The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-21
GOSSIP OF VAL STREET.

..o-. account prices recovered moderately
A. rho opening Of yesterdays stock market
..ssjon aud them under resumption OF
rridN selling movement. they fell to
i.rel appreciably lower than any previously
.ched on this decline. Traders, to whom
Hs "(eens' Of the market is everything.
old that the support. otherwise scale buy
~. with which they had boon In almost
nnnstant contact on Friday. was renewed
..s,erday only at lower range Of prices.
Instead Of following the recoveres that were
ucde AT the outset of trading. it diminished
cary peroep,ibly. and between the point at
rhicb the support had left of on Friday
md the profile matte point at which It would
\. reueweh there WAS room for further
.c,;v,tv on the part Of the bear element.
60 long as the supporting orders under the
maIket continue o be lowered each day.
h.ar operators will offer stocks down to
Voc, them. inducing fresh liquidation all
The time Eventually. when 1t Is desired In
.srnest TO arrest the decline, the supporting
orders will cease to he lowered and tho brokers
1bo have been buying on scale down begin
then q bid for stocks. On previous occasion
.cae buying followed Union Pacific down to
usl. The stock rallied about 2 per cent.
and then fell back to H. where the real buy
Inc was renewed, The same was true In
other stocks and gooo recovery iohowen
in tho general market.
The heaviest selling yesterday converged
mon stocks TO which operations for tho
declne had already impaired an impetus
NOT easily overcome, notably the United
States Steel shares, Union PACING, 81 PauI
and AmalEanated Copper The Steel stocks,
hoveyer. showed somewhat better resistance
thsn on friday, due, as some thought, to the
,stIrenent OF large short contracts under
.oy.r OF the more pronounced weakness
.jawhere In the List. Steel common, for
.,,mple, on transactions exceeding 1000
,h,res, showed net decline at the close OF
hut v per cent. Its maximum decline was
only \ per cent.
The largest short interest existing any
vhere In the market Is probably IN the Steel
stooks. The strength Of the bear specula-
lion has conferred upon them. Their decline
has Affected larger and more miscellaneous
body OF sentiment than could possibly have
heep otherwise reached, and has doubtless
been the or incipal inducement OF lot Of tho
general liquidation recently seen In the mar
tst After a bear crowd has carried its
onerations to the point OF resistance In ono
stock II will agrees upon others, buying
tina one heavily to close its short interest
while selling the others openly. but perhaps
not 40 heavily. The object Of bear crowd
/, ultimately TO buy back what 1t has sold
the purpose Of bull crowd Is to sell what IL
ends. bull crowd having advanced one
stock will cover it's selling by bidding up other
s,ock, in a demonsuative manner: while
a bear crowd, having depressed stock, Will
eoyer its buying by attacking tho market
At other points.
Il never buy market. said trader yes
urday. whose weakness cannot under
stand"
Each week that passes without a disaster
to the crops Is bull asset
Yesterdays decline was no moro refersbls
than fridays. and perhaps less so. to any
specific thing. The bank statement was
made pretext for redoubling the profea-
sional pressure upon the market but for an
hour preceding its appearance there had
been heavy selling throughout the active
list from various sources. There was no
london market and therefore no direct
liquidation from the other side. When tho
balance OF trading sentiment is against the
market. as it is at the present time, floor
operators alone are capable OF making a
considerable impression upon prices. The
extent OF their operations is generally under
estimated. great many stocks bought on
fridays break by commission houses and
traders for a turn were probably resold yea.
terday at loss.
Bull news Is but wasted ammunition on .
market of falling prices.
There has been a good deal Of dubious |
comment recently OF the subject OF tho |
enormous creation OF bonds since the drst |
Of tho year. II is known that several OF |
the largest railroad issues have been dis |
appointment to the houses and speculators |
that took them enthusiastically Just as tho !
edge was leaving the bond market. and also |
that In the last Japanese issue there Is a large
sDarula tiya hill infnrest that Gould ut ~
liquidated without loss on the present mar |
ket. Firms and individuals now hung up" |
with these various issues because the mar
ket for them has fiattened out are hoping |
that japanese naval victory will stimulate !
G big speculation in the Japanese bonds |;
They predict that a naval triumph for Japan |
would advance the Japanese bonds ten points |
over night and that a profitable termination |
NJ the bull speculation in that quarter OF
the bond market would impart a bullish !
impetus to the whole Of It. Purely speou- |
lative operations in bonds have been con- |
Quoted on larger scale this year than per- |
haps ever before. The bond market, some
say. is now suffering from overspeoulation
in the issues which are selling below their
subscription prices
Banking houses that have recently
financed large bond issues. notably one for
800 900 600 are said to be in no haste to
fdent Of having better market little later
on. and are meanwhile biding their time
An operator who has had much experience
on these lines was asked last week whether
the new Pennsylvania bonds. in his judg.
ment, could he made attractive. He thought
that they might easily be made so. 1T can
he done" he said. "by making Pennsylvania
stock an important and attractive feature
Of the market. as believe it will be. There
Is room for a movement In tho stock. Abg
speculation could be put into IL around l5O
where. in my opinion. 1t Is entitled to sell,
and that would make these bonds attractive
enough I think you will see that when the
market is right for 1t Pennsylvania stock
will give a very good account OF itself"
The talk about undigested securities. said
\ R Stickney. in speech a Omaha two years
EGO, lis nonsense. At price. the di gestive
ability Of so,oooo 600 OF people cannot be meas
ured
" is privately asserted. on very excellent
authority. that the st. Paul has definitely
abandoned its intention OF building to the
Pacific Coast, 1t will build some new mleag &c,
us friends say, but will stop far short OF tide
water. where terminal property has already
heen acquired. because IL has been able to