The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-10-07
STOCKS DEPRESSED
BUT PRICES STILL
FALL
WATCHING THE UNDERSTANDS
Support Hitherto Extended the Mar
ket Has Been COnspicuousIy
Lacking During the
Past Week.

ket Has Been COnspicuousIy
Lacking During the
Fast Weski =
om3r 3s4
&9sv u
E3@9hl Closing
neir.iss Sat. Fri .
Bar silver. New York 80. 1878 577I
Can money New YORK y;; =; ~. ) 81
NEW YORK, Oct. 5.1TIfe holiday in
London today accumulated S,the dizziness
here and tended to relax the selling pres
sure, as London has been a constant
seller in this market of late. The fact
that there is no loan market at the stock
exchange on Saturday also tended to re-
lax the pressure upon the market. Per-
ceptlon is growing of the fact that the
question of the interior demand for mon
ey OH the stock market has passed the
stage of argument and has resolved it
SELF into question of how much fur
Their the, stock market liquidation may
have to extend. While there has been
no strtngency of money during the week
this has been due to the fact that in re-
oucIng their outstanding loans brokers
nave been discriminating against indus
trial collateral rather than marking up
the ruling rates for call loans. Owing to
the continued fir1nneSs of sterling ex-
change, is spite Of larger supply of
cotton bills this week, relief by gold
imports does not appear imminent. De-
mand continues from bankers short of
exchange, and exports in that market de-
clare that large short interest remains
to be covered during November 1t is
said that some fresh sterling loans have
been negotiated this week. The; loan in
crease in the bank statement revealed
that other forces are still at work in
the credit market which Offset the stock
market liquidation. This and the renew
ed pressure against Amalgamated Cop
per depressed the whole market, .. ii
REVIEW OF THE WEEK.
There has been some irregularity of
the stock market from time to time dur
ing the week, and dealings have been
on a small scale. The course of prices
In the main has been downward, and
the weakness increased during the lat
ter part of the week. The support of the
market at the weak spots, which was
feature during the crisis following the
assassination of President Mckinley, and
which was attributed to the Joint effects
OF the great banking, andaHnaneial pow
erS of the country, has BEEN SaSpiciouSly
lacking. The. liquidation has not been
heavy, nor apparently urgent, but very
light demand was Forthcoming at the
eral agreement Of sentiment I'M the street
that a reactonary movements was due,
and need not be contested. This is an
acquiescence in the normal course of
prices of securities at this time of the
year, when the largest demands are an
nually made upon the money markets
Tor fall trade, the moving of crops and
the period of waiting for the situation to
shape itself concerning the outlook for
the coming year. -@ A59U t
The artificial support which was con-
Sldered necessary when the shock of the
presidents assassination had to be met,
in order to prevent decentralization and
panic, is no longer considered necessary.
The opportunity having been given for
Cue consideration and due preparation to
meet the ultimate effects of that event,
4 % haoY3 Oh n fhn 1oofI1 roll
play of forces. So far as the general
outlook is concerned, confidence has been
maintained. Trade returns are encour-
aging in practically all branches. Bank
clearingS the country through. continue
at record figure. Railroad earnings
are still at q, higher level than last year.
though the ratio OF increase is running
somewhat less than for earlier weeks and
months for some time past. A feature
of many of the railroad reports coming
to hand, both for transcontinental and
trunk lines, is the fact that increase in
net earnings are achieved on a some
what lessened volume of actual tonnage
moved. This is practical demonstra-
tiCn of the healthy effect of the MAIN
tenance of freight rates, and reflects the
progress made in the community of inter-
est as a factor in SuppreSSlng the rate
cutting, which has made such serious in
roads upon railroad earnings in times
past. On the other hand, the reduction
in the freight movement is not entirely
ton is due to the higher grade of much
of the freight which is moved, and which
is natural consequence of the prosper
Gus condition of the country The east
ern movement of agricultural products
shows a falling off, partly owing to the
shortage of corn crop and holding back
of cotton. But the westward movement
of merchandise, whose classification is
under higher freight rates, has contin-
ued at an unprecedented volume. While
this condition has served to sustain rail-
road earnings, it is obviously not a self
perpetuating condition. as it is in effect
one to the enjoyment ofSpaSt prosper
ity. In the steel trade the reports are
excellent conditions following the set
Element of the labor dispute, with large
new demand in filling belated orders with
a large residue of steel requirements
thrown upon next years production by
the mills. The statement Of the month.
ly net earnings published by the United
States Steel corporation on the occasion
of the declaration OF the regular quarter
ly dividends upon its stocks is consid-
sidcred corroborative of the healthy con-
d-tion of the steel industry, which is re-
garded as an index of the business con-
drawal Of artificial support of the stock
market, however. revealed some disturb
Ing conditions as to the status of many
stocks which had been mesL subject to
manipulation. None of the minor rail-
road stocks which had been Subjected
to operations by specull" We -poels suffer
ed wife relapses, but the most striking
effects were shown in the long list of
industrials. Attempts to market small
amounts of some of these stocks resulted
in a collapse of their prices into frag-
ments. Several factors combined to
awaken the, latent distrust with which
these securities are habitually regarded
and which is reflected in the low prices
which they sell compared with the rate
of dividend return. The nominal cause
wa3 the declared constitutionality of an
antitrust law of New York state, which
emphasized growing dread of attack
by federal legislation. The collapse of
the stock of Amalgamated Copper earlier
in the month has caused increasing atten-
ton to the lack of public information re-
garding the conditions of other indus
trial corporations. The action of the Unit
ed States Steel corporation in publishing
a statement of monthly net earnings
opened up the necessity of other corpora
tionS following suit. Yearly reports Of
some Of the minor companies recently
have shown a decline in net earnings
and failure to maintain dividends. The
question of over.capitalization and abil-
ity to continue dividends in any but the
most prosperous times have received re-
newed attention, and parallels are drawn
with the experiences of railroad corpora
tons under the earlier financial methods
of the country, and the bankruptcies and
organizations in reaching sound con-
d1t1ons or organizations Money market
conditions have continued favorable. but
the termination of the interior demand
for currency is awaited to insure future
conditions.
Railroad bonds have been dull and ir-
regular. rs
United States 3s declined q, the SIS x
1s advanced rs. over closing of last week.