The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-10-02
FINANCIAL AND COMMERCIAL.
THURSDAY, OCT .

THuRSDAY, OCT. I.
The hand Of those who arc at work In the
stock market for lower prices was disclosed
in such maiadroit fashion in q publication
In one Of the morning newspapers to-day
giving currency to some Of the grossest
and most stale rumors Of financial trouble.
past and prospective, which Wall Street
has had dinned into It's ears for the last
three months. that market operators who
were inclined to doubt yesterday tho char
acter Of the selling that then depressed
prices no longer had any difficulty in form
ing a correct opinion about the matter.
Investigation during the day proved that
sentiment in the financial district was
governed by distinct reaction against
the scare stories that have recently been
set afloat and that there is dawning pretty
thorough appreciation of the manipula-
ton for tho fall in values that has been
going on. 1t is now clear that deliberate
effort has been made to demorallze the
public mind and provoke not merely the
selling Of stocks held on margins, but the
utterly needless liquidation OF investment
holdings. In the first hour Of business
to-day prices we're again attacked and the
stock found that their offerings were being
readily taken and that volume Of orders
larger than they had any idea Of, and pro-
oeeding from the general public. had been
placed for the purchase Of securities at
figures slightly under the market rate.
Similarly. these spectators discovered,
on attempting to cover their sales. that
owners of stocks were not particularly
DESTROYS Of parting with them. The
net result Of all these factors in the
market was an advance in prices which
carried the quotations of most stocks above
the figures touched in Tuesdays rapid
upward rebound. The advances we're main
tanned until the close Of the market. Penn
sylvania and New York Central were singled
out for hammering at the opening of BUSH
ness and they. therefore. naturally inaugu-
rated the days rise. The rank and file OF
the small speculative traders who are en-
deavoring to practice the art of selling
stocks that they do not own have, there
is good reason to believe, made the New
York Central shares one of the most favored
objects Of their operations. They have
done this on the general argument that
as the dividend rate on New York Central
is 5 per cent, the market price Of the stock
is at present too high compared with other
issues Of the same grade. What such
individuals have forgotten in making these
ventures Is the extraordinary degree to
which the New York Central shares are held
for investment. This makes the supply
Of the shares available for Wall Street
purposes exceedingly small For long
time past New York Central stock has
been loaned on the Stock Exchange for
delivery either fiat" or at a small premium.
Another matter which contributed much
to the strength Of the days market was
the cessation Of pressure upon the shares
of the steel producing companies and the
rapidity with which offerings of the new
United States Steel sinking fund bonds
were absorbed at higher prices. Another
matter which was not without influence
were giving close attention to the huctua-
tons of prices was the publication Of an
interview with tho head Of the largest
private iron and steel producing concern
in the United States, in which he denounced
the false ideas current in Wall Street as to
the facts Of the present state OF the iron
and steel business and the future pros
poets Of the trade.
The course Of prices to-day tends to
confirm the view Of many market observ-
ers that spectators for the decline, failing
in their efforts to excite public uneasiness
as to the credit situation, have artifcially
depressed prices as low as they can and
that the selling values of the leading stocks
ought to display in future the effect which
should naturally follow the popular real-
cation that they have been forced down
to an unwarrantably low level Every
thing in the general news to-day was of
encouraging character. The breaking of
the CORNER" in lard in Chicago is in line
exactly with the general forces which are
producing n continual fGli in the prices
of corn, wheat and cotton and are bringing
the prices Of all our commodities down to
the point where larger domestic and
foreign consumption Of them is possible
Foreign exchange was again weak and,
having fallen over cent in the last week,
is now at figure which, il it does not bring
gold imports in sight, at least brings them
very much closer at hand than they were
The Bank OF England's discount rate WAS
not raised to-day as many declared it
would be- The Bank made poor return
of its condition, but the adverse figures
We're, OF course, due to the fortnightly
financial settlements in London and their
character will change in next weeks state
ment. There was also an easier tone in
the money market to-day in Berlin and
other European financial centres.