St. Paul daily globe., 1891-05-10
FINANCIAL.
New York.

New YORK, May 9.-The stock market was
active for the short session to day, and the
weakness which has been the feature of the
week eliminated in sharp decline i'll the
last half hour, when the lowest prices OF the
week were reached in all the leading shares
The prime moving force in the market is
now the unexpectedly large shipments of
gold, while the weakness in the rates for for
eign exchange is regarded as indicating an
early end of the shipments. The heavy
drain on the resources of the ba nks has
begun to be felt in the rates for
money, and operators find themselves
unable to carry the stocks with which they
are loaded in many cases. Some of these
shipments however, which are scarcely justi-
fed by the rates which have prevailed for the
last two months, are said to have been
brought about by the same parties who sue
ceeded III locking up money last fall in order
to lower the market, and for the same pur-
pose. There is no other explanation of the
ulusual outgo Of gold at the low rates of eX-
change prevailing. The market started off
to-day with some pressure to sell. apparently
the remains of Yesterdays movement, but
there were indications of inside buying in
Missouri Pacific and of buying of other
ing for a reaction when the market
was per cent higher than at present
This influence made itself felt and a general
rally OF small proportions was brought about.
The bank statement, however, which was ex-
pected to be bad, showed loss to the surplus
reserve of nearly S2,700,000, and. as il was
known to reflect only portion of day
OutgO Of gold, the inference was that the
actual condition of the banks is not so favor
able as indicated by the statement. The sell
ing movement was resumed with increased
vigor therefore, and even the strongest stocks
yielded readily, and almost all the first stocks
lost over ! per cent from the best prices of
the early dealings. There was an effort TO
cover on the decline, however. and the
buying in the last few, minutes actually
steadied the market and brought prices in
some instances up small fractions The close
was steady at the rally, but at close to the
lowest figures. The final changes are gen
orally losses of large fractions and Union
Pacific is down He and Reading and Louis
vile each 1 per cent The trading reached
159,S14 listed and 1898 unlisted, st. Paul
contributing %, 720. Railroad bonds were not
so active as stocks, but sympathiZed fully in
the weakness displayed and on business of
only S407, 600 several material losses were sus-
tanned Government bonds have heen dull and
steady. State bonds have been dull and steady.
Petroleum was neglected, trading being in
significant and movement extremely narrow
The opening was steady and on a small scale
decline of IA occurred. The market then
became dull and remained so until the close
Pennsylvania oil. spot closing, 15S; June
option opening, 72H: highest, 72A; lowest,
Y; closing, ~; total sales, 5000 bbls The
Post says: The heavy gold exports were the
controlling factor, and the general expecta-
ton was that the S7201.000 sent out this
week would be reflected by decrease for
from S30C0000 to Si,000,000 i'll the surplus
reserve OF the banks in their state
ment to-day. The la st loan of money
on call yesterday, however was
at per cent and the highest rate had been
early i'll the day, and as far as these rate
were any index there was no positive tight
ening of the money market since last week.
The average rate of 4 per cent in the last two
weeks is considerably higher than the aver
age of the first half of May in 1888 and 1889,
though not so high as in 1887 and 1890. New
ertheless, as it was, the expec tadon Of very
easy money, together with the prospects Of
good crops that started the rise in stocks,
the present prospect of decreasing bank re-
serves as the result of gold exports
is the one thing that has caused
the downward reaction in stoc ks.
There has been no tightness of the
money market yet, and the probabilities are
that there will be none this summer, and as
Tor next autumn there is every prospect that
we shall have heavy imports of gold to pay
for the wheat which Europe has bought.
Even now commercial demand bills against
July exports of wheat are being offered for
delivery in July at $4.S5. which is below the
gold importing price. But for the time being
the gold exports neutraliZe not only the crop
prospects but all the good results OF the har-
monious meeting of the advisory board of
the Western Traffic association, and the i'm
portant progress made towards economy in
the business of the Western roads. The
whole decline from the highest since the be-
ginning of the year is from to Z points.