-2*2 



FINANCIAL REVIEW OF 1898. 



sion lest an attack might be made upon some of the 

 Northern cities, but the stock market was only tem- 

 porarily disturbed, ami the tone was strong at the 

 close of the month. The chief favorable influences 

 operating u|>on stocks early in June were easy money, 

 continued improvement in trade conditions, and Eu- 

 n>|K?an purchases of leading properties. The specula- 

 t i>n gradually grew broader and the tone more confi- 

 dent.and one important feature was the demand for 

 railroad mortgages, notwithstanding the impending 

 authorization of an issue of $200,000,000 Govern- 

 ment bonds. Naval operations were chiefly con- 

 centrated u|K)ii Santiago de Cuba, with a view to 

 the capture of Admiral Cervera's fleet, while the 

 army, under Gen. Shafter, began a siege against 

 that stronghold, and there appeared to be the ut- 

 1110-1 confidence felt by speculators in stocks that 

 tlic-e operations of the 'navy and of the army would 

 iceexsful. The news of the sinking of the 

 Met-rimac " >n June 3 by Naval-Constructor Hob- 

 son at the mouth of the harbor of Santiago deCuba 

 had a decidedly stimulating effect upon the market. 

 The collapse of the Chicago wheat deal on June 13 

 had a disturbing influence upon stocks, for it was 

 feared that il might result in heavy failures and in 

 a derangement of the money market. The realizing 

 sales in stocks were large and the tone was heavy 

 for a few days, but this was succeeded by a more 

 confident feeling, caused by news that the Chicago 

 trouble was likely to be wholly local, and, influenced 

 bv the foreign-trade statement for May and by the 

 offering of the Government loan of $200,000,000 3- 

 per-cent. bonds, the market gradually advanced, 

 and it closed strong with good buying cl leading 

 properties stimulated by news of a general move- 

 ment of our forces upon Santiago de Cuba. The 

 announcement of the destruction of Admiral Cer- 

 vera's fleet as it was endeavoring to escape from 

 Santiago de Cuba caused a sharp advance in stocks 

 at the beginning of July, and there was a further 

 improvement following news of the surrender of 

 the Spanish army in Santiago to Gen. Shafter. 

 The speculation was less active after the middle of 

 the month, though the tone was generally strong, 

 and it was not greatly affected by the prospects for 

 dearer rates for money resulting from the payments 

 for the 3-per-cent. Government bonds. The open- 

 ing on the 26th by Spain of negotiations for peace 

 had no specially stimulating influence upon the 

 market, and it was comparatively quiet for the re- 

 mainder of the month. The signing of the peace 

 protocol and the suspension of hostilities had a 

 marked effect upon the speculation in August, and 

 the tendency was upward on large transactions led 

 by the Grangers. The withdrawal of our troops 

 from Santiago de Cuba, the occupation by Gen. 

 Miles of Puerto Rico.and the capture of Manila en- 

 couraged buying of stocks by the arbitrage houses; 

 and though money was more active in consequence 

 <>f the absorption of the proceeds of the 3-per-cent. 

 bonds by the Treasury, this fact had little depressing 

 effect, mainly for the reason that imports of gold 

 from Europe had been resumed and also that the 

 Treasury Department was seeking to relieve the 

 money market by depositing funds in specially des- 

 ignated depodtory banks. The stock market was 

 heavy during the greater part of September, influ- 

 cnced by active money, but chiefly by realizing 

 sales in the Grangers and by vigorous bearish dem- 

 onstrations upon the industrial stocks, principally 

 Sugar and Tobacco. As bank reserves decreased in 

 consequence of the drain into the Treasury of money 

 paid for bonds, and to the interior for 'the move- 

 m * nt of crops, loans upon stock collateral were 

 called, resulting in liquidation of speculative ac- 

 counts, and the violent declines in industrial prop- 

 erties led to such discrimination against these 



stocks by lenders of money as made borrowing upon 

 them difficult. One notable exception to the gen- 

 eral declining tendency was Baltimore and Ohio, 

 which advanced on news that the president of the 

 Great Northern had acquired a large interest in 

 this property. The market improved in October, 

 influenced by easier money, encouraging trade re- 

 ports, and good crop prospects, but the movement 

 was comparatively slow, the most active stocks 

 being Sugar and Tobacco. Toward the end of the 

 month there was a disposition on the part of specu- 

 lators to await the result of the November election, 

 and some apprehension was felt lest the sound- 

 money and the Administration majority in the 

 House would be materially reduced. This expectant 

 attitude continued during the first week in Novem- 

 ber. The news of an increased sound-money ma- 

 jority in the Senate, as the result of the election of 

 legislatures favorable to such policy, and the assur- 

 ances of the retention of an Administration majorit y 

 in the House of Representatives, caused the market 

 to rise sharply after the election, and it was quite 

 strong, with large transactions in leading stocks and 

 bonds, to the close of the month. The anthracite 

 coal properties were early in November depressed 

 by speculative selling, based upon the unfavorable 

 conditions of the coal trade, but later there was a 

 recovery on rumors of the adjustment of the differ- 

 ences between the various interests. The market 

 was active and higher in December, gradually 

 broadening, and during the second week transac- 

 tions were unprecedentedly large, reaching 4,311,- 

 433 shares of stock and $39,244,400 railroad mort- 

 gages. Though the advance was accompanied by 

 realizing sales, the offerings were promptly absorbed 

 and the tendency was almost uninterruptedly up- 

 ward. Among the favorites was Federal Steel, 

 which was directly influenced by the improved con- 

 dition of the iron trade and by the largely increased 

 demand for manufactured products of iron and 

 steel. A very decided impetus was imparted to the 

 speculation by the signing of the peace treaty and 

 also by the foreign-trade statistics for eleven months 

 of the current calendar year. The market was 

 strong to buoyant after the middle of the month, so 

 continuing to the close. 



Total sales of stocks at the New York Stock Ex- 

 change for 1898 were 112.699,957 shares, against ??.- 

 324.172 in 1897; 54,490.643 in 1896; 66,5^3.3^2 in 

 1895 ; 49,075,032 in 1894 ; 80,977,839 in 1893 : s:>.- 

 875,092 in 1892 ; 69,031.689 in 1891 ; 71,282.885 in 

 1890; and 72,014,600 in 1889. 



The following shows the highest prices of a few 

 of the speculative stocks in 1897, and the highest 

 and lowest in 1898 : 



The following table shows prices of leading stocks 

 at the beginning of the. years 1897, 1898, and 1899: 



