The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-12-12
FINANCIAL AND COMMERCIAL.
THURSDAY, Dec. IL.

THURSDAY, Dec. II.
The security market to-day wis active
: and weak to the point OF decentralization.
The rise in call money rates TO 0 per cent,
| the fact that per cent. is now bid for time
money for periods less than six months
and that the supply Of the desired funds
is 80 small that arrangements for the loans
rest upon no uniform basis, but are matter
for individual negotiation in each instance.
and the unexpectedly serious character OF
the disturbapces In Venezuela, were all
assigned IA reasons for the fall in prices.
Nevertheless. the acute weakness was due
10 the fierce attack upon values made by
the large professional room traders upon
the discovery that the market was full Of
stop orders and that stocks were much
more weakly margined than common re-
port had made out. From time To time
during the day the bearish operat ors paused
in their efforts and covered their short
contracts. 80 that on many occasions the
market actually became dull; but the onset
was as often renewed and was each time
successful. One of the most dsuuieting
incidents was the sale of 900 shares of
the stock of the National City Bank at 200.
A small quantity If this stock sold at the
same price yesterday. which was slight
concession from the price last recorded.
What attracted attention, of course. was
no, tn decline in price, which was insignih-
cant, hut the large amount of the stock
sold. The legitimate inference from the
transaction was that some one. presum-
ably some enc of more or less import
ance in financial way. was in need Of
money and had been forced TO realize
upon high-cass Investments.
II was. in fact. generally understood
that the stock was part of the collateral
held by one of the largest houses in the
Street as security for a customers ac-
count. and that the sale meant simply
a case of exhausted margin, The stock
was bought 10y interests connected with
the City Bank The heavy selling OF the
Steel stocks, whether IL was the work OF
bears or not, was another factor that made
for lower prices in the general list. While
the preferred stock Of the United States
Steel Corporation has largely passed into
the hands Of investors. great quantity Of
the common shares still stands in the names
of Wall Street commission houses. and
both ISSUES are carried on margin in the
street 10 "A greater extent than any other
security. Fluctuations in their price there
fore, exercise the strongest influence upon
the general market. Louisville and Nash
vile was weak on the official statement
of those now in control OF the property
that the present dividend on the shares
will not 5000 be- increased, Statements
TO the contrary have been constantly cir
culated in the financial community for
month past, but those who have read this
column. az least. have had no illusions
on the subject. There were many other
features of the trading which indicated
that hlEh-grade stocks and bonds were
being sold for the purpose of protecting
market commitments. All this was natur-
ally interpreted by the room trading ele-
ment as a sign of market weakness, and
they were encoura ged to sell stocks freely
Some stocks were notably ~ rong by COM
parison during the day, among them Ameri-
can Sugar Refining, Brooklyn Rapid Transit.
Amalgamated Copper and the Reading
shares. Sugar stock actually showed
net gain. A rally was in progress at the
{ lose of the market which left most of the
leading stocks decidedly above the lowest
figures touched by them. At one time
most Of these stocks had declined from
10 points; the final figures showed de-
clines OF less than points, The prices Of
stocks. as a whole. have now fallen over
points in two days, and have reached a
lower average than that to which they
sunk on the market break a month ago
In view of this fact and of the thoroughly
professional character of the trading. a
sharp rally in prices might be expected
Many traders in the last hour of business
We're inclined to cover their short con-
tracts and buy stocks for a turn" but
were deferred bv the still Clouded aspect
of the money situation and by the knowledge
that commission ouSes must make their
loans tomorrow for over Sunday. that IL
10 say, must borrow for three DAYS ahead
This renders il likely, Of course, that money
will be more in demand tomorrow than Il
was to-day and that higher rates for its
Use may then have 10 be paid. The Bank
of England did not raise it, rate Of dis
count to-day and made a stronger state
ment Of resources than was expected
while the first Government report Tor the
current year of the condition Of growing
grain showed that crops we're making
magnificent progress. But little attention
was paid 10 anything in the Street to-day
except the quotations for stocks them
selves as they fell from the tckers.