New-York tribune., 1903-05-19
BONDS.
THE DAYS OPERATIONS IN STOCKS.

~sexg- u
THE DAYS OPERATIONS IN STOCKS.
Stock market trading reflected further hQui-
dation. bear pressure and a sufficient increase
in gloomy sentiment TO warrant the eXpecta-
tion that sharp rally in prices should soon de-
velop Traders found in the days news ample
argument for selling stocks. large gold export
engagements and increasing unrest in labor
circles exercising depressing influence on spec
ulatfve opinion and creating much uneasiness
among lightly margined accounts. The con-
4inued dropping in values has weakened many
accounts that were recently classed as strong
holdings. and the knowledge Of this fact en-
courages bear traders to hammer prices in the
hope Of forcing enough liquidation TO cause a
sharp break In securities. Declines yesterday
were heavy and large enough to lower the quo
ratfon level to a point not far above the low
record made in the Northern Securities slump.
In a number of issues prices are under that
point as. for instance, St Paul. Colorado ana
Southern, New-York Central. Pennsylvania
Southern Pacific. Tennessee Coal and United
States Steel common. further advance IN
the price Of cotton was among the unfaVoraple
developments OF the day. Wall Street taking the
view that the factors in control of the cotton
market might be able advance the quotation
for this product TO an extent that would cause
2 most disastrous influence the textile in
dustrv in this country The high price Of cot
ton has already hurt the cotton goods trace
and checked exports. and ii Will do further
damage if the rise continues. The statlstical
,,osition of cotton is strong. but the market is
also highly manipulated There was a large
amount OF genuine liquidation in stocks, and
the failure Of the market 20 exhibit noteworthy
rallying power considered discouraging
factor for the advocates of higher prices The
Baltimore
Ohio St Paul Missouri Pacific, New-York Cen
trail PENNSYLVANIA. Reading, Rock Island
Southern Pacific. Union Pacific and United
States Steel preferred. The United States Steel
second mortgage bonds sold at So against o'1s
for the preferred stock. Money was easy, but
sterling exchange was firm, despite gold export
engagements amounting to S2,325eoo
The idea that the stock market is in for a
long period Of gradually sinking values is being
jndustriorsly pushed in many quarters of the
street and in various financial publications
MANY people have taken position the short
side Of the market because of this increasing
bearishness. while many others have Withdrawn
entirely from speculation and show no dispo-
stion 10 return. They have been frightened
by the accommodating evidence of labor unrest
throughout the country Wall Street generally
reaches quick conclusions. and in the case of the
current epidemic of strikes it is contended In
q
bright promise Of May L for subsistence OF
abor troubles has been succeeded by indications
of acute trouble in the contest between labor
and capital. and that all lines of industry must
soon begin to reflect in decreased earnings. the
influence OF the contest Oh industrial activity.
While this is an extreme view Of the situation
the fact remains that the present tendency in
labor's ranks is disqueting the people who have
money invested in the countrys industries.
and healthful that it hardly appears probable
that labors demands will upset the investment
position Of American securities. especially as
in so many cases il is not a question of wage
or hours but of the alleged right of employees
to run the affairs Of their employers. Strikes
based on such demands do not win public SYM
pathy.
In addition TO the labor situation the Street
IS beginning worry about the outlook for
money. The best way to prevent trouble is to
prepare for it. and little worry and preparation
now may save serious disturbance next fall
when the usual crop moving demand develops.
Gold exports are being made in larger volume
than recently expected, but they reduce our
obligations abroad and reflect the ability of
this country pay its debts. they ought not
TO excite alarm in any but kindergarten circles.
This country is in a good position TO send gold
abroad. and IL is not unlikely that the amount
exported at the current movement Will be more
than offset by return flow in the fall Gold
production in this country is heavy, the stock
OF gold coin through new deposits of gold bull
ion in the various mints and assay Offices in
creasing in the last four months over S19OO0O00
Bank loans are expanded. it is true, but they are
backed by good security. There are various
factors in the situation that favorable for
bear operations for turn, but there is nothing
OF j sufficiently adverse character to warrant
the sale Of investment holdings on well pro-
tected speculative issues. The decline has run
without important interruption ever since
the elimination OF the recovery following the
Northern Securities decision. and a good sized
rally. II not = sustained upward movement is
due. The general public may be waiting for
lower prices. but il values should begin to ex-
hi5.t advancing tendency Il would doubtless
not he long before the public appetite would be
stimulated 10 the active buying point.