The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-06-30
HOUSTON DAILY POST: SUNDAY MORNING, JUNE 30 1901
CONFIDENCE IN STOCKS.
Prices Were Bid Up Yesterday by
Professional Operators.
CORN.cARRYING CHANGERS IN DEMAND
Favorable Condition Attributed to Good
Crop Reports from the Corn Belt.
Effects OF Failure Worn Off.

New York, June Professional opera.
lions played a large part In today's stock
market, but the professional operators
bought stocks quite freely and bid prices
up with confidence. The conviction that
the money market will show progress to.
ward greater ease next week, with tho
disbursement Of funds accumulated for the
purpose Of paying half yearly dividends
and interests, was the handspring Of that
confidence.
There was relief also over the settling
up of the affairs OF the stock exchange
house which closed It's doors yesterday Al
though the embarrassment OF .his house
came as surprise to the general market,
It's struggle to secure means to continue
mas been known to business cohnections for
some time and has created dread of the ef
rect OF the failure, 1t is believed hat the
greater part of its credits had been ac-l
cumuated with the bank whOye susnen
sion was caused thereby. With the shock
OF inc announcement passed, and affairs
IN course OF settlement, the atmosphere is
felt to be clearer.
T1a corn carrying grangers were in con
spicuous demand today on account of fay.
3rdole reports regarding the corn crop
lhere was fair sprinkltng of gains,
Itaghlng point or more among the i'm
porlant standard stocks while Illinois Cen.
va rose w 81; Paul 31s and Rock Island
ment was less than the known movements
OF money had indicated.
me large increase in loans was attribut-
ca 70 STOCK exchange liquidation and was
10 the benefit OF the surplus, but 1t is
probable that the large repayments of syn.
Ncate loans figure in the loan item While
me money disturbance Of the week pre-
cipltated some liquidation, there was also
urge sums loaned on the stock exchange by
ARG hn4inclal interests with the purpose
Ib.
closed quiet at about the top level
The Influences which are really to i'm.
press, II not depress, speculation in stocks
during the last week in June, have been
emphasized this week by the disturbance
Of credit caused by the failure Of the sev
enth National bank and the stock exchange
house whose operations had Involved the
bank In its difficulties. The financial dis.
turbahees in Germany, growing out of the
failure Of the Leipslg bank has been
minor influence in the same direction. The
result has been some liquidation by weak
speculative holders which cut into prices
through the list The liquidation was not
remarkably heavy aud prices came back
rather easily In the intervals of the sell
ing pressure. This was partly due to the
} fact that the stock exchange house Involved
was on the short side of the market and
tue closing out OF its accounts involved the
buying In of stocks. But the usual conse-
QucncCs of a downfall of baukipu credit
however much the causes were to be local
: lIcd ana due to irregular methods were
: not 10 be escaped, The disclosures In cot-
, LeCupn WIN the failure made 10 showing
calculated To arouse dIstrust as TO the
hoununesS of the general business supposad
20 pc conducted on conservative lines, tut
hai the inevitable effect Of ccUslng a clos
er scrutiny Of collateral on the part of all
money lenders and feeling of suspicion
of credits In general.
Much hpcO SAT .l-
rue Slo3k market panic in May Of the
htalVIM result of that episode In having
J Snesked excessive speculation, which would
lead 10 imitation OF prices ana to the aota-
lion OF all manner Of doubtful securities
re very general recuperOtlon IN prices OF
, standard securities since In the May over
turn has reyIIed condolences IN the Intrinsic
, value OF securities. Such developments as
those of his week, HOY ever. nctc some
: 10 Contemplatiye reasoning as to tile after
. euects likely TO flow from great speculn-
tive boom Ike that of thls year IN It's resi-
due Of securities in which capital vas con-
: Identity invested during the boom period
with the web warranted prospect of n
I ready sale, while all was confidence in the
, indefinite rise Of prices and spectators
J were eagHtY seeking now securities.
, Ihc numbT OF new securities OF a minor
1 clats which did not figure al all In the
! sinCb exchange dealings and which are Of
I que class designated inactive" has been
, lEdenutey multiplied In the last few
, mvLtns; some OF them are dealt In at
long intervals and in SINAI amounts on tho
stock exchange or In the curb market mt
rs Wes which stimulate substantial value
for the whole property OF which they repre-
sent share, hut their uuavallabiity for
. ltauy conversion into cash when necessary
= TO rtcupCratc bank for large loan lis the
: face brought home TO wall Street There
; mas beet in consequence much throwing
; ont OF doubtful collateral for loans and
Gazing or loans for any cause of dsatis-
: faction which aggravated the scarcity OF
l money incident to the season Calculations
that large repaymcnts of loans by syndi-
J Gates aud corporations would Offset The
large borrowing to provide for the half
yearly dividend disbursements have there
rate Of money was sufficient to discourage
any, speculative buying even If speculative
confidence had not been affected by the
otncr events of the week. Great conn.
s dence Is protested that the market win
be benefited by the release of large
anountS OF money next week by the diyl
. dcnd and interest disbursements, hut In
2 times past this relief has proved somewhat
. Ing the restrictions OF money supplies and
. the narrowness OF the speculation Wall
the future. The outlook for wheat crop
; o. almost nneSampled proportions coupled
! With foreign shortage Is the most Import
! ant item In this confidence.
The shortage in Germany has been sup
piemented ey the growing evidence. Of large
the growth OF the foreign exchange at the
/. gold export point while the excess of mer-
{ ehandlse exports over imports Is az an un.
. change Is varlousy explained One ex-
! PLANTATION which comes from Paris Is that
NV AtAN INhhAAk oAhhltAtfr were ufANN
o borrowers there last spring az the same
z time We We're taking up the expanded re-
, sources OF New York banks growing out
I OF the country's prosperous year and the
/ substantial increase In the currency by the
4 new National bank law. Repaymeuts OF
4 these foreign loans now as an incident OF
8 the placing with the public OF the securlt-
D les OF the various projects noated by the
/ syndicates has kept up foreign exchange.
h So has the continued return of American
: securities by foreign holders London
o nnoucial authorities assert that American
, Insurance companies and bankers have
: | been large purchasers Of foreign govern
ment securities for investment, though In
formation OF this is lacking In New York
The large production OF gold In the United
Stareb has made the world dependent upon
. us for part Of It's supply OF the precious
e metal. The stripping OF foreign markets
4. OF American securities and the possible
redemption OF South African gold produc-
tiOn had some eject. Such thing would
t be likely 90 have a reyiving influence on
~ prices OF securities,