New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-05-20
BONDS.
THE DAYS OPERATIONS IN STOCKS

FrfeR IS = 4
rur NAYS OPERATIONS IN STOCKS.
While further liquidation in stocks was re-
ported in the early dealings prices were nrlii Ii
the greater part of the day, with general recov-
cries throughout. In the last hour there were
reactions from the best figures. but as a RUE
=, ,,,.a+iors were at net gains as compared
,+t, the nreceding days close There was io
.,o-+ar+ demand from the so-called pubhc al
,es generally representing buying to cover
short contracts and accumulation OF gooo issuVs
bx q few prominent investment interests Inc
latter feature was especially marked IN the o0ii0
5ana-+uaent in which transactions We're hedNS
and shout double in volume the record Oh -"01I
5av Large dealings were reported IN Oohti-
80, -robacco As Union Pacific convertible As
Tinted States Steel second mortgage as anu
wabash debenture Bs. while throughout the list
80 IS an active investment and speculative
demand The new Steel bonds 1uctUated within
fractional limits. closing points above the pre-
terred stock. 1t is said that the syndicate
formed to finance the Steel conversion plan VIII
waive its option on the uncovered portion OF the
issue amounting TO upward of SlVo.ooV'VVo' ana
a. This nroves 10 be the case the transaction VIII
be closed with about S130W00Oo preferred
stock retired and S1500o0o00 in bonds issued
This zzould reduce the company's dividend
charges a
interest charges approximately SI'3oo""
year
The activity in the cotton market had no ap-
Iyarert effect on stocks.
On the Cotton Exchange furious speculation
again developed. with sharp advances when
left the market at the highest point so lar
reached in the current movement il WIS
thought that there might be heavy liquidation
in stocks by traders caught short in cotton, out
there was no evidence Of this kind OF selling
and no indication Of trouble among stock houses
as a result OF the unhealthful happenings In
the cotton markets of the world Favorable re-
ports from the Western crop territory and en-
couraging aims in railroad earnings doubtless
created favorable impression Wall Street
sentiment but the chief reason of the days ad-
vance in technical market conditions
Sterling exchange was strong at ADVANCE
Of Is points and recession at the close, an in
creased demand and growing scarcity Of COM
raercial bills being responsible for the move
n1ent. More gold will doubtless be exported this
week Call and time money were offered with
freedom. and brokers not disposed to look
for an immediate change in rates. although
higher figures were looked for before July. Lon
don again bought stocks in the local market.
In the movement of values from September.
1902 to the close of the market on the day of
the Northern Securities slump the average price
of twenty active stocks showed loss Of about
twenty-five points 4 rally which then de-
veloped resulted 10y May ! in q recovery of
five points from the final figures Of April Is but
this in turn followed by further sagging
tendency up to the present time, carrying prices
FOR twenty active issues within a point of the
low record of April It may be admitted that
there are adverse factors in the situation, but
has not the decline in quotations. however. dis
counted all that is unfavorable? The Street, il
is true continues intensely bearish and pes
sisrnism is more rampant than for long
time. Factors which a year ago created bull
enthusiasm induce bear attacks on securi-
ties. and the many substantial underlying feat
ures of strength in the country's industrial and
financial position fail to attract a public de-
mand for stocks. even az the current attractive
price level There IS nevertheless, a quiet alb
sorption Of stocks by prominent capitalists. and
in the last few days the character of buying has
been much better than that of the selling. The
market has declined TO a point where solid in
vestmeut railroad issues may be bought on an
investment basis Of AZ TO 512 per cent. while in
dustrial shares Of undou5ted merit may be had
on the basis Of from S TO II per cent. Street
opinion is entirely too bearsh. Conditions in
money and business do not warrant the present
gloom in speculative circles. and the prediction
is made that people who buy stocks and hold
them viii be able sell at much higher figures
before the summer is over
Gold exports and shipments Of money 10 the
South, the latter owing TO the cotton specula-
ton in New-Orleans. may offset the movement
OF money 10 New-York from the West this
week, while rates for loans may rule frrner be
fore July J. Such situation, however will
rot upset the value Of American securities
Cotton speculation is the most unfavora BILE
feature IN the immediate outlook but 1T hardly
haf
affairs on the cotton exchanges in New-YorE
New-Orleans and Liverpool viii continue long,
enough 70 leave lasting impression on Amer
lean industries Liquidation in stocks may of
course, continue for a time, and with it further
declines in values. but prices in most cases
are below the actual merit of investment Issues
purchases At The prevailing level ought 10 prove
safe and profitable. Each decline places stocks
IN stronger hands. ard the time viii come when
the shorts VIII find efforts to shake out stock
Ineffective. while attempts to buy will result in
rapid appreciation in quotations
THE DAYS OPERATIONS IN BONDS.