The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-12-20
FINANCIAL AND COMMERCIAL.
FRIDAY, Dec. 10.


The advance in the security market
halted slightly to-day. Few observers OF
experience expected that any such rapid
pace as that set yesterday could he main
tanned nor would they desire 1t to be con-
tinued even IN it were possible. The market
is in no condition at present for anything re-
sembing an -outburst' Of speculation for
the rise. The end-of-the- year settlements
still await and bank reserves still need re-
enforcement. Every precaution has been
taken against possible trouble that may
arise in the few days approaching. when
a great amount Of cash will he temporarily
locked up and it II the belief of those
who are best informed in the financial com
munity that not only are the chances Of
such trouble now reduced to minimum, but
tina, the low prices" have been seen and
that month or two months hence the
range of quoted values on the Stock Ex-
change will be much higher than it il to-day.
Patience, prudence and conservatism on the
part Of market operators az the present
time and in the immediate are future, how
ever, imperative
The news from Venezuela is still little
clouded in the sense that a definite settle
ment of the difficulty is not yet In sight and
may not be in sight for some time TO come.
The market was a little disturbed to-day by
rumors from Washington that new bitches
in the affair had arisen. Nevertheless, the
one thing that is clear is that everybody who
has any real say in the Venezuelan matter
il anxious to avoid trouble. Common sense
rules in diplomacy as in other things, and
the matters involved in Venezuela are not
worth anybody's quarreling over. News
affecting the stock mar ket to-day was gem
orally favorable. Call money continued
easy. although the demands OF this nature
on Friday, being for the purpose of supply
ing commission houses with funds for three
days, are heavier, normally, than on any
other day in the week. The rates for the
Use Of funds on time further relaxed. Money
was offered in abundance in Wall Street for
0 per cent. for all periods. and. to certain
houses, even at lower rates. This fact in
itself would seem 10 preclude the idea that
there can be any squeeze to amount to
anything before the end Of the year. Sterl-
ing exchange again declined. A very large
export business in wheat was done. Fore
casts of to-morrow's bank statement were
awaited with great interest during the day
for the purpose of discovering whether the
return movement from the interior to this
centre noticed last week was still in evil
dence. Estimates showed that the local
banks had gained on balance from the
interior cities during the week nearly
$2,250.OO0 II is perhaps too soon to conclude
definitely that the much desired retirement
Of funds has indeed begun. but the figures
as given certainly indicate that such il the
case. The losses of the banks to the Sub
Treasury reduced their net gain in cash
for the week to s61i 500. 1t is possible that
part of the annual though brief with
drawal Of funds from deposit institutions
for Christmas purposes will he observed
in the statement tomorrow of bank con-
ditons Nevertheless. all preliminary
indicia are that the statement will not,
at least be a bad one. Another matter
that is justly exciting optimistic views
of the future of the market is the knowledge
of the large sales of bonds recently made
by bond houses and syndicates in this coun-
try to foreign investors. 1t now develops
that Of the Pennsylvania Railroads recent
issue of 1900 900 in car trust obligations
over two-thirds was taken by English
and Continental buyers. A large majority
Of foreign holders of the old first mortgag
bonds of the New York Central railroad
now in process of refunding have agreed
10 take the new "a per cent issue. Beyond
this. foreign bankers have also bought still
larger quantities Of gilt edged investment
securities, of which revelation will in due
time be made.
The market closed irregularly, some
stocks showing advances and some de-
clines The fact that the Bank Of England,
though still keeping its formal rate of dis.
count of per cent, was yesterday charging
"a per cent. on many loans, was regarded
here as indicating that the Bank had
found it necessary at last to protect it's
comparatively low reserves against the
falling exchange market in this city and in
Paris. Sterling exchange here has dropped
over three-Quarters Of per cent in short
time, and such action as that taken by the
Bank Of England yesterday will naturally
tend to harden it. Gold exports from this
country are not now expected before the
end of the year. The policy OF those who
have most ably and successfully dealt with
the matter has been to delay these exports
until after the first of January or until
such time "a money returns here from the
interior of the country. There Is no doubt
that this policy will be continued and that
we will ship gold to Europe in January or
February: that is to say. at time when we
will have plenty OF money to spare for the
purpose.