The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-07-19
GOSSIP OF WALL STREET.

The speculative effect Of the bank state
rent was rather negative. IL was hardly
good enough TO facilitate profit taking ON
long stocks and II was not so unfsvOrable as
to warrant a renewal OF bearish aggresslons.
The cash gain was larger than the known
movements OF money had foreshadowed.
out the loan shrinkage was much smaller
than the Street expected II to be. Dissatis-
Iacti0n with the statement referred 20 tho
loan item. IL had been the general opinion
among brokers that the liquidation last week
was more acute and drastic than any that
had previously occurred and It's failure to be
reflected in substantial reduction OF loans
was distinct disappointment. The heavl-
ness OF the market from the opening was due
largely to feeling on the part OF traders that
the bank statement had been too favorably
discounted In Fridays session.
Friday rallies as rule are Of profess
sional origin and experienced observers have
learned not to take them too seriously. They
are likely to reflect merely the operations OF
room traders who have gone long for a turn
and who seize small profits and quit tho
market nat" for the week. This is particu-
larly true when stocks have been declining
for several days. Friday reactions after an
advance are equally meaningless as a general
thing. 1t IL on Friday that the professional
element begins to even UP its commitments.
and the process OF dlscounting the bank
statement enters promin emily into the opera
ton. For stocks to sell of on a good staten enS
is phenomenon with which all traders arc
more or less familiar.
Some think the buying power in the market
will be found to have been materially re-
duced as a result Of the severe losses that
some OF the large financial interests have
suffered on this decline.
There was n good general borrowing de-
mand for stocks In the loan department
yesterday. II is believed that considerable
short interest is being carried into the new
week. The bear crowd put out stocks rather
freely on Fridays advance.
The past week will long be remembered
for an extraordinary orgy Of bear rumors.
Some Of the wild rumors that went around
originated. no doubt. In overweight imagina-
ton but others bore evidence Of having been
conceived and circulated with deliberate
purpose. They referred to individuals and
houses OF the very highest character, and
were often 70 persistent as to awaken most
ridiculous apprehensions. A year ago bullish
rumors played an equally important part
in the influencing Of speculative sentiment.
A specialist in Pennsylvania says that
heavy absorption Of the stock in odd lots"
has been a striking feature OF recent trans
actions.
The continued pressure upon Rock Island
produces an unfavorable impression. No
body appears to have any definite opinion as
20 where the stock keeps coming from. One
suggestion is that the Yoakum crowd Is
If rf n IN
ceved in exchange for the st. Louis and
San Francisco property. That is only
suggestion The apparent indifference OF
the Moore party toward the stock market
leaves il TO he inferred that these operations
in Rock Island ara for some other account.
IL is declared on the very highest authority
that the Moore crowd is quite out or the
market and has not even been supporting
the stock The three classes OF new Rock
Island securities-common and preferred stock
and bonds-are now selling at an equivalent Of
about l54 for old Rock Island stock.
II ia unofIlcially explained. apropos Of the
81 900. 900 loan at I per cent. negotiated re-
Gently by the Kansas City Fort Scott and
Memphis, that the ST. Louis and San Francisco
people undertook to deliver their property
TO the Rock Island in a certain physical con-
ditiOn and the inference arising is that the
81 200. 900 raised on the credit OF tho Kansas
City. Fort Scott and Memphis. which is owned
b. the st. Louis and San Francisco, was
needed to put the property into the condition
stipulated by the terms OF the deal. In chat
case the loan would be transaction -con-
drcted independently of the Rock Island.
although the Rock Island. through its control
of the Frisco. indirectly controls the Kansas
CITY Fort Scott and Memphis,
The Rock Island people" said capable
critic last week did the shrewdest thing
in all their career when they forced the ROCK
Island deal through year ago against the
advice of nearly everybody in Wall Street
with whom they discussed the thing. That.
if you will recall was about the last. II NOT
indeed the very last big scheme to be
smoothly financed If they had waited two
or three months as they were urged to do
they would never have got it through. Think
of irving to finance an operation like that
Al the present time, They won in the last
few jumps OF the race and got under the wire
by nose, but that nose was as good az
furlonG."
The observation last week that the market
was broad enough at all times to take tho
stocks offered. differing in that respect from
a really dcmoralized market. recalled the
remarks OF VI p'o' op~t"'S'
stood over the ticker one day when the market
was falling and exclaimed enthusiastically:
"This is the best market ever
saw. You can sell anything" II seems all 10
depend upon the point of view.
II is said that the Tammany crowd In the
stock market has been badly hit. 1t was
heavily long of the tractions-and held on
very stubbornly.
II Is now the fashion 10 draw parallels be-
tween the profession al tactics empioyedtop ut
prices down and those that were used year
ago TO put prices up. Al the top Of the DUH
market or rather in July and August last
year. conservative traders began to have
misgiyngs and were wary Of the long side.
lust as now they have msgivings and are wary
of the short side, and whereas year ago
operators for the advance took up one spec
iolty after another and bid them mp for effect
The hear crowd lately has been seeking out
oorresponding specialtes. one after another.
and offering them down, presumably also
for effect. And the way In which traders
who would hull the market have been buy
ing stocks and selling them out again in dis
gust recalls how a professional minority
kept selling stocks short year ago ana buying
them in at a loss Realizing how very dim
cult and discouraging it Is to bull market
al the bottom brokers are reluctant TO put
clients long of stocks.