280 



FINANCIAL REVIEW OP 189G. 



moving to Europe quite rapidly. Good prices were 

 maintained, and in September there was an advance 

 to 8 cents against 74 at the end of August, the 

 price later falling, by reason of favorable crop ad- 

 vices, to 6-HJ cents in December. The statistician 

 of the Department of Agriculture reported average 

 farm prices on Dec. 1 as follow : Corn, 21-fo cents 

 against 26-fV last year; wheat, 72-^ against 50-fr; 

 oats. 40-& against 44; and cotton, 6^ against 7f$. 

 Pursuant to the usual custom in this review, the 

 table given at the bottom of preceding page shows 

 the value of the crops on the basis of prices at New 

 York at the beginning of the year. 



Stocks. The stock market was active and gen- 

 erally better during the first four months of the 

 year, and unsettled and lower after May until the 

 election ; but the rise following that event was only 

 temporary, and the tone was inclined to be heavy 

 thereafter. The market was more or less disturbed 

 at the beginning of the year by the tension in Lon- 

 don caused by the Johannesburg raid, and also by 

 the pending bond issue, the outcome of which was 

 felt to be somewhat uncertain, and, moreover, it was 

 feared that it would result in stringent money. 

 Gradually a more encouraging view prevailed, and 

 the market rose under the lead of the Grangers and 

 Sugar. After the middle of the month more favor- 

 able news from London, indicating a relaxation of 

 the political tension, and good buying of stocks by 

 the arbitrage houses and by local traders kept the 

 tone strong to the close of the month, and the great- 

 est improvement was in Sugar, Central New Jersey, 

 the other coal shares, Consolidated Gas, Electric, 

 Illinois Central, Lake Shore, the Grangers, Southern 

 preferred, and Union Pacific. The large popular 

 subscriptions for the Government bonds and a 

 modification of the terms of payment, so that there 

 was less probability of disturbance to the money 

 market, stimulated an improvement in stocks early 

 in February, but subsequently realizing sales by 

 local and arbitrage operators caused more or less 

 important declines. The payment of the first in- 

 stallment on the Government bonds was prompt, 

 and this fact, and also the large increase in the 

 Treasury net gold, encouraged rebuying to cover 

 short contracts after the middle of the month, and 

 the tone was strong until toward the close, when 

 disquieting rumors regarding the financial condi- 

 tion of the Baltimore and Ohio Railroad and the 

 action of Congress in the matter of the Cuban bel- 

 ligerents caused liberal selling, and the market 

 closed generally lower, though, compared with the 

 opening, there was an advance in Sugar, Consoli- 

 dated G-as, the Grangers, Louisville and Nashville, 

 and Chicago Gas. The appointment of receivers 

 for the Baltimore and Ohio, the beginning of a con- 

 test between the American Tobacco Company and 

 the rival manufacturers, and reports that there 

 were large stocks of corn in farmers' hands com- 

 bined to make the market irregular and generally 

 heavy during the early part of March, but later 

 there was an improvement in the tone and gradually 

 prices advanced and, though irregular and at inter- 

 vals feverish, the market was generally better at the 

 close, with Tobacco showing the greatest improve- 

 ment on a report that the differences with the rival 

 manufacturers had been settled, and there was also 

 a sharp rise in General Electric, due to rumors of 

 negotiations with the Westinghouse. The Northern 

 Pacifies were unfavorably influenced by the an- 

 nouncement of the plan of reorganization, which 

 provided for heavy ass"-,smcnts on the stocks. The 

 tendency of the inarket was generally upward in 

 April, stimulated by good buying of railroad mort- 

 gages and of first-class investment properties for 

 domestic and foreign account, by encouraging crop 

 prospects, easy money, and by an improvement in 



general trade. Toward the end of the month a 

 feverish fall in Tobacco and in General Electric 

 had a partially disturbing effect. The most impor- 

 tant advances during the month were in Sugar, the 

 Grangers, Louisville and Nashville, Missouri Pa- 

 cific, Lake Shore, and Manhattan. In May the 

 market began to be influenced by preparations for 

 the presidential campaign, and operators were dis- 

 posed to be cautious. The prominent features were 

 a rise in Bay State Gas on reports of consolidation 

 schemes, a fall in Rubber, due to dissensions in the 

 management, a drop in Tobacco, and a decline in 

 Manhattan, which was affected by competition of 

 surface railway lines, but later this stock recovered 

 on the decision of the Court of Appeals against the 

 constitutionality of the rapid-transit act. After the 

 middle of the month the feeling grew better on as- 

 surance that the Republican National Convention 

 would adopt a gold plank in the platform. The 

 trend of the market for the month was shown by 

 sharp declines, compared with the opening, in To- 

 bacco, the Grangers, Chicago Gas, Electric, Man- 

 hattan, Missouri Pacific, Reading, the Rubbers, and 

 Tennessee Coal and Iron. In June the market 

 was generally heavy. The trading was small early 

 in the month, but after the second week there 

 was more activity and an improved tone on the 

 nomination of McKinley and Hobart at St. Louis. 

 This was followed by large realizing sales and by 

 some bearish pressure encouraged by reports that 

 the Democratic National Convention at Chicago 

 would advocate free silver coinage, and subse- 

 quently engagements of gold for shipment to Ger- 

 many had a disturbing effect. The market was 

 unsettled and weak at the close, and the most im- 

 portant declines for the month were in Sugar, the 

 other industrials, Bay State Gas, General Electric, 

 Manhattan, Tennessee Coal and Iron, and Western 

 Union. 



The dominating factor in the market in July was 

 the action of the Democratic National Convention 

 at Chicago in nominating William J. Bryan on a 

 platform advocating free silver coinage. Early in 

 the month it was felt that the advocates of silver 

 would be in control, but it was then thought un- 

 likely that such radical resolutions would be advo- 

 cated as were subsequently embodied in the plat- 

 form. There was some arbitrage buying of stocks 

 during the early part of the month, and this en- 

 couraged local purchases, but free selling of Sugar 

 and of Tobacco later made the market irregular, 

 and after the middle of the month shipments of 

 gold to Europe on order, liquidation of speculative 

 accounts in stocks, and the serious illness of Mr. 

 Cornelius Vanderbilt contributed to make the 

 market weak and at intervals panicky. A crisis 

 was narrowly averted on the 20th. Persistent sell- 

 ing based upon the nomination of Mr. Bryan at 

 Chicago, and by the Populists at St. Louis, and also 

 upon large engagements of gold, a strong tone for 

 exchange, and the low Treasury gold reserve, caused 

 sharp declines in the leaders. At this juncture 

 prominent bankers took measures to arrest the out- 

 ward gold movement, and thereupon the market re- 

 covered, and it was generally strong to the close. The 

 important declines for the month were in Sugar, 

 the other industrials, the Atchisons. the Coal shares, 

 General Electric, Manhattan, Louisville and Nash- 

 ville, Missouri Pacific, Southern preferred, Ten- 

 nessee Coal and Iron, Pullman, and Western Union. 

 The continued selling of stocks influenced by the 

 growing fear of the election of Mr. Bryan kept I lie 

 market unsettled early in August, and on the 7th 

 vigorous raiding by the bears, aided by the failure of 

 the Diamond Match deal at Chicago, caused a 

 panicky fall, and in many cases the lowest prices 

 for the year were then recorded. Then came a re- 



