The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-10-13
STOCKS ARE / LOWER
ADVANCES REG4sFt2RED,. IN -FRI-t
DAYS BULGE ARE PRACTICAL-
LY ALL WIPED OUT
HEAVY REALIZING MOVEMENT
support From Brokers Representing
----- he biggest IA'teresr-fn the
4ysa Street Fails to Check - /,
the Decline.
.eClnsinn

NEW YORK, Oct. 12-The cause Of
the relapse of prices in todays stock
market was. not altogether clear but the
same was true of the sudden advance of
Yesterday and the day before. Distrust
o. that movement and incredulity as to
the rumors that were set afioaf to acI
count for it.. because of some intrinsic
grounds Of Sinprobability seemed to be
the reason for today's reaction. The
same brokers commonly supposed to act
Tor the Standard, Morgan Hartman and
Could interests We're active in buying and
oiddlng up stocks today as they were
yesterday st. Paul especially being lifted
again and again by main force in the
+ nelghborhood- of 49, shut the last price
was 1915. only a shade above the lowest.
The course Of that stock formed an
epitofne ofsthe whole market. The CEN
traf andssautinern trapscontinental stocks
were nearest to it III point of activity
hat9 the adsaFiee showed<a tendency to
spread beyond yesterday So narrower
limits until tie ENORMOUS realizing forced
prices back. Prices generallX show loss
es on the day Stunning fromI to IL
in the leaders; and freraa fhata1p to 3&4
in St. Paul and the local traction stocks
which were Notably weaiksEthreug
The decreased loan item of the banks
failed to show the full effect of the re-
payment during the week of some SIS 0O0,-
600 of New York city revenue warrants
and the supposition was therefore made
that foreign bankers 5continue their bor-
rowing in the local market to repay for
eign borrowings. The disturbance in the
Paris money market points to the l1keli-
hood of continuance of this process
The market closed weak at the lowest z
RENIEWssoFg THE WEEK
There has been some upward action IN
the stock market during the week, fol-
lowing the, prolonging. periedzsaf. aeprese
sion. The pressure ofsiiquidation was DIS
tinctly relaxed during the early days OF
the week, but there was manifest hesita-
stion about ia King upfthe INCREMENT for
the advance and even the uncovered
bears were nor appa rentlys ia great haste
to cover their Short Contracts For sew
eral days the market wav cred Before a.
pronounced advance Grove the shears to-
cover. The opposing arguments of the
tspeeulattve element now represent the be-
lief on the one handIt hat the depression
: IN the stock market has beef duet other
cause than the deplekfon Of money sup
plies BY autumn requirements and on the
other the belief that the las. great cycle
of prosperity has reached: tfsscrest with
a prospect eff gradualsdecline2a and shrink
age of business and earnings to be faced
~ The sta,named elemenEs@is confident
that the seasons inferior requirements
for money are about. Satisfied or That the
banks are in possession of IS ufHcient re-
sources at present to- meet@the demands
without forcing furtb er Iiduidatien on the
stock market At is argued That surplus
reserves of the banks aresenows SIT ,4S9, IT'S
compared with S4, 463 S25 at@this- time last
year. and s117TsS5o in 1885, The move
ment of currency to the interior last
year on this date amounted to $15, S52,0 coo,
and terminated in lass1ast week OF
October In 1899 the movement continued
into the third week III November, but the
amount moved at this date was only
81, 5S5, COO. Last year, however, there was
free movement of gold from London
during October. This year there is no
present prospect of such movement.
The cotton crop has been very slow in
moving and this may involve ccnsid-
cradle further demand for currency from
the South, with the possibility Of n re-
suitii4g pressure on the exchange market
that may bring gold. Nothing in the re-
cent past has so clearly saenlonatrated
the extent to which capital was embarked
in the enterprises of the boom period
CT this year as the recent course OF the
foreign exchange market The. employ
ments Of hundreds of millions of dollars
by capitalists and syndicates in the fur
therance of corhnatlirity ofninterast prof.
ects among the railroads and the forma-
ton of the United States Sfeel'eeorpora-
fion was well knosnsst6 sthe public and
there were self-cpng ratui atoms on the
uDruff1ed composer of the money market
in the face of the demands put upon IT,
In the sum naeraevents Indicate ssthat not
only our own money market, but those OF
pretty much g the whole world besides
were drawn upon. TO provide the credits
for Ethe gigantic under akings of AnefaS
can. syndicates.a These foreign borrow
irgs have apparently inyolved.fhe saleso
bankers exchange bills of distant ma
turtles, which were left uncovered, rely
ing upon autumn utEvaref haosement soL
merchandise to Gepler1fsh the supply of
exchange and enable them to cover The
belated movementvof cotton, sthe decreas-
ed corn export and Ahe falling off in man.
ufactured proas1ctss especiallHs iron Sand
copper, have Kept dawn the supply OF
exchange and nave ma De this fepayment
OF foreign loans especially effective In
sustaining the exchange market and
keeping it away from the gold import
point Moreover. the repayment or these
foreign loans has been followed to
large extent by reborrowing in this mar
ket. SO that the loan account or the New
York banks has been maintained, IN spite
of the extensive liquidation in the Stock
holders These are symptoms OF extern
s1ve lookup Of capital not to be ignored.
and they bring forward the problem OF
how far the years great financial projects
will warrant the 'sanguine1 expectations
of them during the speculative ekclte-
ment of last year. The panic In May
caused by the Northern Pacific corner
and the assassination of President MIG
Kinley upset the calculations OF their pro-
moters and their original prosperous Ell
forts to distribute the screp OF secuaties
which were issued to reimburse the syn
dicates for their outlay, and IN their
elaborate plans for the recuperation OF
the market to enable them to renew the
process, of distribution With the addi-
tional outlay made necessary by meas
ures for supporting the market, the COM
ing of the autumn requirement for money
forced some retrenchment, which exposed
some weak spots, in the market, especlaiiy
among the minor industria1s which nave
notably affected the public, commence In
securities. The future of the marker IS
by no means clear although the usual
! upward reactions which are normal TO
| any decline in STOCKS, are bound TO oc-
| cur. Among the, doubtful factors to be
| reckoned with, one of the most lGpor-
| tant is the ultimate effect upon our IN
| dustries of the stagnation ana depres-
| sion in foreign industries, notably In Ger
many and Russia The actual shortage
! In thescorn crop Is yet to be shown. Rail-
! road earnings are still In excess of last
! year, both for gross and net, but the ra-
| tic of increase is still declining. Expert
/ views on the outlook in the iron INDUSTRY
are not all sanguine. Present activity OF
| production is held to be due to making
up orders delayed by the steel strike,
and some eagerness is shown to secure
contracts running Into next year. a. SEES
cir1rr INF "a