New-York tribune., 1902-10-18
BONDS.
THE DAYS OPERATIONS N STOCKS

THE DAYS OPERATIONS N STOCKS.
The cheerful feeling induoed during the last
day or two by the practical assurance of the i'm
mediate ending OF the anthracite coal strike was
intensified yesterday by the announcement that
the Secressry of the Treasury had purchased
Sl5.000Q00 OF bonds. the inference being drawn
by speculative Wall Street that the So, 100000
OF money 20 be- disbursed by the Treasury in
payment for those bonds would become avail
able the basis for new and extensive eX-
pansion OF loans for stock market operations.
And so the market opened higher. with a strong
buying demand, apparently on foreknowledge by
some important operators Of the result Of the
bond syndicates negotiations with the Secre-
tary, and maintained its strength and activity
during the day. Heavy profit taking in the first
hour caused a recession, hut the buying pressure
soon effected resumption Of the upward prog
ress. The London market closed with decided
strength in Americans" fact which aided in
maintaining the rise here. Can money was a
little easier than on Thursday. the rate ranging
between Z per cent at the opening and > per
cent al the close. The anthracite railway shares
had only fractional net changes. There were
evidences Of a revival OF the tactics employed
during a period Of market activity two months
or so ago by a well known group of Western
bulls who would take up stock and give it
whiri' for three days. and then pass on
10 another promising subject for manipulation.
Baltimore and Ohio was among the issues said
10 have been taken in hand by these interests
yesterday; il closed 3s points higher than on
Thursday Pennsylvania also made a substan-
tial net gain OF nearly two points heavy
trading. Norfolk and Western. Of its soft
coal controlled lines exceedingly active,
and advanced II. points. its net gain however,
being only one-fourth of l per cent. ST Paul
had a sharp advance Of nearly four points on
the fact OF its traffic arrangement with Union
Pacific Missouri Pacific closed with a net gain
Of more than TWO points the heavy buying OF
A this stock being based on the denials from high
sources that any friction between the Gould and
Rockefeller interests had resulted from the act
Of the ST. Paul management in making a traffic
agreement with the Union Pacific. TO the ap-
parent exclusion OF the Missouri Pacific The
report was revived, too. that the absorption of
the ST. Louis Southwestern 10y the Missouri Pa
cifc was al hand, and the common stock Of
the Cotton Belt gained la points. while the
preferred advanced AS The market closed
strong, with last prices at the best Of
the day.
AS far as any forecast of the weekly bank
statement can be Yentured-for in those state
nnents effect does not always follow cause-it
will probably be found to-day that the banks
have made a small net gain in cash during the
week Whether or not the heavy contraction of
loans incidental 10 the severe liquidation earIf
in the week has been counterbalanced by the ex-
pansion reflected in the wide and rising market
of the last two days cannot be more than
guessed at until II 30 this morning But even
IL the showing made by the bank statement
should be unfavorabe. that fact alone will not
chill speculative enthusiasm and moderate
speculative fever-for is not S2l 100000 of new
money coming into the market What can
keep the great bull pools from riotous excesses
and save the money market from another alarm
ing crisis however, is the conservativelv exer-
cised power Of the banks. The existence Of the
great short interest in sterling makes gold i'm
portations impossible at present The flow of
money from this centre TO interior points IS stiU
"a progress, and the current viii not be reversed
Tor several weeks. The local banks have greatly
strengthened their position by drastic loan cur
tsilment and they are now TO be enabled 10
strengthen II still further by the addition 10
their reserves OF many millions OF cash II
they continue 10 make their loans at moder
ately tight money rates they will aid powerfully,
IN strengthening and steadying investment
values and show a purpose OF cooperation with
the Secretary Of the Treasury. whose announced
reason for buying the Sl5.000000 bonds was the
realization that the banks generally throughout
the country and not primarily in New-Yorl
CITY, were deficient in cash reserve