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FINANCIAL REVIEW OF 1888. 



when news that a syndicate had bought $24,- 

 686,000 of the Reading 4-per-cents, and $11,- 

 946,880 of the first preference incomes caused 

 a rise in that stock in which the whole market 

 sympathized. During the last few days of the 

 month, however, the bears renewed their at- 

 tacks upon the market, assailing Missouri Pa- 

 cific, New England, Reading, and St. Paul, and 

 the fall in these made the movement more or 

 less unsettled to the close. Stocks were un- 

 favorably affected during June by the pro- 

 longed discussion of the tariff bill in the 

 House; by the action of the Iowa railroad 

 commissioners in promulgating rates below 

 those formerly ruling ; by cuts by the trunk 

 lines; and by reduced dividends on some of the 

 principal Western roads. One prominent event 

 was the placing of the Reading 4-per-cent. 

 fifty-year loan in London and New York, and 

 another was the purchase by the Pullman of 

 the Baltimore and Ohio palace-car outfit. The 

 course of the market was irregularly down- 

 ward until about the middle of the second 

 week, when there was a reaction, due to a cov- 

 ering of short contracts, and prices were not 

 affected by the news, on the 15th, of the death 

 of the Emperor Frederick, of Germany, as the 

 foreign markets were not in the least influ- 

 enced thereby. During the third week the 

 tendency was generally upward, and the ex- 

 istence of a large short interest not only aided 

 in sustaining prices, but it encouraged the 

 bulls to advance some of their specialties. The 

 market gradually improved in tone and in ac- 

 tivity during July. Crop-prospects were ex- 

 cellent; the Iowa railroad managers were 

 looking for a favorable decision in their suit 

 before the United States Court to restrain the 

 Iowa railroad commissioners from enforcing 

 the new distance tariff of rates, and there was 

 good buying of stocks for European account. 

 The Grangers, the coal-shares, the Gould spe- 

 cialties, and the Northern Pacific properties, 

 took the lead early in the month. Then came 

 a rise in Western Union, based upon the fa- 

 vorable outlook for the ending of the cable-rate 

 war, and later there was an advance in Louis- 

 ville and Nashville, encouraged by the ex- 

 pectation that a stock dividend would soon be 

 declared. New York and New England and 

 American cotton-seed oil certificates were the 

 favorites with speculators in this class of stocks, 

 and Delaware, Lackawanna and Western and 

 Delaware and Hudson were directly affected 

 by the improved prospects of the coal-trade. 

 Toward the close of the month the Grangers 

 were favorably influenced by the decision of 

 Judge Brewer in the Iowa railroad cases, and 

 thereafter for the remainder of the month the 

 market was active and strong. In the first 

 few days of August the leaders were New Eng- 

 land, Lake Shore, Western Union, Reading, the 

 other coal properties, and Union Pacific. The 

 Grangers were favorably affected by news from 

 the crops, and soon after the opening of the 

 month one feature was a well-sustained specu- 



lative movement in Delaware, Lackawanna and 

 Western. During the first week there was a 

 sharp fall in Central New Jersey, caused by tlie 

 marketing of a block of stock owned by the 

 Lehigh Valley, but when this was disposed of 

 there was a rapid recovery. The tendency of 

 the market was downward in the second week, 

 the bulls among the traders having sold their 

 stocks, and the bears being encouraged to in- 

 dulge in raids. The Grangers were affected 

 by news of frosts, and there was some selling 

 of St. Paul in expectation of reduced divi- 

 dends. Early in the following week there 

 was a manipulated advance in the last-named 

 stock, the coal-shares were pushed upward, 

 and later the Vanderbilt specialities took the 

 lead, followed by the Northern Pacifies and 

 the Oregons, the two latter being affected by 

 the news that the remainder of the North- 

 ern Pacific third mortgage had been sold to a 

 Frankfort syndicate. Toward the close of this 

 week the Grangers fell off in consequence of 

 cutting of rates, and the Canadian stocks were 

 unfavorably affected by the message of the 

 President on the relations of this country with 

 Canada. During the last week in the month 

 there was a further advance in Delaware, 

 Lackawanna and Western, and in the other 

 coal-shares, in the Northern Pacifies, and in 

 the Oregons, and later in the Grangers, which 

 were influenced by the decision of State Judge 

 Fairall in the Iowa railroad cases, he restrain- 

 ing the commissioners from putting into effect 

 the new tariff. The market closed strong. 

 European purchases of stocks, manipulation of 

 leading Granger and coal properties, based 

 upon a prosperous crop and coal season, and 

 liberal buying of stocks by domestic investors 

 and speculators caused prices to rise rapidly 

 during the early part of September. Then 

 followed a sharp fall in St. Paul, due to the 

 passing of the dividend on the common stock, 

 succeeded by as rapid a rise on news that the 

 foreign stockholders had combined for mutual 

 protection against the management, and one 

 prominent feature thereafter was a well-sus- 

 tained advance in New England. The market 

 was generally strong to the close. One feature 

 toward the end of the month was a heavy fall 

 in Hocking Valley on the news that the arbi- 

 trators in the suit against J. S. Burke had de- 

 cided against- the company. Considering the 

 fact that the news was unfavorable early in 

 October, stocks held up remarkably well. 

 There were unsettled grain-markets resulting 

 from the wheat deal at Chicago, a good in- 

 quiry for money for the West, a suspension on 

 the 10th of purchases of 4-per-cents. by the 

 Secretary of the Treasury, the financial embar- 

 rassment of the Atchison, Topeka and Santa 

 Fe, and liquidation by some of the pools in 

 the specialities. Early in the second week the 

 bears indulged in frequent raids, but the effect 

 of these was to some extent counteracted by 

 manipulation of New York and New England, 

 the Grangers, Union Pacific, and Reading, and 



