The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-02-22
IN THE STOCK MARKET.
SHARP Turn in Steel Stocks Redeem.
ed Market from Dizziness.
NATIONAL STEEL ROSE EXTREME 53.S
The Other Steel Stocks Were Not FaI
Behnd-Details Were Closely
Guarded.

New York. February 21.-The sharp turn
In the steel stocks which gained force
rapidly toward the close of the market was
the only thing that redeemed the market
from embarrassing dizziness today. Ma
tional Steel and Tin Plate showed the most
pronounced strength In this recovery, the
former rising 5M over last night and the
latter "A from the early low point. The
outstanding short interest, which has grown
quite large in the stocks of the steel con-
panes, had a large part in this quick
rally. The report that the so.called
Moore" properties of the steel group were
standing out tor n large share in Tho sc.
| curitics OF the new company was an lntiu-
| encc In the rise and the supposltion OF the
| SPECTATORS being that they were likely to
get what they claimed. But the other
| steer stocks were not much behind In the
| movement. Federal Steel rallying "a from
the low point, Steel and Wire 3ls and Fen
nessee Coal 3, Whether the movements
! accurately forecast any actual devpllD-
ments In the steel merger negotiations can
only be told when the results are gwen
to the public. Details were closely gudtdpl
NJ to the time of the closing of the mar.
ket, hut 1t is the general suppostion that
me reorganization plan of the steel com
pahy so lar as 1t is to have official an
nouncement will be given out before trad
ing is resumed on Monday Actual in
formation on these details Is so vague that
the shorts in the steel stocks were nyrr-
come with timidlty and FASTENED to close
tnelr contracts before the coming three duy
holiday. The same influence was Mt ;yorj;
In other parts of the list
INC early weakness of tho market began
to change to recovery when support wns
manifested in the steel stocks The weak
ness was quite acute at one time the steel
stocks leading the decline us they did the
recovery Many of the prominent railroqd
stocks were down between and points
the Srangers, Pacifics Southwcstcrns aud
coalers being conspicuous. Burlington
Kansas and Texas preferred. Erie second
preferred and Rock Island were notably
weak. These stocks were all conspicuous
in the rally also A number of the in
portant railroad stocks were lifted point
above last night. There was very large
demand for the Southern Railway stocks
and for Wabash securities There was 4
vague expectation Of some good news to
come concerning Southern Railway, bu,
nothing definite was announced. Run"rs
10 tn" effect that community Of interests
with Seahoard Air Line was contemplated,
met disclaimers.
The continued ease Of the money market
was an influence in driving the shorts 10
cover. as 1t was expected that there might
be furry in money incidental TO the lie
mand to carry over until next Mondry.
The banks report gains of cash from the
interior since last Friday and their account
with the suhtrcasury about balances But
the general conviction Is that further large
loans have been made In the absence of
nending financial profits and that the week
~ bank statement VIII show further
contraction of the surplus.
The bond market was dun and irregular.
except for an acute demand for Wabash
dcbentures Total sales, par value. So
10000.
Prices of stocks have worked downward
during the past week and speculative sen.
timent has taken on conservative tone
The disposition has been generally to lessen
speculative burdens ms precaution against
any unfavorahlc development in the situa.
ton. The continued heavy nronds max
Ing upon money market resources by the
financial operations incident To the recent
railrond consultations and the fear rnnT
the financing of the steel merger would
strain the available resources &c the money
market, have been the underlying causes
Of the rcactionnry tendency nj mi az
The decision TO close the stock exchange
from Thursday afternoon until Monday
morning added to the inclination Of opclat
ors to close mp accounts as the possibility
or accident during n prolonged Interval
in the trading is always taken nccuuht OF
Only the less Informal element among
the spectators have shown nm opposition
to the prevailing tendency of the market
aud their occasional efforts to turn priccl
upwards have not met with success. TIL"
most potent interests in the financial world
have made II clear that they favored a
Quiet stock market for the present. This
they accomplished not only nv discontin.
ming their recent heavy buying Of securi
ties. but ny meeting any attempt to nd.
vance prices by free offerings The dc.
cline has not been prccipitatei ut any
lAlhN anu luP b'uTS nave NOT Dppn hold
aggressive. Probably this Is also In nc.
cord with the desire of the large financial
interests which are concerned in ncrfectiny
me gigantic steel merger. ms thcy have
been In the most important recent railway
constructions. dcmoralized stock mar.
ket would interfere with pending financial
projects MS much MS unbridlcd speculation
for the rise There were many signs to
show that the community of interest ihei
has not lost its attraction for tho spocu
lative public. 1t is highly probable that
dow Alp,N
attract Il renewal of the upward movement
OF prices. hut in the absence of actual
developmcnts tho opportunity for consider,
alton and appraisal of results achieved Inv
the recent combinations have had n some
what Christening Influence on the cxcnsa
or speculation. The fact stands out rather
ciemrlv mat Tue most important of those
combinations have In manner been forced
nv the threat Of circumstances which
would have worked damage IN the infer
ests concerned They were made necessary
oven 70 assure the status ouo Thus rho
great PENNSYLVANIA Coal company purchase
was deemed necessary to avert the threat.
rheu construction of new coal railway
10 tide water, which would. have diverted
Tue anthracite tonnage of the so-callod In.
dependent operators from the present an
thracltc carriers. Again the merger ~ IN,
great steel combination was nrpcinitntcd
bY the measures In hand To establish Now
comnetition among them which Threatened
nlsastrous trade war. The contributors
FORMED two wears ago have hqnn moviN,
In the direction OF control Of tbnt, own
sources OF raw material TINS leaving tho
old established Carnegie company withont
market for all Of its product of raw
material. The vigorous measures taken hv
tnat company to make up its own mnterjoI
INTO various forms Of Finished nro,Iucts
nreclnltated an interesting crisis. which II
| is the primary object Of the proiectca
merger TO avert. On tho basis of tho nres
emit business and profits of the steel COW.
panles and tho railway companies con
cerhed IN the recent consultations A. ,s
clear prices pnid to hiring them info h,r
monious control are high Additional ann
ltal issues have been necessary 10 nrovido
purchase money and charges ahead ~ III
Claims OF the stocks for dividends boyo
thns been increased The problem Of meas
urlng tho benefits to accrue 70 these CON
pahles from harmonzed control. nossIhIo
economies OF operation. Increase OF hns,
ness etc; To meet the Increased chnrgis
mr canifal account Is a most abstrnsa one
me price reached hv the stocks I'm no
omen market In the period OF the closinr
} OF me deal is clearly not reliable meas
urs OF the new value attained Fvcu tho
p.iee haid Tor large blocks ~ the stoei,.
~ private sale hy the canitaTists tnrn,lrr
|, .ur continuation In order 10 comnIotc Cow
n nh uiay nave to he avoided with tn,
nricss Of stocks acquired nj a mech iiower
ievel during long-continued ra1Ind onasI
.i"hs ~ administration arc alao In,nor,nrt
" SHOWN N the lively lntorest IN tha -,