The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-05-03
STOCKS AND BONDS.


New York. May 2.-The stock market
received a shaking out this afternoon
which has been considered overdue for
some time by competent observers of
conditions. AS usual. the construction
of the money supply is the immediate
cause of the fall in prices. Needless to
say the ground has been prepar cd by
the manipulation of speculative pools
and cliques, with a resulting imitation
| in prices which gave purely fictitious
values in the most fragrant cases and
highly speculative range of values in
the whole list. The lesson by the Inter
national Power episode was reinforced
| by the example of another crop. which
has been lifted recently by highly ma
nipulative tactics with practically no
general demand for the securities. The
abrupt break to par of Rutland preferred
compared with 12G yesterday was the
sufficient indication on the stock eX-
| change of the state of distrust which
had arisen. The displacinG of credits
which resulted from the discrimination
against collateral for loans caused
| lively disturbance in the money market
| which was already in tight condition.
Some of the largest of the banks loaned
very freely at arbitrary rate of six
per cent. but this did not prevent an
| active demand at higher rarge of rates
all the way up to ten per cent
The forecast for a weak bank state
ment did not give promise of any i'm
mediate relief from the strained condi-
ton of the money market Indications
point to a loss of cash by the banks of
nearly So, 900 900 in spite of receipts on
balance from the interior and owing to
| the subTreasury requirements of $i,l34,-
000 The steadiness of the foreign ex-
| change market at near the gold export
point was also regarded ominously as
| threatening a possible further complica-
| tion next week. The calling for payment
| of a % per cent installment of subscrip-
| lions to the steamship merger syndicate
will require next week an amount APP
| proximating 81 500 900 on the sppposition
| that sixty per cent of the subscriptions
| are payable in New York and 40 per cent
| abroad. There are other heavy require
ments imminent, including the disburse-
| ment of the dividend to the United
| States Steel underwriting syndicate.
| That there were some heavy transactions
| carried through yesterday was indicated
1 by the large clearing of the banks, which
reached about $447 900, 900 for the day.
| The weakness of the market was con-
! tested for a time, apparently by the ele-
| ment which has led the speculation for
| some time 4hey had to contend with
large Western orders to sell. The nota-
! Die strength of Louisville, which touched
| i$AA was attributed to the manoeuvcrs
| of this element and said to be facilitated
/ by The existence of a short interest.
| Early strength in Pennsylvania was also
| a help In the late dealings all at
/ tempt to support the market was aban-
| doncd and stocks were unloaded indis-
! cl imina ELY. causing a break in prices,
! which reached as high as .-ree per cent
| and Uuder in the majority of active
| stocks. St Paul suffered to the extent
ri AS, Canadian Pacific 35s and other
! less conspicuous stocks from 8 to Z.
| International Power continued it's eccen-
| trio gyrations which extended from 102
to IS, with a net loss of 13 points. Hasty
profit-taking by the room shorts caused
| some spasmodc rallies, but the closing
| was weak and semi -demoraliZed. Minor
considerations were obliterated by the
Importance attached to the money out
| look.
| The bond market shared the weakness
OF the stock market, but in a much less
degree. Total sales (par value) 3d.,
220, 900.
| United States bonds we're all unchanged
on the last call.
| Total sales of stocks today were
| 1923, 200 shares, including Atchison 81,
| 200; Canadian Pacific 1920; Chicago,
| Indianapolis and Louisville 1900; Erie
| 5000; Louisville and Nashville $4,000;
| Manhattan 14.600; Missouri Pacific 12.100;
New York Central $500; Norfolk and
Western $500; Pennsylvania $1,000;
| Reading 57,4O0; Reading. second prefer
| red, $500; st. Paul 10000; Southern Pa
cific 1880; Southern Railway 22,S00;
Union Pacific $4,000; Wabash, preferred,
IL, 300 Amalgamated Copper 1900;
American Linseed Oil $500; American
Smelling 6,400; Brooklyn Rapid Transit
| 16, AGO. Colorado Fuel and Iron 27,100;
Sugar 26,60G; Tennessee Coal and Iron
| 1900; United States Steel 21,S00; United
States Steel. preferred, 1896; American
| Locomotive 12700,