The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-12-17
FINANCIAL AND COMMERCIAL.
TUESDAY, Doc 10

| day veered strongly toward the PROPOSE
| ton that, barring any further aggrevation
| Of the trouble in Venezuela, the market had
| passed through the most critical part of
| its period of stress and that q gradual
/ hardening in prices should he looked for.
| The chief factor influencing this conclusion
| was, of course. the action taken by the
banks yesterday in announcing their de-
| termination TO put $50. 900 600 in the money
| market should any contingency arise re-
| curing its use. This action does not mean
that any great amount of money ls to be-
| brought to this centre from other places
| or that the present resources of the banks
can be In any mysterious way suddenly
enlarged II simply means that the banks
| will, if necessary. encroach upon their
surplus reserve fund in order TO prevent
| anything like stock market disaster, and
| indeed it would only he necessary In order
| to accomplish this for the members Of the
| Clearing House Association to take advan-
| tage of the permission recently accorded
! hem by the Secretary of ths Treasury.
but Of which they have "a yet declined
to avail themselves. namely. TO exclude
Government deposits from those deposits
against which reserve fund must be held.
With the leading financial institutions OF
inc CITY UNANIMOUS III 'flS
the unwilingness Of many investors TO
buy stocks at the present low figures for
fear that a great gulf might open in the
market before Jan. 1, naturally disap-
pears, while for the same reason bear opera
tors will he apt TO conclude that chances
Of profit for their enterprises have largely
lessened.
The market to-day at the outset was dull
a 81
range Prices slowly rose until many
notable gains were recorded. London
houses continued to buy stocks Rates
for call money ruled below q per cent.
most of the day. The statement Of the
transactions Of the banks with the Sub
Treasury showed loss by the banks since
Friday Of only $5s9,OOO. against s.. 5s4 900
for ne same period last week. and New
Yo exchange still commanded a high
premium in the country cities. Sterling
exchange was much weaker. just before
the close Of the market dispatches we're
printed from Washngto on, stating that our
Government had requested the Govern
ments of England, Germany and Italy to
arbitrate their difficulties with Venezuela.
and declared that il was rnmored that
Secretary Hay had protested 70 England
naval commanders in sinking the vene-
zuelan ships and bombarding Venezuelan
ports. Bear operators regarded all this as
complicatng matters. asserting that it
was very doubtful if England and Germany
would receive these representations of our
Government in an amicable spirit. They
therefore vigorously attacked the market.
circulating also a story in the last few min
q ,raJiny thot IL.
had been ordered to Venezuela, and az a
result Of their efforts a good share Of the
general gain made in the previous part
of the trading was lost. Most active
stocks. however, closed at advances 1t
seems proper 10 remind SPECTATORS
and investors alike at this juncture
that the complexion Of news from Wash
ington on such occasions as the present IL
invariably cast with what may be called
professional gloom. The correspondents
of many journals are on the lookout for
news Of sensat ional character only and
prefer To send such news rather than nfor-
nation Of a reassuring nature. Probably
no one is better informed as to what may
be expected of the British and German
Governments at the present hour than the
heads of the great foreign banking houses
III lIl- tllN tTbNt WIN ueTTndn
CONNECTIONS These gentle men said yes
torday that the idea Of any serious trouble |
between F., gland and Germany and this
country over Venezuela was in the last
degree absurd.
The strongest stock on the list TODAY
was Southern Pacific This is a security |
which in more ways. perhaps. than can be
properly disclosed has furnished a kew
L., a, . L.
for two months past II is well known |
that there We're two pools formed for n |
bull campaign in Southern Pacific Ono
of the pools was a very large one and had |
accumulated over 100000 Southern Pacific |
shares The second pool was much smaller,
and II has now entirely liquidated its hold |
ngs. presumably az loss. In the case |
of the syndicate first named a distribution |
OF the shares was made to its respective |
members. Each member agreed TO sup
port his quota of shares In the market and |
furnished to the syndicate manager the
numbers ~ the stock certificates he thus |
contracted to take care Of This written |
syndicate contract still holds, but large |
number of the members Of the syndicato |
were unfathful to their agreement, and.
when the money market became tight,
shares that they had agreed to protect or |
made short sales Of stock against the shares |
in their possession, The interesting ouee- |
ton therefore presents itself, interesting
for obvious reasons to Wall Street in gen |
erGl and in very acute and uncomfortable |
way to the recreant members of the South |
ern Pacific syndicate, suppose the syndicate |
manager Al any time now, as is clearly
within his right and fully within his power. |
should demand the return TO him OF the |
certificates Of Southern Pacific stock which |
he parcelled out n few weeks ago. OBJ
viously, there would have to be a rather |
sudden buying back of Southern Pacific
shares 10y gentlemen who had parted COM
psny with them; and there is always the |
grim possibility on such occasions that
the buying may not he a process easily &C. |
complishcd
New York Stock Exchange Sales Dec "a |