New-York tribune., 1902-01-15
BONDS.
THE DAYS OPERATIONS IN STOCKS

The stock market weak IN the greater
part Of the day, with net losses in the majority
of issues at the close. In the more active stocks
substantial declines were recorded. although
the downward movement was not accompanied
by important liquidation. The decline Of the
last three days has naturally forced certain
amount of commission house selling, but, as a
rule. transactions have been made up Of the
operations of professional traders. In view of
the loss in values in the last few days and the
strong position which stocks occupy regarding
conditions affecting their actual worth, the
downward movement has evidently about
reached its limit There is undoubtedly a
large uncovered short interest in the market
Stocks are in good hands. and whenever de-
Inand from the shorts develops sharp advances
should take place. Good advice does not sug
gest short sales at the current level, while. on
the other hand. conservative opinion encourages
the purchase of securities at present quotations
and on all reactions.
The decline yesterday was not based on any
news development. The handiwork Of profess
sional manipulation, however, was noticed
throughout the day. report that the Erie
Railroad would issue bonds to the amount OF
5000 900 was circulated in the early dealings
and, as e consequence, the Erie stocks were
rasiIy depressed while the bear element had no
difficulty in causing declines in all parts Of the
list. AS the Atchison company has just issued
S3O000000 OF bonds the report that the Erie
would also increase its mortgage Indebtedness
naturally caused some uneasiness among hold
ers' of railway stocks. Regarding the Erie re-
port it may be said official authority that
the company has no intention of issuing
bonds This report came from Washington
evidently rejecting the desire of Southern
Epeculators to cover their short contracts. The
demand for first class securities is indicated in
the sale Of the Atchison bonds which have been
taken by a good class OF investors 10 the full
amount of the S30000000 issue. In the local
bond market trading has been heavy IN the last
few days, representing the reinvestment of Janu-
ary interest and dividend payments. The ac-
tivity in bonds has received no recognition in
speculative circles but the chances are that
within short time the buying OF railway
mortgage issues will be followed by an active
demand for railway stocks. The decline in yes
terdays market carried prices for the greater
number of issues many points below their in
trinsic worth
further reduction in the price of sugar and
the recent cut in the price of copper We're used
as bear factors in yesterdays trading. All the
sugar companies reduced the price of refined
sugar, owing to the low price Of the raw product
and the overproduction existing in the sugar
market in all parts of the world The decline
the companies 10 ADJUST prices to legitimate
trade conditions. The position Of sugar and
copper is not a real bear factor on securities in
general. The money market again showed com
parative ease. while no engagements Of gold for
export We're reported The foreign exchange
market suggests small shipments of gold 10
Paris this month. 1t is not likely that gold ex-
ports will affect the money market, the
movement of currency is now heavily in favor
of this centre In addition to the large receipts
Of money from the West, the local banks have
gained upward Of $1,000.000 b-Treasury
operations so far this week. The money mar
het is not apt cause further trouble in Wall
Street for many months to come Commission
house business in stocks continues exceedingly
light but il is generally believed that a better
demand fer securities will soon develop. All
factors governing the actual worth Of invest
nents are in favor Of higher prices, and when
the so-called public finally realizes that business
and financial conditions to remain active
and prosperous throughout the year heavy buy
ing of stocks will develop.