The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-10-08
MONEY RATE WILL CO Up
FOR INTHE NEXT FEW
DAYS
MARKET HOLDING IT'S OWN
Political Situation Proves "a Factor
in Speculation - Strike Settle
mcnt Has Been Expected
for Some Days.

CHICAGO, Oct. 7-E w Harden wires
from New York the following review of
the stock market to the Tribune:
Conditions governing the stock market
have shown little change during the week
ending yesterday. While there have been
fluctuations in prices, they have been
largely the result of professional trading
and not due to any important news de-
velOpments. Those conditions which
were present at the beginning of the week
are, if anything, emphasized al the pres
ent time. The danger of higher interest
rates is more nearly a present one than
it has been, and the showing in todays
bank statement, in the opinion of many,
toreshadows general marking up OF
rates.
The foreign exchange situation has not
changed materially except in the way of
emphasizing the weakness Of the market,
and conditions abroad continue practical
ly as they have been for some time. There
has been no increase in the discount rate
of the Bank of England, Notwithstanding
this was anticipated when the week OPEN
ed, but such an increase is still among
the probabilities of the near future
ELECTION AFFECTS THE MARKET.
The most important question affecting
Ing the week there was an advance to
B per cent in the rate for demand money.
1t is true that good part of the weeks
loans were made at figures shading this
rate, but in effect the ruling rate is now
at the higher figure. It would not be sur
prising if the coming stock market week
Shold see interest rates go to figures
above those now ruling.
All indications point to dearer money
The demand from the interior has not
ceased and it is likely to continue for
some time to come. The stock market
has been dull, and with any awakening
of Interest in speculative securities there
seems likely to be an increaS demand
for money, which cannot we'll fail to
bring advancing rates in its wake.
The constant dwindling away of the re-
serves in New York banks. together with
the heavy cash losses which are being
shown, is perhaps the most important
factor bearing on market conditions
During the week ending yesterday the
surplus reserve showed a loss of Sc, 100 600.
The banks now hold only Sc, PAL 800 in ex-
cess of the requirements under the law.
Another bank statement as unfaVorable
as that of yesterday will entirely wipe
put the surplus reserve of the banks
AS it is now, the reserves of a number
Of the banks are below the legal require
ment, and it is, OF course out OF the cues
ton for them to increase outstanding
loans. During the week loans showed a
decrease of 1861, O00 The market has been
fairly active this week but the amount
Of stocks held by the commission houses
On margin as security for loans has not
materially incTeased. With any awaken.
ing Of interest in stocks on the part OF
The public there would come a larger de-
mands for call money and that would of
Itself. IN all probability, cause advancing
rates.
DEARER MONEY DEEMED CERTAIN
There has been a good deal of surprise
at the long-continued period of COMPARE
lively cheap money which New York has
enjoyed. = Every week IT has been ex-
pecteds that rates would advance, but while
rates are Slightly higher. than those
which ruled during the summer the in-
crease has not been such as to affect
the market materially. With an increase
in rates undoubtedly the market would
feel the effect of dearer money.
traders in Wall street are counting on
a settlement of the coal strike in the
near future. There is good reason to
believe that the concessions made bv the
operators. will cause many OF the strill
ing miners to return to work during next
week. Unless there should be soma
change IN conditions it may be taken as
practically assured that many of the
mines which have been closed down will
be IN operation in short time This
OF ltself SHOULD tend to restore confidence
In the security market
The fact that there has been little at
tenton paid TO it in the past, and that
prices have not gone-off materially as a
: result OF the strike, makes any recovery
that may come of less Importance than
would have been the case had the mar
het responded to the unfavorable side
OF the strike situation. The stocks OF
Inc coaf-caffying roads are now only a
little below The prices at which they sold
when the strike first began
Golu imports are looked uron as being
probability of the near future. Con-
tinued low rates for foreign exchange
with heavy offerings of cotton bills. com
bined with the loss in reserve and in the
species holdings of the New York banks
made il probable that credit balances
abroad will be drawn upon. New YORK
does not care for gold, and. in fact
would rather have small bills. The
banks desire, however, to build ND tha
reserve beyond what was shown in to-
days bank statement, and the easiest
way to do this, under existing conditions.
Is through importing gold
interest rates abroad have been bett ar
. than on this side and the banks haze
found it profitable, therefore. to n1intain
Dig credit balances in European money
centers With decreasing reserves and
with tendency toward higher interest
rates the importation Of gold is looked
upon as being q practical certainty.
GOLD IMPORTS NOW AT HAND
1t would not be surprising if gold inn
portations commenced during the connin,
week ----e
A fair degree of activity has character
tzed the course of the stock market dur-
Jug the week. Total transactions were
gust under l,S00.o00 shares. only a few
thousand shares less than the trading of
lie previous week, While sales Of honds
were greater by s1,00O,O00 than last week
Changes have been almost entirely in the
way Of advances. The list as a whole
closed materially stronger than last
Saturday, gains of from one to three
or four points being recorded in many
Of the active stocks.
The industrials have Jared particu-
larly well during the week. the steel
stocks all closing above the figures OF
last Saturday Good buying orders he We
fn In all of the stocks, though Wall
rect has had it that good deal of the
buylng has been for pool account Trad.
ing in some Of the steel stocks is be-
Heyed TO have been almost entirely for
the account of insiders, who are seekIne
10 get the public interested III the mar
Iet
The railroad issues were stronger. in
part due to the excellent reports of earn
11lgs received during the week, showing
that net earnings are continuing heavy
ana making favorable comparison with
the figures OF year ago.
STOCKS ACTIVE AT LONDON.