The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-11-16
FINANCIAL AND COMMERCIAL.
SATURDAY. Nov. 1

on so large a decline in prices. brought
about . rally In the security market to-day
London prices came strong and the marke
here opened at a decidedly higher range
Then 1t sold Of sharply and again becam,
strong. closing at advances Of from ! to
points In the stocks chiefly dealt In. Thu
ceiling pressure IN St. Paul, which hal
served moro than any other one acute force
20 break the market in the last few days
ceased The stock did not however. rally
with vim, and good observers thought that
It still acted peculiarly. The theory found
favor in some quarters that the remarkable
decline in price Of the security was due
20 sales Of treasury stock by members OF
. pool to whom this stock had been pri.
vately sold. Such a theory, however, IL In
utter variance with the conservative policy
which has always sctuated the St. Paul man.
asement IN its issue Of treasury shares, az
well as with the established financial pru-
dence Of the interests into whose hands
these new shares would necessarily fall. and
the assignment OF such a reason. therefore.
for the fall in the price OF st. Paul is to be
thoroughly discreditei. The best explains
ton for the drop seems a. 1t has seemed
in the past, the enforced sales Of stock by
AfRA sI)"cuid'iNe nOlt1"rS. NtNeTdl 'Nf"- ~
has looked a. though these sales were COM
plsted. but they appeared again In even
greater volume than before. There is hence
scepeicism regarding the conclusion that
they are over now. II is fact that an opera
tor In an adjoining city, whose eccentric
conduct and clashes on either side OF the
stock market are always the subject OF
much gossip. recently found himself in a
rather tight place, and there is no doubt
that party Of bear operators on the Stock
Exchange here have been, as the technical
phrase runs, cunning for him. 1t Is also
true that such assistance has been given to
this operator that ne e able. at least tempo.
rarily. to confront his enemies undismayed.
A good deal Of interest in the market In
strictly speculative sense now naturally
centres around the status Of the pool In q
leading railroad stock. IL is generally a.
sumed In the street that a minor and outside
pool In this security has entirely liquidated,
and there is substantial reason to believe
that the large original pool has been broken
into to this extent. that some Of the parties
TO 1t have taken up their respective holdings
and disposed Of them In the market. 1t Is
probable that the pool. while not intact,
has not been dissolved. 1t Ia extremely
doubtful IL the story to which wide currency
was given this morning, that the Union
Pacific Railroad management had so added
TO its holdings Of Southern Pacific stock on
the market decline that II now Possesses Q
clear majority Of those shares, has any basis
whatever. The Union Pacific holdings In
Southern Pacific. as shown by the Union
Pacific report. just Issued. amounted to
1900 900. 30 that the investment Of %, 0co.-
900 more is required to give the Union
Pacific company clear majority Of the
stock. 1t is believed to be the conviction
Of the Union Pacific directors that the
investment already made in Southern
Pacific is quite sufficient to assure control
Of that property and that there Is no nsces-
sty at present to expend any more money
for such a purpose Strong stocks in the
trading to-day were AmalRamated Copper
and Brooklyn Rapid Transit, the strength
Of the former probably having some refer
ence TO the fortified position Of the out of.
town operator above referred to- Brook
lyn Rapid Transit has been steadily bought
during the last few days by insiders. and
II Is not probable that such buying would
take place II those connected with the
property believed that the market position
OF the STOCK was imperflled.
The bank statement. showing q decrease
In loans Of only Ss.0ss. 400 and decrease In
cash OF ti.lS9, 100. was not, on It's face,
favorable. But the statement obviously
did not show the entire liq,h iation In the
loans Of local Institutions that was effected
In the closing days OF the week Moreover,
"a has been heretofore stated IN this COL
umn. the fall In prices during the week
served TO reduce, chiefly, the loans Of coun-
try banks. and this reduction does not show
In the bank statement issued hero any
more than the increase Of loans was chroni-
cled there which occurred In the giddy
speculation Of the summer. Many we'll
informed persons believe that the engage
ment Of large SUNNI Of money at the Sub
Treasury here for transfer to San Francisco
was for speculative purposes. Such Is
undoubtedly the belief Of tho Treasury
Department. But In some cases. at least,
transfer was asked for by reputable bank
ing institutions on undoubted orders from
their San Francisco correspondents, and
In those cases there u no reason to doubt
tho genuineness Of the Transaction. Ster-
ling exchange WAS stronger during the day,
although Saturday Is dull day In the
exchange market; and London exchange
on Paris fell y centtme to Is francs NIX
confines. Berlin exchange also declined
We are thus on the verge Of gold exports.
although the consensus among dealers
IN foreign exchange IL that the time when
these shipments will begin Is very uncer-
tain. The banks here continue 70 lose
money to the ub-Treasury. and doubt is
felt a. TO whether the return movement
Of money from the interior has really yet
begun.
Taking everything into consideration.
the financial situation at the end OF the
week can only be described as mixed. The
borrowing demand for stocks at the close
Of business was diminished, and while
traders generally went home believing that
prices on Monday would be higher, few
Of them were willing to venture the opinion
that 1t was time TO buy stocks for decided
advance. Most professional operators will
probably sell their long stocks on a small
rise. Speculative confidence Ia now at a
lower ebb than at any time in the last Ave
years. n the present month was April
rather than November. experienced opera
tors would be inclined to be much mors
hopeful In their views than they are. All
of them recognize that the December set.
Elements are approaching, and the talk is
general In banking circles that the most
that the market ought to look for are quiet