The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-12-18
FINANCIAL AND COMMERCIAL.
WEDNESDAY, Dec II.

investors In conservative banking institu-
| tions to-day was that established secur-
| tiles were now a purchase on any recess
| sion In market prices worthy the name.
| Usually when such advice In given the
next thing that is heard is that good stocks
| should be bought anyway. The only
! cloud hanging over the market is that OF
the little storm centre around Venezuela.
| The dangers Of the money situation have
| largely disappeared. OF course, there il
| no chance for any bull market imme-
| diately and any efforts to start such a
| speculation will be speedily quenched.
Nevertheless the hopes Of the bear ele-
ment for a smash in values in the present
month because Of a money panic have
been frustrated; and the covering purchases
| Of this bear party might be sufficient In
| themselves to cause a decided rise in prices
| quite apart from any speculation for an
| advance. There in, perhaps, an inadequate
popular conception Of the extent to which
| weak holdings of stock have been liqui-
dated in the last three months and OF
| the commitments for the decline that have
| been made. There is the best reason to
believe that the short interest in Southern
! Pacific stock alone amounts to 10000
shares This is probably the largest short
| interest in any one security: but a great
| volume OF similar contracts il outstanding
| In almost every stock actively dealt in
| and II is believed by those who have been
at some pains TO investigate the matter
| carefully that a bear account almost equally
| large is open on the London market. In
| stating that the danger Of the money situa-
| ton has been mostly cleared away II is not
meant that there is no possibility that call
| money may not rise to high rates before
! Dec. 81. But il If meant very emphat ically
that the fears that previously existed that
solvent firms and individuals might not
| be able to obtain at any price money for
| their needs in the near future are now
| without basis. The banks gained 1924 900
| from the Sub-Treasury to-day and since
last Friday have lost only S285 600 az against
a loss Of 81, 484, 900 last week. The small
oss this week was due to large payments
n ade by the Government and to a decrease
in customs and internal revenues. and il 10
calculated that In the first two weeks of
January the Government distribution OF
morey will amount to nearly $4,000 900.
From then on the Government expendi-
lures will be very heavy upon contracts
for public work under the last appropria-
ton bill passed by Congress-. 1t seems
reasonable to believe. therefore, that the
Treasury drain" has almost passed The
most conspicuous buyers Of stocks to-day
were houses with London and Washington
connections, a matter which is significant
in view OF the international complications
that are thought possible. The Steel
stocks reflected the advantage that &C.
crues ia the United States Steel Corpora
| in
! Of the plant Of its chief competitor the
Union Steel Company. This leaves only
the Lackawanna Iron and Steel Company
of Buffalo and the Jones 4 Laughlins
Company Of Pittsburg as large rivals
| of the United States Steel concern.
| The movement OF the Southern Pacific
shares indicated that he apprehen-
sions Of the short interest therein were
becoming somewhat acute. American
Sugar and Refining common stock was
very strong upon the news OF the pre-
liminary negotiation OF the treaty between
Cuba and this country. by which a con-
cesslon Of 20 per cent. Is made In the inn
port duties levied by the United States
on Cuban products As It is understood
that the beet sugar interests have with
drawn their opposition To this Arrangement
there il little doubt that tho proposed
treaty will he successfully concluded
Call money ruled at S per cent. throughout
most OF the day. and time money was dis
tinctly easier. as It has been since the be-
ginning Of the week The most notable
incident Of the day was the great break
in the price Of corn in the Chicago market
and the practical collapse Of the snecula-
ton for the rise In that staple which has
been conducted there. The break was
said to be due to the free movement Of
corn from the interior. and it undoubtedly
foreshadows an increase in our exports
Of foodstuffs
The market to-day was strong and active
in the early trading, but in the afternoon
it became dull and somewhat weak follow
ing the recurrence Of supposedly unfavor-
able rumors regarding the Venezuelan
matter. The inference drawn from the
statement made In Parliament by the British
Premier that declaration OF war against
Venezuela by England and Germany was
probable ia really matter Of favorable
rather than unfavorable import. II means
that the affair has come down to a settled
basis and that the British and German
Governments realize that without a DECLARE
ton Of war they cannot attempt to enforce
an anomalous peaceful blockade" OF Venc-
zuelan ports. and as this declaration is
accompanied by distinct promise on the
part Of both governments that they
do not intend either to land troops or TO
take territory. it is a little hard to zee how
the United States can be involved In the
matter. The matter becomes Of even less
Importance in fact. than the action taken
by Great Britain in reference 10 Nicaragua
few years ago. when territory was actually
occupied. II may again be repeated here
that those who have the greatest interest
In being correctly and speedily informed
regarding this political complication, and
whose facilities for obtaining such informa-
ton are of an equally high order. state
that It will be found month hence that the
chief stock market effect Of the Venezuelan
difficulty was that it served the useful
purpose Of disoouraging a too active specu-
lation for higher prices at this tim.
New York Stock Exchange Sales. Dec. II,
CLOSING SRIcss OF usrTsD Stairs soSps
Bio. Asked hid. ASKED,