Arizona republican., 1900-07-04
FINANCIAL MARKETS
A Partial Reaction Occurred in
 Stocks Yesterday
A Decline in the Afternoon After a Period of Early strength-Wheat Was the Main Influence in the Relaxation.

New York, July 3.-The market, after holding steady during the greater part of the day, developed a reactiOnary tendency. and the last half hour wit messed a general decline in prices. There was nothing however, particularly sig nificant about this movement. The changes which have occurred during the last few days have reflected merely the shifting speculative conditions which result when professional opera tors are rapidly changing from one side of the dealings to the other. Cessation of the real selling at the close of last week found prices unduly depressed by execution of contracts for the de- cline. Buying to cover these contracts forced a recovery yesterday and again this morning. but as soon as the de mand from this quarter slackened, prices fell off again. Nominally this mornings rise both here and in London followed the receipt of more definite although very contradictory reports from the Pekin relief force. Consols went up fractionally and the other se- curity departments in London were firmer. Our market was also helped at the opening by the commencement of light rains in the northwestern crop districts which was emphasized by a further decline in wheat. But the rain fall was apparently not liberal enough to cause any decided improvement and the wheat market later in the day ral- lied sharply. This was the signal for fresh selling in the railroad stocks, under which the whole list receded. Some unfavWable comment in specula- tive circles was aroused by the full statement of the St. Paul for May. showing in face of an increase of S9S 700 in gross earnings a decrease of nearly $35S. 900 in net. This, however, is no different from the record of the com pany in previous months, so far as the relation of net to gross earning is con cerned. In April. for instance. out of q gross increase of $347, 900 net increased only s7,OOO, and in March gross earn ings increased $294,OOO, while net de- creased S21. 800. Last months results are probably therefore only another re- action of the well known policy of the well known policy of the St. Paul man agenent in making heavy charges 10 operating expenses both for regular and extraordinary improvements. The
 
 was of very small dimensions, and it ceased before the close. Such stock as was supplied came entirely from pro fessional sources and was probably largely for the short account. The only conspicuous losses at the close were in the shares of the northwestern wheat roads.
 Sterling showed no further weak
 I rate of 4.S6A represented d decline of nearly one cent in the pound during the last ten days. The movement is important, not so much for the immedi- ate situation. as for it's bearing on the question which is being asked with some uncertainty in Wall street just now. What will happen in the local money market later on in the summer? Our exchange market has evidently been influenced pretty directly this week by the passing of the acute ten sion in the Berlin money market Dis counts at that center have moved down F per cent since last Wednesday, bringing a prompt recovery in German exchange upon London. and freeing London as well as New York from the pressure of the gold demand. The speculative liquidation throughout Ger many it may be noted, had already been pretty well accomplished before this week. as the heavy shrinkage in loans of the Reichsbank during the early part of June suggested. Today s statement of the bank shows further decrease in the loan account. although it has improved its position by an ad- dition of g.. 900, 900 to cash holdings. The indications that Berlin and probably Paris also will not require any more gold yet awhile, have induced New York banks which hold foreign eX- change bills in their loans, to liquidate their collateral as it natures, and 1t is the selling from this source which has been mainly influential in depressing the sterling rate during the last four days. It is by no means likely, how evr that this process of recalling credit from abroad will go on to such an eX- tent as to immediately force down eN- change to the gold import level Critics who are making this suggestion do not take into full account the improbabaii- ity for another six weeks at any rate. of a cOincident decline in money abroai and d rise here. But the prompt re sponse of the American exchanges to the relaxation in the Berlin market thls week foreshadows clearly what Will happen if the demand for money be- comes more active here later on. A year ago the financial requirements of the domestic agricultural regions were practically supplied by capital With drawn forcibIy from the local specula- tion. This year with the New York sur plus reserve again very low, yet with the speculative account heavily con tracteJ. it is altogether probable that the harvest needs will be met by draw ing on our large credit balance abroad.
 WASHINGTON IN PARIS.