314 



\. I \\. REVIEW (>F 1897. 



The tone was buoyant in Septemlwr until the third 

 week, ami the buying was general, embracing the 



. : - k*. I!,."- ::: luslrml*, the gal ; : rti< 8, 



iid mortgages of all kinds. Th< mark. -i showed 

 indi. i largely overbought after I ho 



middle uf tin- in. .nth. there was some erMenoe that 

 Urge k had IHNMI marketed during 



the rise in prices, and nonprofeeskmal speculatori 

 had apparently iinu i- -1 their* 



lo prote.-t tin-in fr>m loss. 

 nail-. i |o raiii 



: . n moat r.ipi. ii> ad- 



1. including r..n-.li,|,.t, :.u. Man- 



haitan. tln Granger*. Mi -un Pacific. Chicago Gas, 



and t 1 i ii- market was more or less 



unsettled f<*r thf remainder of ill" month to the 

 uf \vas irregular iti Octoler. 

 with more or lew liquidation of speculative accounts 

 and f runout rniil- by the bears, accompanied b\ 

 diquictin_ i-ting 



in:r\ and Spain regarding 



ami the tenden ..-rally downward. Marly 



in November bearish demonstrations were frequent 

 nn*l vigorous, mid "ti the ."ith advantage was taken 

 of a niunlH-r of disquieting rumors to force impor- 



. olving outside speculators in i 

 losses and discouraging rebuying. But toward the 



flhe month tli- ridications that pro- 



fessional oj>erators were accu in u luting a general 

 assort men' ' , .-r <>f manipulation 



i-olidated (i as. and the undertone WHS fairly 



tron_ ading railroad properties, 



j was quite co;iiident. based upon a-^ur- 

 ancepthat there would IK* not hing of a dist urliing 

 character in the President's message, and that a 

 conservative murse would IK* pursued by Con 

 regarding ( 'nl-a. The negotiation of the Etook 1-land 

 refunding h'iids. and generally increasing railroad 

 earnings had A marked influence upon the specula- 

 tion at the end of November, and there was an ex- 

 ceptionally good demand for railroad mortL 

 indicating lar^e investment Imying. The con- 

 live language of the President Concerning our rela- 

 tions with Spain and the efforts of the Adminis- 

 tration to induce Congress to pass some measure 

 for the reformation of the currency had a -liinulat- 



T.-.-t upon the speculation in December, and 

 the tone was generally strong with good Imying of 

 ittan Klevated. '.Metropolitan Street Railway. 

 Third Avenue, and the local gas stocks as Hie 

 feature. Th- activity in money after the middle 

 of the month had only a temporary influence upon 

 the market, simph tending to restrict hu-i ness, and 

 the tone was steady to firm at the close, 



1 sales of stocks at the New York Stock 

 change for 1897 were 77,834,178 iharef a^ain- 

 490.<M8in 186: 66, > i,, 



1804; 80.977^89 in 189:', 



MMn 1891: 71,282^8.". in IVHI : and 7^H4,000 



The following table show* prir-es of leading 

 stocks at the U-ginning of the years 1896. 

 and 1806: 



01 r. 



Mich i 



l*od 

 Northi 



CVntral New Jen*? 



I SIM,. 



97 

 144 



I 







-; 

 MB 



H 

 15 



1.-.7 



ion 



ISMS. 



106 

 Hf 



I'M 



'I 



M 



96 



The following shows tho highest prices of a few 

 of the speculative stocks in 1886, and the highest 

 and lowest in 1897: 



Am 



Co. 



..'IIMI.-X . 

 ami Nashville . . 



1 ...... ' 



< aha 



I'ae.lie 



Boot 



S.>u(h..| 



Tennessee Coal and I K >n 

 Western Union 



is-..;. 



is;.;. 



II, !.r,t. I I 



BM 



HIJ 



10 



N 



aoi 

 m 



Hi 



I \chan-c. The i-xport- ,,f merchan- 



.ir ending l.-e. ill. IMtT. \\m 

 906,313 above those f,.r 1^!<;. and the imp. ' 

 domestic and foreign merchan.li-e I l.T'.M 



more. Tlr F merchandise exports over im- 



ports for the >.-ur uas x:;:,7.1 1'J/JO}. again-1 > 

 257,685 for I^.M;. 'I'h.- excess of , 

 ports of merchandise, coin, and bullion for l^'.i? 

 was*: nsl |81 1,560,817 in 1896, (.-Id 



exports were |2."i(i.."'J! in ilie import- in 



1897, against $4G,474,:M) imports h 

 ports i u 1- 

 Tln- foreign exchange market was firm until the 



la^t week in January, nominal rates I.eini: ^ i 

 $4.84| for sixty-day and 4X7 to $4.H7$ for -nrht 

 at the opening of the year, and advancin. 

 to |4.8(> for the former and to *-}.- 

 the latter. The < -au-e for the firm 1<.n< wa< the 

 continued purchase of long sterling, which I 

 in November la-l year, to hi. Id until it ran t.. 

 and as often as bills bought sixty day- previously 

 became sight drafts they were sold, and the pro- 

 were reinvested in 'long sterling, thus extend- 

 ing the operation for another period of sixty, and in 



' ases of ninety days. Such movements 

 profitable only while discounts were hitrh in London 

 and while money was lending rate here, 



and then-fore when, on the 21st. the Hank !' 

 land reduced the minimum rate of discount from 

 4 to '.\\ per cent., and the open market rate in Lon- 

 don fell fp .'; per cent., the profits of these 



exchange operations were materially lessened, the 

 tone of the market grew easier, and at theci 

 the month there were liberal offerings of sight bills. 

 After opening easy in February, tin- tone I.. 

 firmer by reason of renewed purchases ol 



ling, in the expectation that before thcexpi! 

 of ixty days there would be an urgent demand to 

 remit for goods imported in anticipation of tl 

 tariff. After the middle of the month the political 

 tension in F.uropc growing out of the troiil 



-d an advance in the open market di*- 

 count rate in London, and the exchaiiL.'- market 

 continued firm to the end of the month, when nom- 

 inal ' sl. s <' for sixty-da\ 

 $4.87$ to $4.88 for sight. The n firm 

 daring March. .' $4.86 to $4.864 for long 

 and $4.88 to $4.88j for short and one : 

 buying of the former for investment to employ 

 money which could not otheru^. u u-.-d 

 munerative rates. The firm tone continued until 

 near the end of April. On the 24th there was a 

 shipment of ${>77J>00 in gold bars to Lurope. in 

 violation of an agreement between bank* r- not to 



1 unless a higher rate than $4>s'i could 

 )< obtained for sight drafts. The bills a-ain-t this 

 shipment were sold at $4.88|. The compact be! 



