The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-11-11

prices had the result of spreading a
wave of doubt all over the country, so
that the. wires brought into commission
houses a large accumulation of selling
orders to be thrown upon the market
Many commission houses also had sent
out notices to customers that they must
widen their margins or sell their hold
ings. The bears also were active in
raiding the market to uncover stop loss
orders. The dissemination of a rumor
of j. p. Morgan's illness was traceable
to the bear element and was promptly
denied and followed later by Mr.. Nor
gan's appearance at his office. The
troubles of one of the newer trust COM
panies over it's holdings of securities of
one of the newly formed combines, which
were ventilated on Saturday, seemed to
have been taken quite seriously as an
object, although not regarded as impor-
tant in themselves. The fact that 1t
was found necessary in effect, to under
write an underwriting syndicate was re-
garded as a rather typical example.
The refusal of foreign subscribers to pay
their subscriptions to the syndicate was
advanced as the cause of the condition,
of the enormous expansion of bank
credits has gone towards the underwrit-
ing of new securities With this large
transfer of credits into fixed capital has
come the growing appreciation that
there is slow market for these new Sc
curities at home, while foreigners show
no disposition to take over the new Sc
curities even where they have lent money
to the syndicate promoting them. The
issues Of new bonds on the security Of
stock, both railroads and Industrial
which have been purchased for control
at very high rates, runs into the bun
dreds of millions. The Saturday episode
is evidence that not all of the ventures
have prospered. The fact that large
loans have been made on many of these
new securities, while their prices have
received artificial support in the mar
ket. sometimes with the proceeds of
these loans, is making growing i'm
preston on public sentiment. The pro-
cess which went on in today's stock mar
ket goes to cure the evils in the situa-
ton, both in reducing the volume OF
credits and by bringing the price level
to a substantial basis. 1t is felt that
the year-end demand for money the
world over must be prepared for. 1t is
evident that only sustained money rates
in New York will prevent the heavy
outgo of gold. Sterling exchange was
somewhat lower today, but was offset
by sharp drop in sterling at Paris.
Money here also was firmer. The Sub
Treasury is again taking large sums
from the banks. The most important de-
velopment in the money situation was
rise of ten cents premium of New York
Exchange at Chicago, indicating in
measure the turn in the money rates in
the interior. Prices at the low level
this morning were generally from to
over points below last weeks close.
The late substantial recovery was helped
by rumors that a settlement, had been
secured of the demands of the Chicago
freight handlers.
Bonds were not so much affected by
weakness as stocks, but their recovery
was also less marked. Total sales (par
value) Sb1S0G00.
United States rs and old As declined
u per cent on the last call.
Total sales of stocks Today were 1885,
500 shares, including Atchison 7S,600;
Atehison, preferred, 1900; Baltimore
and Ohio, 76,6O0; Canadian Pacific 35,
100: Chesapeake and Ohio, $4,000; Chi
cago Great Western. II $780, Erie. 81 900:
Illinois Central, 5000; Louisville and
Nashville, 1890; Manhattan, $4,000;
Metropolitan, $500; Missouri Pacific
101 500; Missouri, Kansas and Texas,
6. 900; New York Central, 20,600: Nor
folk and Western, 45,S0o; Ontario and
Western, 10000; Pennsylvania, 1890;
Reading, $4,000; Reading, second pre-
ferred, 10000: st. Paul $4,000; South
ern Pacific, 81, 100; Southern Railway,
80, 300: Texas, $500: Union Pacific, 3d.
500; Wabash, preferred, $500; Ameri-
can Smelling, $500; Copper, 1880;
Brooklyn Transit. 7,400; Colorado Fuel,
1920: Sugar, 43,600; Tennessee Coal and
Iron $500; United States Leather, 500;
United States Steel S1,450; United
States Steel, preferred, $1,000.