The sun., 1903-12-09
FINANCIAL AND COMMERCIAL.



1t is highly probable that the spectators
who have been buying stocks in the last
few days would, to n greater or less extent :
have made to-day time Of profit taking
even If this course had not been suggested
nv n decidedly tirrner tone in current rates
for the Use of money. But the event last
named made realizing salesof stocks almost
inevitable. our bank reserves at the pres
ent time, while not making an extremely
unfavorable comparison with those oil
previous seasons. are still in no condition
to warrant any enthusiastic conduct OF n
great speculation for the rise. We are,
it is true getting gold from England, which
partially refills our depleted bank Golfers.
But the circumstances under which TINS
has been done have resulted in a very con-
fused financial situation in the English
capital, which must. according to any
logical view of the case, or unless our de-
mands for the yellow metal cease, soon
result in rise in the Bank of England's
rate of discount, and this result. in turn,
will have unpleasant consequences, here
as well as in England. Moreover, as recent
bank statements have shown, the gold
received in this city from Europe has been
speedily transmitted to the interior OF the
country, and, while money is beginning to
slowly return here from the grain producing
regions, there are no signs Of such return
from the cotton planting section; indeed,
our bankers are still daily shipping large
sums Of money to the South, There ls
growing disposition, plainly evident on the
part Of all those who concern themselves
with the movement Of money from one
section of our country to the other, to post
pone considerably the time hitherto fixed
by them for the return to this centre OF the
money sent out for crop moving purposes;
the reason for this being, first, the eXtraor-
dinarily large sums required to pay the
Southern planters for their cotton this
year, and, second, the desire of merchants.
business men and farmers in the West. as
well az in the South, but more particularly
In the section last named, to retain this
money this year for longer period than
usual
The market opened this morning with a
burst Of activity on the side OF higher prices.
and continued strong and active until
nearly midday. The buying was especially
vigorous in the granger railroad shares
the cunning effort being made to convey
the impression that prominent banking
interests were the purchasers. The open
offering OF money on call in large sums
by a very powerful banking house was /,
naturally enough, at first taken by many
speoulators as favorable indication, in
that it augured continuing ease in money
but the less favorable inference from the
fact was in due time drawn that banking
firms which were loaning money freely
a ol,b Io;n
they found no other use for it; that is to
say, that they were not employing 1t in
buying securities. The reactionary move
ment soon began. and whatever manipula-
ton there was in the market thereafter
was clearly for the purpose Of allowing
liquidation to take place The selling
was most noticeable In the traction stocks.
especially in Brooklyn Rapid Transit, and
in American Sugar and Refining and Anal
gamated Copper, these stocks being those
which have enjoyed the earliest and largest
advance in price At the close Of the market
prices Of nearly all stocks had declined
notably from the high prices made in the
carly part Of the day, although closing
quotations were generally somewhat above
those Of last night
The influential factor in the day s develop
ments, aside from the rise in money rates,
was marked advance in sterling exchange.
After 8 o'clock, or too late, Of course, to
affect the stock market, the advance was
continued in really sensational way, de-
mand sterling exchange selling At S4.sSS
as against A.s26 two days ago, rise of
nearly u Of cent. 1t was the consensus
among foreign exchange houses that, with
sterling exchange at this figure, gold i'm
ports are entirely unproftable The matter
derives additional importance, moreover.
from an advance, even above the figures
Just quoted. in the price OF sterling bills
for next weeks deliveries, 1he reason
for this movement is ascribed by authority
than which none is better informed as
being due to preparations for the annual
window dressing operations in London
that is to say calling in of funds by Lon
don houses in order to repair end of tho ear
balances. 1t appears likely, therefore,
that we can only take gold from England
during the next thirty days by bidding for
it in the shape of a round advance in money
rates on this side. The bearing Of this as
a stock market factor is clear.