The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-01-06
Transactions Of Great Volume We're Coupled
With Fluctuations of Wide Range
in Many Shares
Interest Centered 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 q
flood of offerings to convert paper profits
INTO cash or to save losses on the part
or narrow margined holders whose ac-
counts would be closed out with the
wiping out of margins. Various causes
contributed to make effective the bear
attack on the market this week and to
Iolte r the reacTlon which resulted, as ex-
Pected, in shaking out a liberal supply
of long stock Probably the most potent
influence was the suspicion that powerful
and aggressive leaders, whose leadership
has been followed with blind conf
dence by the purely gambling element,
had
QUIETLY SOLD OUT
and taken their profits under cover Of
the variegated rumors which have been
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-
the intending investors had probably
been 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 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
hood 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 hold out the foreign situation Bul
they disclaim the suppositiOn that this
will work hardship TO the New York
money market, as the domestic supply Is
suHlcient TO spare considerable sffeunt
for export
- FEARS OF A RELAPSE.
The apprehension had been seas7aI
in more conservative quarters in Wall
street that owing to the long continuance
of violent relapse in prices when 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 ul-
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 whesr
the holdings of the lightweight specuia-
tors are shaken out, making it difficult
short, to get back their stocks and mA1.
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 resfltency of the market is conclu-
sive evidence of the very large redHc-
ton in the floating supply of stocks
which has resulted from the recent sus-
tained 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
pan1es for control or to secure influence
in directorates and managements are mo-
brought upon the market again, even by
the present high level of prices, which
for many railroad stocks is above al;
previous records.
Railroad bonds have not escaped the
reactionary tendency of stocks and have
not shown as vigorous a tendency e.
recover as stocks
United States new foqrs declined ! PEI
cent; threes coupon. 112. do registered
2; refunding twos, Us, and old fours and
hves "a below the ruling bid a week
ago.
BANKING RESERVES
The TYnaneier says: The New York
clearing house banks made a gain of al
most $1,000,000 IN their cash holdings last
week, due to heavy interior receipts and
Subtreasury disbursements, but 30 heavy
was the rise in deposit loan Liabilities,
Gggregaf1ng as they did sic. go 800. tha,
the cash holdings count for only lit
tie over $2,624 600 in surplus reserve, in
creasing that fund to $l4,I50075, 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 .yi9end ray
ments and the shifting of funds incident
thereto. The advance in loans might be
attributed logically to the heavy dealings
which have characterized operations
these Go not show fully in the average,
and it is quite likely that a considerab
portion of belated transactions has been
carried over from the previous siX-d "
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
interior and the result is seen in the
not only to accommodate every demand
upon them, but to add considerably to
their surplus cash holdings This means.
on the surface, continued ease in ra eS So
far as domestic influences are conGe ned,
and the adverse features of the foreign
situation revealed last week in the Bank
OF EHSldHu ; l1Se III 0lScOGHl rates. are
not counted Important enough here to
lead to a demand for American gold.
The year Just closed has been re-
markabe one in the development
American banking power and the current
only demonstrates to what extent NsW
York is superceding London as a iinan-
ciaI money center. The banks here have
had an unusually Improbable year. They
have added SO, 900 to the surplus, haV-
ing paid full dividends; they have in
creased their capital $l5,O9OOOJ and in
every item an almost proportionate gain
is recorded. This, while it does not cen
Germ the present statement, serve Sto 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 iastitu
tions 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
Tious items There seems to be no que
tion that the totals of 1901 Will break all