FINANCIAL REVIEW OF 1899. 



2T9 



by an increase in the dividend on Atchison pre- 

 ferred, by easy money, and by good crop reports, 

 and, though gold exports continued, they seemed 

 to have little effect upon the stock speculation. 

 Toward the middle of the month, though the 

 share market was irregular with wide fluctua- 

 tions, there was notably good buying of railroad 

 mortgages at advancing prices. The irregular 

 movement in stocks continued for the greater 

 part of the remainder of the month, though there 

 was a substantial advance in high-grade railroad 

 shares. The industrial stocks were, however, 

 generally lower, indicating an oversupply. The 

 development of political tension between Great 

 Britain and the Transvaal Government caused 

 higher discounts in London, and there was some 

 selling of securities for European account. In 

 the closing days of the month the approval by 

 the directors of the New York Central and of 

 the Boston and Albany Railroads of the terms 

 of a lease by the former of the latter had a favor- 

 able influence, and the improvement was aided 

 by encouraging crop prospects, but the gain was 

 in only a comparatively few specialties. One 

 notable feature of the situation was the greatly 

 augmented railroad earnings, due not only to in- 

 creased traffic but to better rates. 



The market opened in July with a good de- 

 mand for railway stocks, and one feature was a 

 well-sustained advance in Pennsylvania, while 

 Louisville and Nashville sold at the highest price 

 in seven years. The general market was strong 

 for a few days, after which it irregularly yielded 

 to realizing sales. Later material changes in the 

 condition of the banks, as disclosed by the weekly 

 statement, caused some apprehensions of activity 

 in money, and this fear was taken advantage of 

 by the bears to attack the market; but the first- 

 class railroad properties were well sustained, and 

 especially New York Central, Pennsylvania, Chi- 

 cago and Northwestern, and Northern Pacific. 

 Toward the middle of the month labor troubles 

 on the Brooklyn Rapid Transit lines, encouraged, 

 as was alleged, for speculative purposes, made 

 these stocks temporarily weak, and after their 

 recovery the market became quite dull. There 

 was, how r ever, a good demand for railroad bonds, 

 and Western railway shares were favorably af- 

 fected by large traffic returns. One notable fea- 

 ture in the third week was a rise of 25 points in 

 New York Air Brake stock, on news of a favor- 

 able decision in its suit with the Westinghouse, 

 but this was followed by a decline of 40 points. 

 In the closing week of the month the market 

 was dull, though generally strong, with the Trunk- 

 line stocks, the Grangers, and shares of all prop- 

 erties directly or indirectly connected with the 

 manufacture of iron and steel leading. General 

 business activity, favorable crop prospects, large 

 railroad earnings, and rumors of contemplated 

 new railway combinations contributed to the im- 

 provement. The market was active and gener- 

 ally strong in August, influenced by the condi- 

 tions above noted, and also by the assurance 

 that the corn crop would be the largest on record. 

 European purchases of stocks through the arbi- 

 trage houses were large; labor troubles at the 

 West and the local gas war appeared to have no 

 disturbing effect, and dividend announcements in 

 Chesapeake and Ohio, Southern Pacific, and 

 Union Pacific preferred stimulated buying of 

 these properties. Among the notable movements 

 were a rise in all the iron and coal stocks, and 

 especially in Tennessee Coal and Iron. Interna- 

 tional Paper stock fell 12f points, and Brooklyn 

 Rapid Transit declined on the publication of the 

 annual report, but later there was a recovery. 



Toward the end of the month the development 

 of an acute situation in the Transvaal caused 

 some selling of stocks for European account; but 

 the offerings were promptly absorbed, and the 

 market closed strong, though the higher rates 

 for money served somewhat to check speculative 

 operations, particularly in the industrial proper- 

 ties. Early in September the reduction in bank 

 reserves foreshadowed activity in money; the 

 Transvaal situation seemed to be more threaten- 

 ing; there was some apprehension of trouble in 

 France growing out of the Dreyfus trial, which 

 disturbance, it was thought, might be unfavor- 

 ably reflected in our exchange market, and the 

 outlook was unfavorable. Still, notwithstanding 

 these conditions, the market was strong, and 

 there was a quite general advance in all proper- 

 ties, even the industrial shares. In the second 

 week, however, a further reduction in bank re- 

 serves, accompanied by the calling of loans, re- 

 sulted in more active rates for money at the 

 Stock Exchange, and the tendency of the market 

 was downward, with more or less sharp declines 

 in the industrial stocks. The death of Cornelius 

 Vanderbilt on the 12th, it may be noted, had no 

 influence upon the market. One feature, how- 

 ever, was a fall of over 17 points in Brooklyn 

 Rapid Transit, and there were wide fluctuations 

 in Tennessee Coal and Iron, Colorado Fuel and 

 Iron, the Tobacco, and the iron and steel stocks. 

 The tendency was downward in the early part 

 of the third week, influenced by further losses 

 in bank reserves, calling of loans, and still dearer 

 rates for money on the Stock Exchange. There 

 seemed, however, to be supporting orders in many 

 of the specialties at the decline, and quite notice- 

 able buying of Delaware, Lackawanna and West- 

 ern and Brooklyn Rapid Transit. Though money 

 continued stringent in the last week of the month, 

 the stock market was not unfavorably influenced 

 thereby, partly for the reason that the engage- 

 ment of $2,350,000 gold in London for shipment 

 hither was announced, and it was felt that the 

 monetary situation might otherwise soon be re- 

 lieved. The market was dull and irregular, how- 

 ever, and the most active stocks were Delaware, 

 Lackawanna and Western, Tennessee Coal and 

 Iron, American Sugar Refining, American To- 

 bacco, Consolidated Gas, and Federal Steel. In 

 the first week of October the disturbing influ- 

 ences were the double advance in the rate of dis- 

 count by the Bank of England, a rise in the rate 

 by the Imperial Bank of Germany, higher foreign 

 exchange, and dear rates for money in our mar- 

 ket. There was liberal selling of stocks for Eu- 

 ropean account early in the week, and also large 

 offerings by the commission houses and consid- 

 erable bearish pressure, which at intervals had 

 an unsettling effect, but good properties seemed 

 to be well sustained, and the market closed at a 

 substantial recovery, under the lead of the an- 

 thracite coal shares. The outbreak of war in 

 the Transvaal in the second week of the month 

 appeared to have no special influence upon our 

 market, probably for the reason that the London 

 security markets were not greatly affected. The 

 local money rate was easier, and there was a 

 better feeling, due to the offer of the Treasury 

 to anticipate payment of the interest on the pub- 

 lic debt. The stock market was irregular and 

 lower after the middle of the week, with the 

 traction stocks heavy and the iron and steel prop- 

 erties well supported. One feature was a rise 

 in Pullman, on a rumor that control of the 

 Wagner Palace Car Company had been obtained. 

 There was a good demand for first-class railroad 

 mortgages, which continued in the following week, 



