The San Francisco call., 1903-12-06

MEN 1RtNhs DeC- o.-10efe was
tone OF doubt and hesitation in to-days
stock market which quite nearly fol-
lowed the appearance in yesterdays
market Of signs CT elimination Of the
rise. Yesterdays large volume of deal
ings and the small net changes in in
voice pointed to both heavy realizing
and 10 large short covering While the
realizing is q strengthening factor Of
the market. the reduction Of the short
interest oeprives il Of a technical factor
of strength. A renewed advance in
Brooklyn Transit, followed by the local
fractions this morning. obtained little
following in the general list. A selling
movement followed, which carried
number Of the leaders. such as Penn
sylvania, United States Steel preferred
and Amalgamsted. a point under last
night A feverish and irregular recov-
cry succeeded upon the publication Of
the bank statement. The gain OF $500,
600 in cash reserves was an agreeable
surprise compared with the expecta-
ton Of a decrease Of several hundred
thousand dollars. and it is supposed to
be due 10 the making UP Of former
discrepancies the other way. The in
crease in the loan item of little over
sl,000,ooO was not disturbing. The mar
ket closed steady and not far from last
nights level. The sterling exchange
market was weak and declined further
TO a level which viii assure the move
ment toward New York Of any avail
able gold supply in foreign money mar
kets.
LARGE SALE OF BONDS.
The Financial Chronicle points out
that municipal bond sales for Novem-
Der were larger than for any previous
November except in 1896. The large is
sues Of new railroad bonds which have
been successfully placed in the recent
past is also the occasion Of comment IA
forable to the financial prospect. A con-
trast is afforded by the figures Of new
interpretations with a capital Of 81 .000.
900 or over during November. which fell
TO the lowest aggregate Of any month
since the early part of 1929.
The temper Of speculation in stocks
has undergone a change this week, and
prices have advanced in a broadening
market. Commission houses report that
there has been little growth in outside
order business, and the movement is
supposed TO be principally due to oper-
atiOns by professional traders and
habituaI operators Of the wealthy class.
But the technical significance Of the
movement is probably not less on that
account Operators in stocks for a long
time have found their only success on
the side of receding prices. This week
the market gave evidence Of being over
recent successes in forcing out sales of
stocks when they offered prices down.
Among the industrials especially
which have suffered such drastic seal
ing down Of prices, the urgent demand
10 borrow stocks for delivery, which
commanded a premium in some cases.
gave warning of danger to the shorts
and prompted buying to 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 mar
ket 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
10 realizing by the longs was un-
doubtedly this renewed short selling.
With the persistence Of the upward
movement through the week an ex-
tended short interest was thus left un-
covered until past the middle Of the
week, when IL became clear that bear
element OF a stronger and more per-
sistent character than any heretofore
reached was being driven to cover,
with very important effect upon prices
and an awakening Of animation in the
market. The fears Of shorts were ag-
gravated by their suspicion that an
absorption Of stocks had been going on
by the great capital and banking COM
binations, whose operations contem-
plate wide policies and are based upon
convictions as to general conditions
and their ultimate working out. The
recovery in prices gained force and
proceeded In the face OF various news
factors that were unfavorable, but
" hich had to do with conditions that
have been more or less foreseen and