
this way every recession in the market
IN rtratt al.lf
misfortune to the people that desire to
see higher prices On the other hand.
perhaps the insiders Will consider that
the better strike settlement outlook, the
hope of a good September crop statement.
and the other good features of the situa-
tioh will be sufficient in the way of bull
lsh argument with the public to outweigh
the money outlook A good many care
porary decline in prices at some time In
the near future on account of the finan-
cial situation. The difference of opinion
in bullish quarters is as to whether there
will be a further advance before this
decline comes. Many conservative COM
mission houses. however. are advising
the purchase of good securities on the
declines.
The Importance of the financial outlook
cannot be overlooked at this time of the
year. The West and South already are
calling on New York for funds, and while
their needs may be somewhat less this
year for various reasons than they have
been heretofore, it is certain that good
many millions of dollars will have to be
furnished by the metropolitan banks TO
offset this drain there will be receipts of
gold from the klondike and from Aus
tralia. and, in all probability, some re-
ceipts from Europe. Notwithstanding this
counter-movement, IL cannot be doubted
that the present reserve will dwindle for
some weeks to come, even If il does not
give way to deficit before the autumn
is over. This will mean that the banks
VIII be more and more reluctant to lend
money for speculative purposes. 1t would
seem almost a certainty that during this
period there will be a decline in prices
even although the boom may continue
later in the year Any attempt to force
a boom under such conditions would be
very likely to precipitate a panic. But
tighter money may be two or three weeks
off yet.
The Gould securities were the most
buoyant all day, all making good net
gains. Missouri Pacific opened at 1856
and. after advancing to 1861, closed at
1e61z. Texas and Pacific advanced to 46es
in a bulge that attracted much attention,
and then declined to 45@4 at the close
which was well above the Tuesday level
Kansas and Texas and Wabash were
both strong The talk of the merger in
the Southwestern securities is heard cv-
cry day, and IL the financial conditions
warrant, IL is probable that the plan will
be pushed to the front in the near fu-
ture. Insiders of the Texas and Pacific
are said to be buying that stock because
of the particularly advantageous position
that it will be given in the deal. The
earnings of the company recently have
been excellent. There was one item of
news regarding the group yesterday. The
Pittsburg court refused an injunction
against the Wabash entering that city.
Two other Southwestern securities, not
n hn incl
weakness at times. though they did not
lose any ground for the day. They were
Southern Pacific and Atchison common,
which went as low as 593s and 71A respec-
lively, and closed at 59M and 7sSs respec-
lively. The weakness of Southern Pacific
IT. the early part of the session was per-
haps due to the statement from semi
official source that the company will ex-
pend 100000 during the next five years
in betterments. This, 1t was said, pre-
cludes any possibility of a dividend this
year. AS matter of fact, no dividend
has been expected this year by conserva-
tive people, and the intention of the man
agement to spend a large sum of money
Oh betterments has been Known for sew
eral weeks. The announcement that this
would be made was publish
ed in this column more than a month
ago. There is nothing in this information
on which to become bearish on the stock.
The earnings Of the company are equal
to per cent on the stock, and even II
half of these earnings are to be expended
on betterments, as has been intimated,
very large sum will go into surplus
that may be used for dividends at any
time. During the present year the earn
tngs may be considerably more than 3
per cent
The Union Pacific directors meeting
was understood to have been postponed
yesterday afternoon because no quorum
could be obtained. The meeting lost in
terest for the public as soon as it was
semi-officially denied that any of the
prominent people mentioned in that con-
nection would be elected to the director
ate. Even without Mr.. Morgan and Mr..
Vanderbilt and Mr.. Rockefeller on the
directorate. however. the company is in
excellent hands, and is making fine
showing, which makes It's securities at
tractive to many careful investors. The
stock is selling rather below parity with
St Paul. comparing its movement with
that in the last boom.
The refusal of, the Atchisoa securities
to advance on the fine July earnings
statement is something of a mystery.
Probably their recent great buoyancy
may be considered TO have discounted the
issuance of the figures which Were known
approximately several days ago. The
statement is a wonderful one, however,
and II indicates a condition OF prosperity
that will not be overlooked by careful
investors. The net earnings of the com
pany for the month were very nearly
100000, or at the rate of 100000 a
year. Such earnings, If continued
throughout the year. would cover fixed
charges. per cent on the preferred stock
and between II and IL per cent on the
common stock. OF course, il is not to be
expected that this will occur, but the
officers of the line say that the corn crop
will not prevent 1t from at least dupl-
eating the fine showing made for the year
just completed.
The Steel stocks were strong. The strike
Is not ended from day to day. but from
day to day ii becomes more and more
probable that 1t will be ended shortly.