FINANCIAL REVIEW OF 1896. 



281 



action due to somewhat less apprehension of the 

 Mr. Bryan, and, though irregular, the 

 marki-t was generally better for the remainder of the 

 mouth, buying being stimulated iu the. third week 

 by a rapid fall in exchange, by the engagements of 

 gold in Europe for shipment hither, and by Mr. Mc- 

 Kinley'e letter of acceptance. The stocks showing 

 the greatest declines at the close were Louisville and 

 Nashville, Pullman, Manhattan, the Grangers, and 

 \\Vstern Union. Growing confidence in the success of 

 the campaign for sound money, the improvement in 

 the Treasury situation, and the large imports of gold 

 stimulated activity and higher prices in September. 

 The Republican success in Vermont and Maine and 

 the nomination of Palmer and Buckner at Indian- 

 apolis were followed by important advances in the 

 market, and the tone was quite strong to the close. 

 The most decided gains for the month were in 

 Suirar. all the other industrials, the Atchisons, the 

 Coal shares. Consolidated Gas, Lake Shore, Louis- 

 ville and Nashville. Manhattan, Missouri Pacific, the 

 Northern Pacifies, Southern preferred, Tennessee 

 Coal and Iron, Union Pacific, and Western Union. 

 The strong tone continued until about the middle of 

 October, when active money, evidence of hoarding 

 of gold, some feeling of apprehension of the election 

 of Mr. Bryan, and liquidation of speculative ac- 

 Qounts made the market irregular and lower, but 

 later there was a recovery on positive assurances 

 from the Republican National Committee of the 

 election of Mr. McKinley, and the tone was strong 

 to the close notwithstanding money on call loaned 

 during the last few days of the month at the highest 

 rates of the year. The most important gains for 

 the month were in Sugar, the Atchisons. the Grang- 

 ers. Chicago Gas, Louisville and Nashville, Man- 

 hattan. Pullman. Reading, Tennessee Coal and 

 Iron, Union Pacific. Leather preferred, and Rub- 

 ber, while the weakest stock was Tobacco, which 

 was vigorously raided. Immediately after the elec- 

 tion there was a sharp rise in the market, during 

 which those who had bought prior to that event 

 sold their stocks and withdrew their support. 

 Prices gradually sagged off, and though there were 

 occasional reactions the tone was generally heavy 

 to the close of November, influenced in part by 

 some fear of action either by the President or by 

 Congress in the matter of the Cuban belligerents. 

 The most important gains, compared with the open- 

 ing, were in Sugar, Cleveland. Cincinnati, Chicago 

 and St. Louis, Lake Shore, Manhattan. Missouri, 

 Kansas and Texas. Northern Pacific preferred, Pa- 

 cific Mail, Tennessee Coal and Iron. Rubber, and 

 Consolidated Gas, while the greatest losses were in 

 Bay State Gas, Central New Jersey, Long Island, 

 and Leather preferred. The market was unfavor- 

 ably influenced in December by liquidation and by 

 some bearish pressure induced by the action of the 

 Senate in the Cuban matter, and on the 18th a radical 

 proposition introduced by Senator Cameron, recog- 

 nizing the independence of the ' Republic " of Cuba, 

 had a disturbing effect, causing a panicky fall in all 

 the leaders. There was a recovery on the following 

 day on the statement by Secretary Olney that the 

 resolution would be regarded simply as an expression 

 of opinion by those who voted for it. and also that in 

 the matter of recognizing an independent state Con- 

 gress has no power whatever to bind the executive 

 department. Congress adjourned for the holiday 

 recess in the following week, and the Cuban matter 

 ceased to be a disturbing factor, but toward the end 

 of the month the failure of the Illinois National Bank 

 of Chicago, followed by failures of other banks in the 

 West, encouraged the bears to renew their demonstra- 

 tions, and the market was heavy to the close. The 

 most important declines were in Sugar. Consolidated 

 Gas, Delaware and Hudson, Long Island, Man hat- 



tan, Chicago. I'.urlington and Quincy, Pullman. Ten- 



1 and Iron, and Rubber preferred. 

 Total sales of >to(/k.s at the New York Stock Ex- 

 change for isiir, were 54.4'.iO.<i4:{. a-ain-t <;<;,> 

 in is!)-); 4!).07.->.o:',2 in ]s'.)4: Mi.'.i77>:i!) in 



r5,092 in is! 12: fi'.MCiUis'.i in L801; 71,282885 

 in ls<)0: and 72.014.600 in 1889. 



The following table shows prices of leading stocks 

 at the beginning of the years 1895. IS'.Hj, and 1M(7 : 



The following shows the highest prices of a few 

 of the speculative stocks in 1895, and the highest 

 and lowest in 1896 : 



* Before payment of assessments. 



Foreign Exchange. The exports of merchan- 

 dise for the year ending Dec. 31. 1896, were $181,- 

 Ols.281 above those for 1895. and the imports of 

 domestic and foreign merchandise were $121.113.114 

 less. The excess of merchandise exports over im- 

 ports for the year was $325.322,184, against $23,- 

 1U0.789 for 1895. The excess of exports over im- 

 ports of merchandise, coin, and bullion for 1896 

 was $311.332,971, against $123,599.538 in 1895. Gold 

 imports were $47.777.0 ( J7 in excess of the exports in 

 1896, against $70.571.010 exports in excess' of im- 

 ports in 1895. The merchandise balance for the 

 year was in excess of that for any previous year in 

 the history of the country, and the merchandise 

 exports were the largest for any calendar year on 

 record. 



The foreign exchange market opened strong at 

 $4.881 to $4.89 for sixty-day and $4.90 to $4.901 

 for sight, and the fluctuations during January were 

 within a narrow range with a downward tendency. 

 the rates closing at $4.88 to $4.881 for long and 

 $4.891 to $4.90 for short. Gold was imported 

 and exported almost simultaneously, the metal 

 being brought out in response to a premium of 1 

 to H per cent, paid by those who intended to sub- 

 scribe for the $100.000.000 Government bonds, and 

 it was shipped as an exchange operation, the 

 amount going forward from New York being 

 $8.600.000, and the first consignment of imported 

 gold was $1.030.000. The market opened in Feb- 

 ruary at $4.88 to $4.881 for sixty-day and $4.891 to 

 $4.90 for sight, and the tone was weak to the close, 

 when the rates were $4.87 to $4.87 for long and 



