The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-10-14
STOCKS ARE LOWER
REGISTERED IN FRI
DAYS BULGE ARE PRACTICAL
LY ALL WIPED OUT
HEAVY REALIZING MOVEMENT
support From Brokers Representing
the Biggest interest in the
Street Fails to Check
the DECLINE.

Street Fails to Check
the Decline.
ye Closing.
Bar silver, New York. % tut Ias rriu rs;
Cali money, New York. 31% s-S%
NEW YORK. sOct.y 1.-THE cause OF
the relapse of prices in today's stock
market was not altogether clear but the
same was true of the sudden advance of
yesterday and the day before. Distrus.
o. that movement and increduIity as ia
the rumors that Were set at,oat TO ac-
count for it, because of some intrinsic
grounds OF improbability seemed to be
the reason for today's reaction The
same brokers commonly surpassed TO act
for the Standard, Morgan, Hartman and
Could interests We're active in buying and
bidding up stocks TODAY as they were
yesterday st. Paul especially being lifted
again and again by main force in the
neighborhood of 167 but the last price
was 1915, only shade above the lowest.
The course of that stock formed an
epltome of the whole market The CEN
tfal and southern transcontinental stocks
We're nearest to it in point of activity,
tut the advance showed a tendency TO
spread beyond yesterdays narrower
limits until the enormous realizing forced
prices back. Prices generally show loss
es on the day running from l to IA
in the leaders, and from that I'D to "a
in st. Paul and the local traction stocks.
which were notably weak throughout.
The decreased loan item of the banks
failed to show the full effect of the re-
payment during the week of some Sl5, OGU,
600 of New York city revenue warrants
and the supposition was therefore made
that foreign bankers continue their bor-
rowing in the local market to repay for
eign borrowings. The disturbance in the
Paris money market points to the likeli-
hood of continuance of this process.
The market closed weak at the lowest
REVIEW OF THE WEEK.
There has been some upward action IN
the stock market during the week, fol-
lowing the prolonging. period of depres-
sion. The pressure. of liquidation was dis
tinctly relaxed during the early days OF
the week, but there was manifest hesita-
ton about taking up the movement for
the advance and even the uncovered
bears were not apparently in great haste
to cover their short contracts For sew
eIal days the market Wavered before q
pronounced advance drove the bears to
cover. The opposing arguments of the
lief on the one hand that the depression
in the stock market has been due to other
cause than the depletion of money sup
plies by autumn requirements and on the
other the belief that the last great cycle
of prosperity has reached Its crest with
a. prospect of gradual decline and shrink
age of business and earnings to be faced.
The first named element is confident
that the seasons interior requirements
for money are about satisfied or that the
banks are in possession of sufficient re-
sources at present to meet the demands
without forcing further liquidation on the
stock market. 1t is argued that surplus
reserves of the banks are now ST, 4S3, Us
compared with $4,463,925 at this time last
year, and 81, III $50 in 1899 The move
ment of currency to the interior last
year on this date amounted to $15,S52, 600,
and terminated in-the last week OF
October. In 1889 the, movement continued
into the third week in November, but the
amount moved at this date was only
$11 5S5, 600. Last year however,, there was
a free movement OF gold from London
during October. This year there is nc
present prospect of such a 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 4 re-
su,ting pressure on the exchange market
that may bring gold Nothing in the re-
cent past has SO clearly demonstrated
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
nients of hundreds of millions of dollars
by capitalists and syndicates in the fur-
therance of community of interest prof.
ects among the railroads and the forna-
of INIT
ton was well known to the public, and
there were Observation-Disclosures on the
unruffied composure of the money market
in the face of the demands put upon 1t.
In the summer events Indicate that not
only our own money market. but those OF
pretty much the whole world besides
were drawn upon TO provide the credits
for the gigantic undertakings of Ameri-
can syndicates These foreign borrow
ings have apparently involved the sale of
bankers exchange bills of distant ma
turtles, which were left uncovered. rely
ing upon autumn outward movement of
merchandise to replenish the supply of
exchange and enable them to cover. The
belated movement-of cotton. the decreas-
ed corn export and the falling off in man
ufactured products, especially iron and
copper, have kept down the supply of
exchange and have made this repayment
of foreign loans especially effective IN
sustaining the exchange market and
keeping it away from the gold import
point Moreover, the repayment OF these
foreign loans has been followed to a
large extent by reborrowing in this mar
ket so that the loan account of the New
York banks has been maintainea, in spite
of the extensive liquidation in the stock
holders. These are symptoms of extern
s1ve lookup of capital not to be ignored.
ard they bring forward the problem of
how far the years great financial projects
will warrant the sanguine expectations
OF them during the speculative excite
ment of last year. The panic IN May
caused by the Northern Pacific corner
and the assassination of President Nc
Kinley upset the calculations of their pro-
moters and their original prosperous eff
forts to distribute the crop OF secuflt1es
which were issued to reimburse the syn
dicates for their outlay, and In their
elaborate plans for the recuperatlon OF
the market to enable them to renew the
process of distribution With the add
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. especially
among the minor industrials, which have
notably affected the public confidence in
securities The future of the market 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 De
reckoned with one, of the most inpor-
tant is the ultimate effect upon our IN
dustries of the stagnation and depres-
sion in foreign industries. notably in Ger
no