New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-11-16
THE FINANCIAL MARKETS.
NEW LOW RECORDS FOR THE STEEL S
General Trading in Stocks Control of the Bear Eeen-Aoney
Rates and Foreign Erchange Conditions Railroad Earnings
THE WEEKS OPERATIONS IN STOCKS

A powerful bear party has been at work in
the stock market in the last two .eeks, and in
the absence Of public support it has been able
10 bring about lower prices for securities. This
element evidently is made up of many OF the
same persons who were such important factors
in the decline OF August and September. Its
success at the periods named was helped by
forced liquidation and the same factor al
though TO a much less extent. is assisting In
the present downward movement Bear opera
tors are cunning for investment holdings
Every trick known TO the trade is being en-
ployed 10 scare investors into liquidation but
so far their efforts have not been productive OF
great results The general holders OF American
investment issues are, as a rule, sensible
farseeing and conservative set Of people, who
evidently see no reason in present conditions
20 help a bear campaign along b. throwing
over their securities. II may be granted that
there are certain adverse features in the sit
uation. but there have been adverse features
before. and yet American investments still
possess great intrinsic merit. Some investors
may be selling certain issues for the purpose
OF reinvesting their money in the bargains
that may be had in various parts Of the list
they may be selling TO use their funds In
the money market. but there is little evidence
OF investment sales on the theory that the
American investment situation is going 20
pieces
REIMBURSEMENT is going on in the business
world. Prices are coming down to more nor
NAL basis and after the completion OF this
change there will doubtless be little OF the
pessimism that now prevails in Wall Street.
Stock market prices have been discounting the
developments in the business world, but a
normal decline in stocks has been taken ad-
vantage Of by professional spectators to push
quotations beyond the limit OF sense and rea-
son. Later on a readjustment 10 a higher
level viii take place in stocks In the mean
while there viii be good cause for uneasi-
ness II prices work still lower. It took long
time 10 turn the tide OF the bull market that
eliminated a year ago. and It may require
much time to change the course of the current
bear market. Outside OF the individual losses
suffered IN the bear market, which of course
have been most grievous, the effects Of the long
decline have helped rather than injured the
situation. They have brought - an end wild
cat promoting. They have eliminated from
the business field weak and unstable concerns
that have done more harm than good. They
have broken many industrial bubbles and they
have curbed a speculative excitement that at
one time promised to upset the whole indus
trial fabric. Conditions have been moving
slowly toward a more healthful position. and
nom current indications there is no reason to
suppose that trade readjustment will run into
industrial panic.
With enormous crops and big exports. there is
no excuse for encouragement over the coun-
try's outlook. The corn crop this year was the
largest on record. with one exception. while the
wheat harvest was large enough to supply a
large surplus for export. Cotton is going abroad
in great volume at the best export prices on rec
ord. and as a consequence this country's in
crease IN wealth from its cotton crop alone Will
be heavy. The men who cornered the cotton
crop predicted that Europe would come into this
market for cotton at high prices. These pre-
dictions were not believed by the majority OF
people. The cotton spectators. however won
and one Of the few corners ever engineered in
the financial or grain markets was successful
Foreign supplies Of cotton are low. Foreign
buyers have held off in the hope OF lower prices
this side, but their necessities are now so
urgent that they are simply compelled to take
American cotton at present quotations In the
last week exchange was made faster than the
demand for remittance could absorb it, and al
though the foreign bankers were opposed to
sending gold 10 this side, considerable amount
OF the meta was engaged for import for New
York The price OF bar gold has advanced in
London. but with a slight further fall in sterling
this country viii he able to import English SOW
ereigns. the par value Of which is S665. De-
nand sterling declined in the week 20 4S2s<. the
lowest point with only one exception. since 1893
Sterling exchange at Paris on London advanced
and thus London was placed in the position
where both the United States and France were
bidding for its gold.
AS the interior demand for funds has taken I'm
TWO weeks an amount Of money about equal to
normal outward food Of currency for the entire
fan season. the chances are that the outgo VIII
soon cease. although it should be borne in mind
that the higher price for cotton this year re-
euires more money for financing the crop. Last
week however. direct shipments Of money to the
interior were much lighter than in the preceding
week while the total loss by the banks on all
accounts was a little above 100000, as
compared with 100000 in the preceding
week and Sl50000Oe in the week before
that Money market rates DO not indicate
scarcity Of funds at this centre. both call and
time money being in good supply al rates within
the reach Of the ordinary borrower. Call money
ruled in the week at , per cent. with high rate
OF per cent and low rate of 2lk per cent
Time loans We're duh at from 81 10 per cent
while commercial paper Of which the offerings
were light, was quoted at 6G61s per cent. The
Bank Of EnEland's minimum rate OF discount
remained al per cent. with open market dis
counts at 4lzG42s per cent In Paris the open
market rate was rs per cent. and in Berlin and
Frankfort 39sG3& per cent. At the close OF the
week sterling exchange at this centre showed a
frrner tone recovering from 4S3 for demand to
4s3l4 G4s3iz.
New low price records for the year were made
by a number Of stocks in the week notably
the United States Steel shares and Pennsvl-
rania- The attack on Pennsylvania brought out