The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-05-19
FINANCIAL AND COMMERCIAL.
MONDAY, NAV ls,

MONDAY, May IS.
Under ordinary circumstances the SHARP
decline in prices on the security market
to-day would be taken as marking the
elimination at least for the time being, OF
the downward movement in values that has
been in progress there. But. as 1t is needles,
TO point out, ordinary and normal standards
are not always safe guides In judging mar
liet movements, particularly at time wher
tide of pessimism has set in 30 strongly
and widely a. 1t has at present. The fact
remains. however, that there ia no direct
assignable cause for the fall in prices tina
has occurred except the constant drihbling
liquidation by Disguised holders Of stocks
bought speculatively for the rise, and the
aggressive, confident and extensive opera
tons for the fall conducted by practically
the entire body of professional spectators
These factors have now been at work in
the market for reasonably long period and
have resulted in a six days continuous
price decline If no great and sudden
! break" in the market is imminent and
hardly anybody thinks 1t Ia. a rally, II onl y
of professional and trading order, seems
| due.
The only news" upon which the selling
| of stocks to-day proceeded was the an
| nouncement that over S2.OOO.OOO in gold
| had been taken for export and that 5000 .0Ot
had been transferred to New Orleans. the
latter operation being caused, OF course,
| by the speculation in cotton. An attempt
| was also made by various houses identified
with Western spectators to get up scare
over the appearance OF the Hessian fly in the
| winter wheat belt. satirical but none
the less truthful comment upon the basis
| for such an effort was the failure of wheat
prices on the Produce Exchanges to adj
vance. The days selling converged upon
three stocks especially. Missouri Pacific
New York Central and st. Paul The price
| of each of these stocks declined at one time
over two points. The weakness of ST.
Paul was quite unexplained save by the
general reasons already given. One of the
speculative rumors that have lately been
circulated ia that it IL possible that in the
fall the st. Paul directors will conclude to
| put the common stock on per cent.
basis upon the broad ground that the stock =
holders of the company should be satisfied
with this rate. This is laughed at, Of course.
by all intelligent people, and 1t is very
doubtful if it has actually influenced the
sale of single share OF stock held either
for investment or speculation. In many
ways. however, the ST. Paul common shares
are market leaders and rise or decline
in them affects the general market greatly:
hence they are favorite objects for either
upward or downward manipulation as the
case may be. At present, the short in
terest in st. Paul is the largest in any por-
ton of the market. The idea persistently
obtains that some plan of financing the
large terminal and other improvements
on the New York Central Railroad property
has been matured and that the decline in
the price of the New York Central shares
will be found, eventually, to be connected
with this operation. The suggestion that
the New York Central stock that has been
recently sold is new stock issued by
the company Is controverted by the fact
that no new stock has yet been authorized
by the New York Central shareholders.
But there are, of course, ways in which
such an issue of stock could he anticipated
The weakness of Missouri Pacific repre-
sented more genuine liquidation than
was observed elsewhere in the market
There has recently been great deal OF
buying OF Missouri Pacific by GUS
toners of commission houses based upon
the earnings Of the company, the approach
railroads and the steadiness with which
the stock has held its price in the market
A fair share of the stock thus purchased
was undoubtedly sold o-day.
On the other hand, certain stocks to-day
we're particularly strong. These were all
the Erie issues. Manhattan, Delaware and
Hudson, Mexican National preferred and
AmalgaI.lated Copper. The further advance
To- ., -
an unfavorable influence upon the stock
market. but it may be doubted whether
this influence was more than academic.
Cotton is probably selling too high at
present and its price has clearly been the
subject OF artificial manipulation and
excited speculation. There is no doubt
that at prevailing prices for the staple
many cotton mills both In this country and
Europe find it hard to do business proftably
and that the textile trade is also thrown
into more or less confusion. 1t must not
be forgotten, however, that there is sub
stantial basis for the greater part OF the ad-
vance in raw cotton that has occurred.
The season began with small cotton stocks.
the crop was greatly impaired by bad
weather, the planting Of the current crop
has taken place under very disadvantageous
COUtltiOus anu IL IL HOW duInlIteQ tnat the
consumption Of cotton has been UNDER
estimated by statisticians in all parts Of the
world. That the present price of the staple
has much to justify it is disclosed by the
fact that spot cotton is selling at prices not
greatly below those of the options for the
future delivery Of the article. Spinners and
others who have failed to recognize these
facts now find themselves in sorry plight.
naturally, but 1t is al possible, however, for
cotton to sell at ~ cents a pound on it's
merits in this country az It is for wheat to
sell at 81 bushei. All this should be re-
membered In the current sweeping censure
of the cotton market.
The one striking incident OF the day,
however, and 1t was favorable develop
ment which should legitimately outweigh
all the unfavorable considerations Affect
ing market values that have been mem
was the advance OF the quarterly
dividend rate of the Calumet and Hecla
Mining Company to $40 a share as COM
pared with IS a share for the last quarter
and IS a share for the same quarter last
year. This action by the richest and most
copper-producing company
in the country is proof positive of the
changed conditions in the copper mining
and must strengthen the deter
mination OF all the owners Of the Amalga-