The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1903-12-06
STOCKS AND BONDS.


STOCKS AND BONDS.
New York, Dec. 5.-There was tone
of doubt and hesitation In tcday's stock
market which quite naturally followed
the appearance in yesterdays market OF
signs OF a elimination OF the rise. Yes
terday's large volume of dealings and the
small net changes in price pointed both
to- heavy realizing and to large short
coverings. While the realizing is
Strengthening factor of the market, the
reduction of the short interest deprives
it of technical factor of strength. a
renewed advance in Brooklyn Transit,
followed by the local fractions. caused
small advance. Some OF the leading
stocks, however. closed point under last
nights close. The gain OF half million
dollars in cash reserves was an agreea-
bic surprise compared with the expecta-
ton of decrease Of 600 and it is sup
posed to be due to the marking UP of
former discrepancies.
The market closed steady and not far
from last nights level. The sterling ex-
change market was weak and declined
further to level which will assure the
movement toward New York of any
available gold supply in foreign money
markets. The Financial Chronicle points
out that municipal bond sales for No
vember were larger than for any previ-
Gus November except In 1886. The large
issues Of new railroad bonds which have
been successfully placed in The recent
past is also commented upon. A contrast
is afforded by the figures of new i1cor-
porations with capital of slSoo.ooo or
over during November, which fell to the
lowest aggregate Of any month since the
early part OF 1899. 80
The temper OF stocks Is weak and prices
have an advanced broadening field. The
technical significance of the movement
is probably not less. Operators in stocks
for a long time have found their only sue
cess inside of receding prices. The mar
ket gave evidence of being oversold, and
the bears failed of their recent successes
in forcing out sales of stocks when they
offered prices down. Among the indus
trials especially, which have suffered
such drastic scaling down of prices. the
urgent demand to borrow stocks for de-
livery which commanded a premium in
some cases. gave warning of danger to
the shorts and prompted buying 10 cover.
The early covering movements among
short spectators Of the smaller class did
not at first disturb the more powerful
operators on that side of the market and
they were inclined to avail themselves OF
The rallies in prices to put out fresh lines
at the higher level Some of the selling
that was attributed to realizing by the
longs was undoubtedly this short selling.
The recovery in prices gained force and
proceeded in the face of various news
factors that were unfavorable. but which
had to deal with conditions that have
been more or less foreseen and have been
an element in the speculation for de-
cline for some time past. For instance.
the cotton crop indicated by the govern
ment's estimate at below 1o.00o.00o bales
would be regarded as amounting TO ma
tional calamity were II not that the heavy
marketing of cotton during the November
awakens some skepticism. But these de-
velopments are met by the growth of the
opinion that the enormous shrinkage that
has occurred In the prices Of securities
has already been suf6ateHt TO discount
the worst that could happen Of trade re-
action and contraction. The sentiment
over the industrial future also has grown
distinctly more hopefulssThis is especial
" marked in regard TO tHe iron and steel
trade. from which come REPORTS indicating
that the decline in prices of the product
has met a revived demand which prom
Uses some consumptive absorption of the
lessened voiumeaof oatp,ft.s The n,easuees
of economy already adopted and those
Ia ~ sl, Gierhf
rates on steel products for export. arouse
hopes OF an available outlet in the for
eign trade. The details Of the foreign
trade statement for October are crafty
ing evidences OF the revival of the export
trade in all lines OF manufactures.
Conditions abroad as well al here prom
Use a continuance OF a firm money market
for the rest OF the year. But it is made
clear from the movements of statistics of
International trade that New York con-
demns the existing situation
New Orleans and San Francisco have
made further acquisitions upon New York
for currency during the week. and addi-
tionai shipments TO those points are ex-
pected but the western demand for crop
moving purposes has come 10 an end.
Gold for imports has been secured In the
London market whenever the movement
CT money rates did not make IL more
profitable for holders of exchange on
London 10 hold up their collection and
leave the proceeds on loan in London.
A new development has been the ship
rents of gold from Japan to San Fran
cisco. San Francisco's exchange needs
arc usually sent by way of Australia.
but the large Australian crops have
thrown the advantage OF exchange TO
that center. San Francisco finds il OF
greater advantage 10 dispose OF It's ster-
ling exchange claims to Japan and to
take gold from there in compensation.
The movement is relief from the cur
rency standpoint. II is believed that the
movement of stocks is discounting OF
expectation.
The bond market has been somewhat ir-
regular but has grown stronger In sym.
rathy with stocks. Unitel States Is
and the Dew Fe decliass4sAs De sent De-
low the closing call Of last week.