New-York tribune., 1901-01-04
BONDS.
THE DAYS OPERATIONS IN STOCKS

ltGE Dan otEhA1loNN IN SloOAo-
The stock market enjoyed a healthful setback
in values in yesterdays trading. Weaker Lon
don prices and active selling for foreign account
encouraged the professional element TO work
for lower quotations. and with few exceptions
securities responded to their efforts. Timid COM
mission house traders frightened into SELL
ing by talk of money trouble abroad and Of gold
exports from here Stop loss orders were
reached in many issues but sales made We're
taken by a good class OF buyers. While the mar
minded speculator thought the decline re-
fected the beginning of the end Of the bull
movement, the conservative interests in the
Street saw in the course of values an accumula-
tion of stocks in preparation for further bull ac-
tivity. It may be recalled that the great Janu-
airy market Of 1899 started with heaviness and
declines in the early part of the month. De-
clines at this time will help the market and in
sure a big buying movement for the account Of
strong financial interests. Commission houses
were heavy sellers for dealers who operate on
small margins. and in the last hour the aggres-
siveness Of the bear element uncovered many
stop loss orders, while it kept the market within
bear control until the close. Total sales Of
stocks approached the high record of November
H. The transfer of holdings from weak to
strong hands represented readjustment, which
I'm ordinary markets would extend over several
days. and it is therefore thought likely that the
selling movement will not run beyond to-day.
The advance by the Bank Of England in its
discount rate TO per cent and the strength in
local sterling exchange suggest the possibility
of gold shipments from this side. Gold exports
will not he adverse developments. Indeed, they
Will show the strength and financial resources
OF this country and its willingness to lend
money to Europe. which is now apparently in
need Of assistance Bear traders in stocks will
doubtless endeavor to create a scare because of
foreign money conditions, but sensible people
will not give ear 10 bear predictions at a time
when this country is stronger than ever before
in It's history Credits abroad are increasing
and American bankers are lending large
amounts Of money in all the foreign money
centres With a big Industrial movement at
home. the ability Of this country 10 finance the
difficulties Of London may be questioned by the
poorly informed operators in stocks. but people
who understand the situation will readily see
that money is in enormous supply here. with
ample surplus to extend assistance to Europe.
The foreign situation. however is not critical
and IL is not probable that heavy American gold
shipments viii be necessary. Declines in stocks
brought about by selling from timid holders
and by professional pressure against the market
should be taken advantage of by careful oper-
ators 10 secure good investment and speculative
securities. The bull market is not at an end.
Prices have not vet measured present and pros
pecfive conditions. and they will not represent
actual worth until the cheap and medium priced
securities sell higher
The low priced coal shares the Southwestern
stocks. Southern Railway and Louisville and
Nashville being taken by careful buyers
Southern Pacific Of the Southwestern group
ought 10 sell much higher. Louisville and Nash
willie has not enjoyed an advance in keeping with
SITS current earnings md dividend prospects.
and the same may be said OF Southern Railway
preferred. Texas and Pacific and Missouri
Kansas and Texas preferred are selling well
under their true worth. In the industrial list
the steel stocks, American Car and Foundry
preferred. National Tube common. International
Paper preferred and International Pump issues
ought 20 advance TO a much higher level before
the bull market reaches its limit The best kind
OF buying developed in yesterdays decline, and
the result OF the days transactions placed
stocks in stronger hands and induced greater
confidence in banking circles over the future Of
the market.