The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-01-06
Transactions of Great Volume Were Coupled
With Fluctuations of Wide Range
in Many Shares
Interest Conferred in Great Northern, Northern
Pacific and Chicago, Milwaukee
and ST. Paul

q reaction, knowing well that the mere
fact of the reaction would bring out a
nooc of offerings to convert paper profits
INTO cash or to save losses on the part
OF narrow margined holders whose ac-
counts would be closed out with the
W1plng out of margins. Various causes
contributed to make effectiYe the bear
attack on the market this week and to
force the reaction which resulted as ex-
Fected, in shaking out a liberal supply
OF long stock Probably the most potent
and aggressive leaders, whose leadership
has been followed with a blind conf
dence by the purely gambling element,
had
QUIETLY SOLD OUT
and taken their profits under cover Of
flying hither and thilner of effective
new plans for increasing the value OF
various stock. The small buying de-
mand resulting from the disbursement
of January dividends and interest was an
early disappointment. This was ac-
counted for at first by the delay in the
return to the channels of the money
market. of these disbursed funds But
the failure of this investment buying to
develop punctually in the first week OF
January caused inconvenience to those
spectators who had calculated on tax
ing their profits by meeting this de-
mand and suggested the conclusion that
the intending investors had probably
Deen competing in the early buying by
the spectators themselves at the lower
level of prices. With the reactionary
tendency once established. the money
lenders were less liberal in their terms
This was not reflected in the money
rate, but took the form of discrimination
against certain stocks which were re-
jected as collateral for loans. This in
creased the pressure to sell those stocks
The advance in the Bank of England's
rate of discount had a sentimental in
huence which was exaggerated in the
sudden mood of depression which seize.
on Wall Street on any considera BILE re-
action IN the stock market. internal
bankers are willing to admit the likel-
mood of further demands being made on
the domestic money market to meet the
requirements aboard and the possibility
that gold may be sent from New YORK
to to foid out the foreign situation Bul
they disciafm the supposition that this
viii work hardship TO the New YorE
money market, as the domestic supply is,
suticient TO spare considerable shfeunt
for export.
FEARS OF A RELAPSE.
The apprehension had been senz7ar
in more conservative quarters in Wall
street that owing to the long continuance
OF the rise in prices Wore was danger
of a violent relapse in prices wien the
turning point in the market did arrive.
The vigorous support which came into
the market at the low level after Thurs
days sharp break, however made an
impressive demonstration of the still I'M
satisfied demand for stocks, which seems
to he waiting for any concession in prices
to come into the market. There is also.
a striking scarcity of offerings, whefr
the holdings of the lightweight specula-
tors are shaken out, making it difficult
for bear operators, who sell the market
short to get back their stocks and niS&.-
ing them open to attack by the still ag-
gressive bull market. The constant d.
geStion of profits which had been going
on all through the rise, is thus seen 10
have conserved the health of the market
The resiliency of the market is conclu-
sive evidence of the very large reduc-
tl4n IN the hoatng supply of stocks
which has resulted from the recent sus-
tanned buying. The large amounts of
stocks which have gone into the vaults
of bankers and great financial institution
for investment and into the treasures Of
competing or connecting railroad COM
panies for control or to secure influence
IN directorates and managements are no
brought upon the market again, even BY
the present high level of prices which
for many railroad stocks is above all
previous records.
Railroad bonds have not escaped the
reactionary tendency of stocks and have
not shown as vigorous a tendency to
recover as stocks
United States new tours declined PEI
cent; threes coupon, ~. do registered
2; refunding twos, 15s, and old tours anC
fives "a below the ruling bid a week
ago.
BANKING RESERVES.
The Tinancier says: The New York
clearing house banks made gain of al
week, due to heavy interior receipts and
subtreasury disbursements, but 20 heavy
was the rise in deposit loan Liabilities,
Gggregating as they did $1,000 500, tina
the cash holdings count d for ONLY a lit
tie over $685. GOO in surplus reserve, in
creasing that fund to $l4,l50,075, which
however, is the highest mark touched in
fourteen weeks. 1t had been expected
that the banks would show some heavy
changes and the expansion in deposits
can be traced largely to d Via md raw
no CHI of Hc.
thereto The advance in loans might be
attributed logically to the heavy dealings
which nave characterized operations
on the exchange during the week, but
these &C not show fully in the average =
and it is quite likely that considerab
portion of belated transactions has been
carried over from the previous siX-d y
period The important feature of thu
statement is the plain indication Of the
turn that has taken place in the matter
of current transactions.
GAINS FROM INTERIOR
The banks are now gaining from the
ability of the clearing house institutions
not only to accommodate every demand
upon them, but to add considerably to
their surplus cash holdings. This Inea is
on the surface, continued ease in rates Sc
far as domestic influences are cone ned,
and the adverse features of the fOreigr
situation revealed last week in the Bank
of Englands rise In discount rates. are
not counted important enough here to
lead to a demand for American gold.
The year just closed has been a re-
markable one in the development o
American banking power and the current
only demonstrates to what extent NV
York is superceding London as a finan-
cial money center. The banks here have
had an unusually Improbable year. They
have added $10,000000 to the surplus hav-
ing paid full dividends; they have in
creased their capital $1509O.OOJ and in
every item an almost proportionate gain
is recorded. This, while it does not con-
Germ the present statement, serve to show
the constant expansion that is taking
place and emphasizes the fact that no
matter what demands may be made upon
them the local clearing house institu-
tons are prepared. 1t is quite likely Tor
a time, at least, that the weekly state
ments will show unusually large lluctua-
tions and it is also probable before the
close of spring that international factors
quiescent of late will again become prom
inent in influencing the trend of the va
rious items. There seems to be no que
ton that the totals of 1901 will break all
records.