The sun., 1903-05-10
YINANrIAL AND COMMERCIAL.
SATURDAY. May 9

SATURDAY, May y.
The stock market was again heavy this
morning. this time to a somewhat greater
extent than on preceding days, under
pressure brought by spectators for the
fall Professional traders on the floor OF
the Stock Exchange and elsewhere have
become very bearish because of the failure
of the market 10 advance when logically
an advance seems called for. They are
therefore, "hammering" prices whenever
occasion presents itself taking care. how
ever, to do so with as little actual selling
of stock as possible Their endeavor is
to make the market look much weaker
than is really the case and to cover the
short contracts they have already put out
by means Of whatever small liquidation
they succeed in forcing. To-day these
operations centred. first, around the erro-
neous declaration in various newspapers
that Secretary Hay had entered a heated
protest against the supposed Russian
occupa tio1 OF Newchwang and the idea that
diplomatic hostilities at least will he
begun against Russia by this country in
conjunction with Japan ard Great Britain.
1t seems needless to point ont the absurdity
of all this as a reason for selling stocks.
and the reason" probably deceived few
people Every one possessing ordinary in
telIigeuce knows that the last thing the
President of the ULitcd States will do
under the presett circumstances Is to
engage in any needless foreign co'npli-
cations that will disturb prosperity in this
country and thus react unfavorably upon
his own chances for denomination and cleo
ton. While public sentiment here would
be2justly indignant at the violation by Rus-
sa Of her treaty obligations. public COM
mon sense is also very clear upon the point
that tho occupation of the northern part
of the Chinese Empire by Russia is sooner
or later inevitable. and also that the COM
mpcial interests of our country In that
quarter are altogether too small to Justlfy
us In bothering very much over changes OF
government there But the entire discus
sion is, Of course. very fair one days
rallying cry for Wall Street bears.
The bank statement, when 1t appeared,
was also hailed as an influence making for
lower prices. although the attacks upon the
market after the publication Of the state
ment were not resumed with any great
vigor. A gain in cash Of 81 .5C00 0O0 an in
crease in loans Of 50 900 900 and a decrease
in surplus reserve of S1,15O.OO0. in round
A1nnbers. W ere exhibited The supposedly
unfavorable feature of the statement was
the increase in loans; but, according to
those whose judgment is usually accurate
In these matters, the increase was caused
almost wholly by the recent Developments
in the foreign exchange market. 1t was
due, In other words, TO the borrowing OF
money here for the purpose Of paying of
loans maturing in Europe. This process is
extremely natural so long as there is such
disparity as now exists betwean rates for the
use Of money in this country and in Europe.
and its operation has been further accel-
Grated by the transfers Of money to Europe,
either for subscription to the Transvaal
loan by investors on this side Of the water or
in the shape Of funds recalled by foreign
owners with the same object in view. SO
considered. the bank statement was not a
bad one, and it would sem that worrying
over the money situation here might he
deferred until money rates rise little
above per cent. on call and ~ per cent,
for practically all other periods. 1t should
b noted that the banks gained to-day
over 81 900 00O from the Sub-Treasury.
This gain. of course, will figure In next
weeks bank statement. All of the general
news Of the day was favorable. The Erie
Railroad submitted a statement Of earnings
for the March quarter showing net In
GREASE of 1899 Oal: but in the prevailing
temper of speculation it had no particular
effect upon the Erie shares. One thing
that would help matters in the security
market good deal would he cessation
of the present dangerous upward move
ment in the price Of cotton. Good reason
has existed hitherto for the advance in the
price OF this staple; but the speculation is
now assuming all the dimensions Of corner,
and as such its influence upon the cotton
trade and upon the general business of the
country is not good.