New-York tribune., 1901-02-22
THE DAYS OPERATIONS IN STOCKS

stock market trading exhibited a further fall
ing OF in the volume or business as compared
with recent heavy dealings. After early irregu-
larf,v and several sharp declines in various
rarts OF the list traders began 10 cover, and un-
der the influence OF their buying the whole mar
Ret rallied, with the strength well maintained
until the close. Uncertainty over the steel deal
was a powerful factor IN shaping traders opera
tions. Few spectators cared 10 so home over
the three day holiday short OF the steel shares
as II was generally believed that the ofhciaI
consolidation plan would be published before
Monday. Traders assume that the plan will be
a big huh argument on the steel shares, but
there are some cautious operators who assert
a firm belief IN the theory that the issue OF new
securities under the plan viii cali for so much
capital that heavy liquidation OF existing securi-
ties viii be a necessary accompaniment OF the
operation People who are afraid OF bad results
from the creation OF many new railroad secur1-
ties have been selling railroad issues In the last
few days and doubtless there win be considera-
BILE selling Of industrial issues concerned in the
steel deal for similar reasons. The fact appar-
entity is lost sight OF that the greater part OF the
new securities issues win merely take the place
of stocks that win cease 10 figure IN the supply
OF securities available for speculation
II may be said without fear OF contradiction
that many people who recently have sold low
priced railroad stocks have reinvested their
funds IN the preferred shares OF sound indus
trial companies and IN cheap but attractive
railroad bonds. The sellers OF the low priced
railroad shares acquired their holdings long
time ago, and the opportunity 20 secure good
profits has apparently not been lost sight OF.
In buying solid preference issues OF Industrial
companies especially OF companies that have no
bonded indebtedness, as. for instance, the Amer
team Car and Foundry Company, investors OBJ
tain securities the yield OF which averages from
= 10 10 per cent. With the countrys prosperity
founded upon sound conditions. it is not sur
prising that many cautious investors are willing
10 buy the industrial issues despite the fact
that some people are opposed 10 industrfsls as
investments solely account Of the stock ma
nipulation OF managers OF certain indus
trial concerns The safe industrial stocks repre-
sent companies that not handled by stock
market gamblers. Conservative investors gen
orally find out something about a company
before buying its securities, and wise specu-
lators viii find Il profitable 10 do likewise. In
railroad bonds the per cent issues are in de-
mand, and wherever . per cent issues are Of
fered buyers are readily found. There are few
offerings OF 3 per cent bonds at cheap prices and
when safe bonds. such as Southern Railway 5s
or Alabama Midland 5s come on the market
rs are among the attractive bonds that are
quoted under their actual value. The SeabOard
Air Line will doubtless eventually pass into
Southern Railway hands, and the Plant Line
roads VIII probably he found in the same COM
pany. Bearing this In mind much higher prices
may reasonably be expected for the various
securities concerned.
The local money market was favorable 10 bun
speculation yesterday. but It failed 20 attract
any general response IN com mission house cir
cles. Ease IN money rates Is based on the pres
ent supply OF funds which may, Of course, be
considerably lessened in the course OF the next
few weeks. Changes for the trent week in
hank cash holdings however, ought 10 show a
moderate increase, but II loans show a heavy
expansion reserve above legal requirements viii
again be reduced. The apparent gain in cash
IN the week is about S2.SO0oe0. Foreign bank
conditions are growing easier, reflected in a
further reduction in the Bank of England's
minimum rate OF discount. and ITS increase in
reserve. Call money lent low Ia per
cent in this city yesterday.