The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-07-28

NEW YORK, July H.-Not much COM
ment is required upon today'ls stock mar
ket, The same conditions of apathy and
lEertness that have been gaining for the
week prevailed. Trading was of unirn-
pcrtant dimensions, and the price move
TnentS were without significance. The
public was clearly unrepreSented in the
market and the meager trading repre-
sented only the efforts of professional
operators of the smaller class to induce
some movement of prices that would offer
them a days profit, whether on the up
grade or on the down grade. The deal
ings in the United States Steel stocks,
and, to less extent, in the grangerS and
PactflcS, oVerShadowed the rest of the
market. The steel market was strong on
the same kind of operations as those of
yesterday, seemingly based on q belief
In an early triumph of the corporation in
the strike contest. The common stock
rose an extreme IL, and the preferred 2B.
The corn-carrying railroads were bene-
nted by the weakness OF the corn market
an reports of the breaking of the West
ern drought. A number OF minor stocks
moved apparently from individual causes.
The American Locomotive stocks and
International Power were sharply de-
pressed. The Canadian Pacific subsidiary
roads responded to the recent strength
ain that stock. The Tobacco stocks, PeO-
pies Gas, Amalgamated Copper, Amer
lean Cotton Oil, the Virginia-CaroIina
Chemical stocks and a few others Were
notably strong. Traders sold the market
on the increase in loans reported by
the bank statement, but they induced no
following and covered their shorts before
the close, which was steady at the recov-
cry.
REVIEW OF THE WEEK.
The week just passed has given pretty
clear evidence of the elimination, for
the time at least, of the speculation for
the decline in stocks and for the rise
in grains which has been going on in the
various markets during The whole of July
m I'll cot
fluctuations and irregular movements of
prices with narrowing fluctuations and
decreasing volume of business. According
to the inVariabe rule in speculative move
ments Of any dimensions, this one has
oVerdone itself. The consequence has
been reaction from the recently prevail
ing tendency. Stocks have recovered and
grains have relapSed. Monday morning.
prices We're the lowest Of the week but
dld not reach, except in a few cases, the
level of the preceding Monday. The week
opened much as that preceding had done.
Continued hot weather and drought over.
the Sunday brought an accumulation of
selling orders into the market which sent
prices down with a rush, and there did
not seem TO be the vigorous support
which was afforded the previous week
when the declaration of the steel STRIKE
mad demoralized the United States Steel
STOCKS. EeVerything looked promising for
the bears. But it began to be obvious
before long that the industry of that fac
ton had involved them so far that they
hesitated to commit themselves further.
ana that they We're disposed to CqJse up
their contracts.
The same conditions were manifest in
the grain markets, where the unloading
OF the longs produced a collapse in corn
out OF all proportion to the meager re-
lief reported for the crops in the drought
stricken districts. AS a consequence Of
the reactionary tendency Of the markets,
the week has been given to sort of
taxing STOCK or present prices as they
apply to actual future promise. More
conservative views have prevailed as to
the relatively lower prices warranted by
the damage to the corn and wheat crops
1t is pointed out that the heavy decline
IN the spring wheat yield of last year
was found not to warrant the severe de-
clines in the prices of Northwestern rail-
ROAD stocks. Earnings of those rail-
roads were found to be well sustained
by the very large general merchandise
traffic and distribution to stockhoIders
was not diminished. Export estimates
of the yield of corn on the basis of the
damage done, reveal that a large traffic
yet remains for the railroads from the
crop. The important compensation of a
successful wheat crop is urged. The rel
atively smaller portion borne by the
grain traffic on the Western railroads to
the total tonnage is taken into consider
alton. The large SURPRISES carried by
the railroad companies as a residue from
tne several prosperous years are cited to
show their ability to face a year Of
scantier earnings. But when all is said
the fact is still recognized that the I'M
precedently prosperous conditions of
the last few years are already altered
with the final outcome of the steel strike
to be reckoned with. Even with the Sc
we're losses already recorded from the
high level of the year, in the prices of
railroad stocks, the fact Is kept in mind
that the high level was beyond all war
rant IN actual conditions, and represent
ed large degree of speculative initiation.
Questioning arose which found no place
In the excited period Of bull speculation
as to just how stocks are to benefit in
value, even supposing all that has been
related Of community of interests and
passing of control to centralized railroad
systems be true. The process in almost
every instance was approximately the
same, and involved the purchase Of con-
troll at high prices and the issuance Of
bonds ahead of the stock of the pur-
chasing railroad These bond issues are
OF volume that require high earnings
OF the most prosperous years by the pur-
chased roads to pay the charges upon
them and to keep the system out Of
bankruptcy. In one case for instance
the public and the investor are left in
the dark as to the details of what col
lateral secures an issue of 500, 900, 900 of
bonds, involving yearly charges of 81
100000 ahead of the stock of the rail-
road. Another reason is the enormous
amount of capital and credits tied up in
the purchase by Syndicates of various
control. The release Of these credits nat
urally depends upon the marketing sof
the securities, whether bonds or stocks,
issued to the public to recoup the syn
dfcates for their outlay in the purchas-
ing process. It goes without saying that
the recent conditions in the securities
market have not been propituous to this
marketing, and no small part Of the re-
cent heavy liquidation is principally due
to the measures of protection for capital
lists with large commitments thus neces-
stated The beginning this week in a
small way, Of the. transfer of the cur
rency to the interior to move the crops
calls attention to the fact that recent
liquidation in the stock market had as
its object preparation to meet this re-
record speculation in stocks. The
question also arises whether this year
viii see the normal response to this inte-
rior movement Of currency in an inflow
bered that since the South African war
cut off the supply Of gold from Europe,
the United States has seen no import
ant inflow of gold when our food stuffs
spite of a merchandise export balance
in our favor unprecedented in our his
tory. Foreign money markets look for
a demand for gold from New York in the
autumn, but as to their ability to meet
1t, authorities are not agreed. The spec
ulative outlook for the present level of
prices is thus seen to be much mixed.
Business in railroad bonds has been on
a small scale, except in a few issues
that are related in value to stock by con-
vertible rights. United States refunding
Is have advanced Il per cent on call for
the week.
The Financier says: The statement OF
the New York associated banks last
week was again favorable, showing ar
increase of $2,099,200 in surplus reserve
carrying this item to S23 1928, 575, or the
when the surplus was $24, $50, S25. The
banks may therefore be regarded as in
an exceedingly strong position for this
season of the year, and they are pre-
mands for money from their correspond
ents in the agricult1ral sectinns nf 49,