New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1903-05-29
BONDS.
THE DAYS OPERATIONS IN STOCKS

Liquidation and bear pressure were resumed
in yesterdays market. selling by holders OF
stocks bought at higher prices being active
throughout the day. In many stocks losses Of
from to 2 points common. while in few
issues heavier declines were reported, as Tor
instance. IN Amalgamated Copper. which broke
4 points. TO 57as: Anaconda, Slz TO 50; Consoli-
dated Cas- 10 1877: General Electric 81 10 Isl.
and New-York Air Brake. 49, TO 155- OF the
active issues Rock Island was the chief point
OF bear attack and genuine liquidation the lat
ter coming from people who bought the stock
many points above the prevailing level and who
were large operators on the bull side Of the
market last year. Large holders Of stocks have
been heavy sellers in the last ten days, and
their losses II St Paul. Rock Island and other
prominent issues have been enormous. Weak
ness IN the copper stocks followed a sharp re-
duction IN the price Of the metal IN London,
while selling IN the general railroad list was
helped by reports of strikes among Western
railroad freight handlers. Significance was also
attached TO the throwing over Of blocks Of in
vestment stocks in high-priced shares, such as
Consolidated Gas and General Electric. ostcnsi-
bly, for the purposes Of raising funds 10 protect
other holdings Rock Island sold down 10 1872.
but rallied TO 351s before the close. The Gould
stocks were fairly well supported; also the Steel
shares ard Peoples Gas. Mexican National
common was strong and a higher price was pre-
dicted. In the afternoon sterling exchange ad-
vanced 10 points above Wednesdays close
Final prices were above the lowest.
The plan for the readjustnent of the National
Railroad Of Mexico's capital by which the Mex
ican Government Will become q large stockholder
Of the company, while the railroad viii receive
a number Of most valuable concessions. is
most fortunate development for present owners
Of the stocks and bonds Of the corporation.
People who own the common stock may
naturally look forward to advance in this
issue as its equities have been largely increased
in value while as under the plan the new sec
ord preferred stock. which is entitled 10 per
cent preferential dividends and ranking with
the deferred stock in profits above that amount,
VIII give the present common stock value of
upward Of $50 a share. or over points above
its current market level The Mexican Govern
ment viii hold all the deferred stock and some
Of the preferred. and as a consequence the
present common stockholders viii become sec
ond preferred holders. Under the plan the Mex
lean National viii secure control OF the impor-
tant Mexican Interoceanic Railroad and il viii
also secure a concession from the government
by which there shall he no competing railroad
built IN an important zone Of the Mexican Ma
IiOnal territory for twenty years. Mexican Ma
tional viii become the largest road in the MeXi-
can Republic. and its securities should prove
profitable purchases In the last few years this
system has been rebuilt phs sically and financial
~ while its earnings have been increasing At
rapid rate. The gold standard eventually will
be esta hshed as the unit Of value in Mexico
and. with this prospect in view. capital shows
no hesitation in moving into Mexican industrial
and railway enterprises.
According 10 the known movement of money
since last Friday. the local banks have gained
over 5000 in cash holdings. while the weekly
statement which viii be published to-day may
show q large enough reduction in loans and de-
posits 10 cause a substantial gain in reserve
above legal requirements. It is thought prob
able that the heavy liquidation in stocks in the
week has affected the loan item. Receipts Of
currency from the interior are unusually heavy.
even for this period Of the year. and as a con-
sequence gold exports have not had any effect
on money rates Call funds may rule higher
for brief period around the first of next month
but q summer Of easy moneE is confidently eX-
pected
The heavy speculative liquidation in stocks in
the last few months has strengthened the mon
etary situation at this centre and II has been
effective in elimination Of adverse conditions
that have Cor long time hung over the securi-
ties market AS long as there is no active pub
lie demand FOR securities prices will doubtless
be susceptible 10 bear pressure. but it may he
well 20 remember that a bear panic is de-
cided possibility in market in which prices
gre constantly hammered.
THE DAYS OPERATIONS IN BONDS.