The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-12-19
FINANCIAL AND COMMERCIAL.



THURSDAY. Dec. H.
The truth Of the assertion constantly
made by veteran observers OF the stock
market ever since the banking institutions
Of the city adopted their now famous pro-
tective measure. that the only thing standing
in the way Of a sharp recovery in the prices
Of securities was the unpleasant political
complication in Venezuela, was strikingly
attested to-day. The clearing up over night
Of the Venezue difficulty caused rise
in to-day's market Of from two to four
points in the prices Of all the active stocks.
II is, Of course, not absolutely settled that
the Venezuelan trouble can be considered
H. wholly shorn Of possible further influence
upon financial concerns In this country.
The admitted fact. however, that the people
Of Venezuela have demanded that sub
mission be made by their Government to
the British and German demands and that
the United States Minister in Venezuela
has been invested with full powers by the
Venezuelan Government to effect settle
ment of all the difficulties Of that country
with the foreign nations seems to entirely
Justify the assumption that the incident.
40 far as Wall Street is concerned, is closed
This. at least. was the view Of the matter
unanimously taken in the financial com
munity TODAY. But while the acute cause
Of the somewh hat violent rise in prices wit
messed to-day was the dissipation of the
Venezuelan scare, the real force under
lying the movement was simply the over
sold condition of the market and the fact
that a general and thorough "cleaning-up'
process had been enforced in Wall Street
before the actual necessity for such an opera
ton arose. The work of the two factors
last named put the market in such shape
that the removal Of the only substantial
weight still pressing upon it made an up
ward bound in prices inevitable.
The market was most favorably infiu-
enced before the opening by the decidedly
higher range of quotations received from
London. indicating that the same con-
struction was placed in England a. here
upon the changed aspect of the Venezuelan
situation. The weekly report Of the Bank
Of England was a good one and the banks
minimum rate of discount was not lowered
Money here during the day did rise above
5 per cent and time money was offered
freely at per cent fortall periods. with
few people seeming to want il. Domestic
exchange still ruled heavily in favor Of
lIls Guy plfI lllS tACHdflkt DIoht Slldl plNs
while the daily record Of the transactions
of the banks with the Sub-Treasury showed
a total net loss by the banks since Friday
Of only so3s,oo0 as against Al46.ooo for
the corresponding period last week. The
prices Of iCheat and corn in the cereal
markets again fell, and large export
business in these staples was done All
these matters, If course, lent strong as
sist ance TO thu advance in prices on the
Stock Exchange. The most notable and
important feature of the days trading
was the wav the advances made we're srs-
tanned. There was profit taking in great
quantity. o. pecially az the opening q the
market. Nevert heess. buying orders for
both accounts flowed in constantly during
the day and quotations moved up steadily
and surely, closing at the highest. II is
very possible that great part of the buying
was for the purpose Of covering contracts
for the decline The marked strength Of
Southern Pacific was declared by many
TO be due to purchases Of this nature, the
short interest in this stock having peculiar
and well-grounded reason for alarm as
hitherto explained in this column. Never
theless, inasmuch as those who have the
rule in Sout hern Pacific affairs are ex-
pressing the opinion that the stock is selling
much too low for it's value and that its market
position has been immensely improved by
the liquidation Of the speculative account
recently opened in it, II is entirely possible
that larger quantity Of il has been recently
acquired for invest ment than Wall Street
commonly supposes. The Steel stocks
were very strong because Of fuller realiza-
ton hy Spariila. nd 80
benefit derived by the United States Steel
Corporation from it's recent acquisition Of
a great competing property and also be-
cause Of rumors that various oil her de-
velopments were impending concerning
the affairs Of tho corporation that would
be generally held to be Of favorable
nature. Great strength was also shown
by the r aiding ISSUES and by he coal st ocks
generally Those who should he hest in
formed concerning the coal properties
aver that 30 great is the demand fer coal
AZ high prices, and such is tho prospect
that this demand will Ice indefinitely pro.
lOnged, that the chances are that the coal
companies will make up all the losses re-
Gently incurred by them In a much shorter
time than was anticipated. Formal an
nouncement has not yet been made and may
not be made for some time that Vanderbilt
ard Pennsylvania Railroad interests have
acquired a very large quantity Of the stock
of the Reading Railroad The fact is,
however. a. stated A majority of the stock
has not passed; but the Vanderbilt and
Pennsylvania holdings OF the Reading
shares are such that these two interests will
hereafter control the Reading company.