Evening star., 1902-08-22
FINANCE AND TRADE
Easy Money Sustaining Fea-
ture in Stocks.
DANGER OF REACTION
SOME DEMAND FOR LoNG-NEG.
LECTED INDUSTRIALs.
The Leading Railroad Shares Were
Fairly Well Bought by Pools
Backing Them.
Special Dispatch to The Evening Star.

Special Dispatch TO The Evening Star
NEW YORK. August 22.-Continued ease
In the money market loans over until Mon
day being made under per cent, helped
to keep prices firm in todays stock market
without materially increasing the volume
of legitimate business. Tomorrow's bank
statement should be an Improvement on
that of last Saturday. but the early gains
from the subtreasury have been materially
reduced by the increase in customs pay
ments and the 100000 gold taken for ex-
port.
The market rallied on the prospect OF a
better showing. however, and there is no
longer any effort to disregard the fact that
the money rate and the condition of the
banks will dominate prices from now on.
Active money is reasonably certain aud
activity In this direction must retard an
advancing market
The trust companies have been helping
TO keep the money rate down during the
present week, but easy money must be
regarded as artificial condition and not
the result of abundant funds or of con-
fidence in an early passing OF present con-
ditions. High priced stocks paying the In
vestor small returns and costing the trader
almost double the amount received I'm divi-
dends are regarded especially vulnerable
at this time. Yet 1t is I'm this group of
stocks that the most important internal
developments are expected.
If the new developments include new Sc
curity issues the money market may show
some sudden changes which viii sea arceiy
operate to the advantage of the main condI-
tiOn. Conservatism is increasing and
strangely enough a preference is shown for
certain of the better industrials which have
not been exploited quite so vigorously al
the railway issues.
The steel stocks were strong throughout
the day and some of the older industrials
were we'll bought by commission houses
Republic Iron and Steel and Tennessee Coal
made noteworthy gains. Colorado Fuel sold
down sharply during the morning. but ral-
lied over per cent later IN the day, Gates
brokers' said they were buying no stock
and attributed the advance to short cover
ing. The hard coal shares were strong un-
der good demand from sources not recent
ly active.
Ontario and Western was active under
buying said to be for control, but just who
was the purchaser was not disclosed. Read
Ing was strong under buying by the inter
eStS credited with large accumulate dur
ing the summer The street argues that
the coal strike must be speedily settled IL
the promises of the usual seasons supply
are to be fulfilled.
The pool in Southern Pacific advanced
the price of that stock to 20 during the
afternoon and kept IL firm at that level.
Union Pacific advanced in sympathy and
there was substantial rally IN the general
list during the last hour. Traders bought
back stocks sold earlier in the week and
were credited with forcing the advance
! The volume Of commission business did not
increase and sentiment somewhat
mixed.
There were no unfavorable developments.
! but the lack of some positive incentive was
noticeable and led to some profit taking on
| the rise There are fears of a reactionary
| market, but there is no organized effort in
that direction. The mere onesidedness Of
the situation is one of it's chief weak points