New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-12-06
Financial.
The Financial World.

happened TO vitality change conditions outside OF
Wall Street. The inference. therefore Is that the
sharp rise the market has had the past week.
is due mainly to technical conditions. Next
week viii put this to the test.
That public liquidation had ceased. was plain
ly apparent when the last big drives were made
at the Steels and Pennsylvania. While the sud-
den pressure Of an enormous volume OF sales
forced these stocks down. the rest Of the list
stood comparatively firm. with very little doing.
Had there been the same large amount OF public
selling there had been earlier. the Steels and
Pennsylvania would simply have led a process
sion downward. This became apparent to every
body three weeks ago.
From what has happened since, il would seem
a certainty that In the last selling which de-
pressed the market. the bulk Of the sales must
have been short stock The sellers having
waited for more public liquidation and finding
none coming. considered it expedIent to cover;
and a movement that way under such con-
ditions is sure to find plenty Of people ready
to help the short sellers to cover their contracts
at the highest obtanable prices. The extent Of the
rise since last Monday indicates that the market
was in a heavily oversold state; and considering
the bulk Of those stocks. and consequent diff
Guilty Of lifting them, Steel preferred and Penn
sylvania. must have had an extra large short
interest IN them.
The advance made beginning last Monday.
/ was well started on Tuesday. by Thursday had
become a little exciting. ard on Friday had
gone so high that there was a very general
profit taking by all whose buying had put the
market up the bears. A quite considerable
distribution of stocks took place that day; and
the market fell back under it. Yesterday there
were alternate small weak and strong spells.
and at the close the opinion seemed general
that next week. probably the early part OF Il
would determine whether the rise could hold
1t is very certain that the short interest has
been largely reduced. If the market Is TO hold.
further buying must be on bull account and not
merely to force the covering Of shorts. Good
judges say they see no signs yet Of outsiders re-
turning to the market. II looks like all profess
sionaI work
The bank statement had little effect It was
more or less negative. showing no change OF
consequence from the week before The surplus
reserve IS now something over six millions. COM
pairing with ten millions last year. and Ga
millions the year before. Bankers seem TO Be
all talking about money being plenty after the
January disbursements are out of the way. At
present the call rate keeps close TO six per cent.
generally a trihe above; and over-the-year
money. which would be so day. about the same
figure The more conservative OF hnanciers.
would prefer to see the stock market keep quiet
until the period Of easy money is reached: bug
this is just a time when the holder operators
would be prompted to buy stocks. taking
chances on an intervening disturbance OF the
money market. in the surety Of marketing them
prohtabIy when easy money conditions followed
later on
Because OF the prominence Pennsylvania arL
the Steel stocks had IN the last effort made 10
break the market, after public liquidation had
stopped much interest attached TO their move
ments the past week They We're greatly In
fuentiaI the rest of the list Penrsy-vaniL
rose five points. from 113 on Monday 10 us on
Friday; and lost only fraction since. To et-
feet this rise required a very much less voIume
Of trading than was required recently 10 puC
the stock down between three and four points.
which shows how large a part of that selling
must have been short stock The rise in steel
preferred was even larger for from 5l12 on
Monday IL rose 10 IS on Friday. But IN this
case. the stock did not hold so we'll as Pennsyl-
vania haS. The bulk Of the rise was made in q
great rush Friday morning. after excited
opening that and the subsequent upward rush.
being considered to show the skilled hand OF Mr.
Keene Later. the price fell back nearly two
points. on profit taking. The notable thing,
however is that Il has become possible to
handle this bulky stock in such style; whereas
from so down. It seemed nothing could be done
with it but to drop 1t from one landing stage
to another. without the sembIance Of lift be
tween either.
More moderate advances took place in other
stocks. as Union Pacific, AtchisOn, Louisville,
New York Central and others; but Erie was
notably quiet. In the traction stocks, quite
sensational rush took place in Brooklyn Trac-
ton. which in a small way bore resemblance to
that in Steel preferred and seemed 20 betray
the same hand. The other fractions also did
well. All showed a considerable amount Of
profit taking at the highest points reached
1t was said that London was in the market
as a quite active buyer. and it probably was
with the initiative on this side. Whether our
market was the main influence or not. the
cables said that their own market over there
showed an improved tone and was doing better
than It had. There certainly was plenty OF room
for Improvement: for bad as We have been. they
h=Ts been wo-=7.
II the stock market rad not so exclusively
engaged the attention OF the Street. the Wild
movements Of the cotton market would have
been the main topic Of interest. This cotton
question is stin of the serious trade problems
OF the situation. Some time other. and that
not far Off. the dislOcatton which now exists DO
tween the price OF the material and OF the
finished product win have 70 find adjustment
The cotton mills of Lancashire are closed now
with a degree of distress to the manufacture
ing population recalling the civil War urne~
Our mills are still living sparingly on old sup
plies or on hand 10 mouth purchases; and While
the cost OF production of print cloths at the
present price OF cotton Is figured at Al cents
per ward. the market price for them IS S9s
cents. obviously this thing cannot last much
longer. Either the price Of the finished product
must 90 up or that of the raw material come
down As things are. II is simply test OF
ba+vraar thu manufacturers and the COT