The age-herald., 1901-06-10
BANK STATEMENT RROUGHTOUT TRADE Stock Market Still Manipulated
 by Professionals SHARP BREAK IN PRICES The Bank Statement Showing lnroads Upon the Reserve Was Quite {. a Surprise to Many op-
 orators. =.
SHARP BREAK IN PRICES

New York, June S.-There was nothing to indicate any change in the professional character of the stock market today, and Its dependence upon manipulation for any important variation in prices until the appearance of the bank statement upon the tape. There was lively spilling out of stock after that and sharp breaks in prices. which wiped out the greater part of gains in the stronger stocks and car ried the general level of prices substan- tially below last nights closing level The heavy inroads upon reserves revealed by The statement was a surprise, although adequate explanation may be found for it. It vii be remembered that last weeks statement showed an unexpected Increase in cash. It appars that "a part of last weeks gold shipment did not fig are in last weeks statement, and, was carried over into this week.. The enorm- ous loan expansion was affected by some large corporate transactions. It was an- nounced this morning that the $30000,000 capital of the new Consolidated Tobacco Company was paid in yesterday in cash On Monday the fourth and last install ment of s10,Oo00OO on subscr pti ons to forty millions of Union Pacific convertible bonds is payable, and preparations have doubtless been made to meet 1t. The Steel Company's consultations in Phila- aelphia may also have affected the loan item here. The loan expansion of s21,- 2S4,400 is the third largest for a week in the history of the clearing house, be- ing exceeded only by an increase of $30,- A0,900 for the week ending February of this year. The early strength of the Gould Southeastern led by Missouri Pa clfic, the Tobacco stocks, Amalgamated Copper and a number of minor railroad stocks, had served to lift the market from its early depression, but the setting brought out by the bank statement sent prices lower than before. There was early heayiness in the United States Steei stocks before the general market turned downward. St. Paul declined in the best at 3A Rock Island 3; Missouri Pacific and Union Pacific PA each, and )Amalgamated Copper 3A. The closing was Unsettled and irregular after some fitful rallies and renewed declines.
 With no evidence to show a bad state Of affairs in general, and with speculative losses in stocks in process of adjustment, there Is a natural tendency towards re- newed advance in prices of securities. The sober second thought recognized the value
  health by the check to the excess of spec ulation in stocks, even at the cost of ar-s tificial profits based on the unjusti1ed speculative demand. In the iron trade salone there is hardly note of prepara- tion for diminished demand based on the falling off in new orders and less urgent requirement. for deliveries on old con- tracts. Foreign trade statistics show that the falling off in exports of manufacturers is largely accounted for by iron products lessening It does not escape notice that 4he continued plaint from foreign markets is of trade depression approaching criti7e cal conditions in the German iron trade. The apathetic money markets of Europe point to a period of retrenchment and contraction, such as logically precedes cheapened production. With foreign mar kets almost stripped of American securi- ties and the European requirements Tor our food stuffs undiminished the problem of the adjustment of the trade balance in our favor takes on new phases. The cur rent of the gold movement continues away from the United States, owing to the ab- sence of our own production, of that metal In this condition of affairs Amer ican capital likely to be left abroad in growing amounts and to play its part in cheapening production of commodities with which to pay the debt owing to us Such conditions promise increase of com petition against the high level of prices prevailing here as an effect of the growth of wealth.
 Business in railroad bonds has been small outside of speculative issues which have moved in sympathy with stock United States preferred 2s and the new As advanced F over the closing call of last week.