The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-09-23


NEW YORK. Sept. 2-The acute weak
ness of Amalgamated Copper as a re-
suit of the omission at the directors
meeting yesterday to- declare the usual
extra quarterly dividend of % per cent
with the regular ~ per cent, was an I'M
settling influence on the whole market
today The reticence of all having OFF,
cial connection with the company about
offering any explanation of the action
or any assurances as to the condition of
the company's business added to the in
fuence of the break. The policy of the
insiders in the stock seemed to be to let
the sellers make the opening price, which
was from 10S to 101 on Simultaneous sales
of $500 shares. Some degree of support
was accorded after this, although the
price touched par during the second hour,
an extreme decline of IL per cent from
yesterdays close, and 8 points from the
high level of the year on June II. The
stock closed at 1909, a net loss of 6A.
Selling for London account also was a de-
pressing factor, where news of another
setback in South Africa discouraged re-
cent hopes of an early termination of the
war Brisk bidding up of the local trac-
ton stocks was the only notable irlf1u-
ence toward an advance. Prices were gem
orally below last nights level when the
bank statement appeared. The loan re-
duction, in spite of the weeks activity by
speculative pools in the stock market,
relieved some apprehension and allowed
the surplus reserve to derive additional
advantage from the gains of cash on
the subtreasury operations The strength
of the local fractions and lively demand
for Louisville & Nashville and Union Pa
cific steadfed the market, but the closing
was irregular and with the days net
changes mixed.
REVIEW OF THE WEEK.
The price movement of stocks this
week has constituted a remarkable DEM
onstration of confidence in the stability
OF the financial fabric and the assurance
of continued, prosperity On Monday,
which was the first day of trading in
stocks after the death of the president
by assassination, prices recovered prac-
dcally all of the losses of the week be-
tore, the market opening with an up
ward rush of prices and closing strong
at the top level. This movement was not
less significant as a demonstration of con-
hdence because it was to some extent ar
uhc1al and due to manipulation Artf-
nc1al support IS powerless to check gem
eral selling by real holders of securities.
VINO act always on their own conviction
that the value Of their shares has become
impaired The action of the market on
Monday morning showed conclusiveIy that
there was no general liquidation to be
faced. Real holders were confident in the
value of securities. The tirnid class of
holders had evidently done their selling
during the previous week at the threat
OF the calamity which fell upon the mar
ket during Friday night. The profession
al pears, instead Of seeing prices din. so
as to afford a profit the short sales.
saw a sudden rebound, which forced
them to buy back at arloss, emphasizing
the recovery by their bidding for stocks.
Evidently the action of the market was
a surprise to the whole speculative world.
Commission houses had orders to buy
at the market. which disappointed the
hopes of bargain hunters that the OPEN
ing drop in prices would afford price
1eVel tnat would make profitable invest
mentS. These orders were executed at
prices from 3 to 6 points higher than the
previous Fridays closing This condition
of affairs, added to the enormous sup
porting orders for account of great cap
italists, resulted in the over-stimu1ation
OF the market Many brokerage houses
also had additional orders to buy at fixed
prices below the market, which would
nave proved an obstacle to any fail
Ihese technical causes must not be lost
slsnt OF IN justly estimating the manner
OF the recovery, although they do not i'm
pair the significance Of the fact I'm
doubtedly the opportune relief to the
money market by the treasury measures,
was dominant factor In steadying the
markets and relieving. the anxiety, which
had become acuteaz as.
A striking contrast is afforded bv the
easing conditions Of the money market
this week and the dailyEconferences last
week OF the clearing hbuse authorities.
and the devising of measures to meet
what had reached the propor
tons of crisis. The gain in cash from
the subtreasury had been augmented to
many millions threughist the redemption
OF government bonds, the diversion of in
ternal revenue collections into bank de-
posts, the anticipation of October gov
eminent interest payments and the nor
mai increase in pension payments Incl
dent to the midmenthly period. Last
weeks loan contraction, resulting from
the liquidation in the stock market also
sensfbly relieved the position of the
banks. The Importance of early i'm
ports OF gold has somewhat diminished
IN view OF this relief from domestic
sources, but the almost hourly expec-
tation of gold engagements has played
Its part in sustaining the stock market
The fact that exchange rates have not
actually crossed the profitable gold I'M
port point, although one small engage
ment was made is accounted for by the
less urgent pressure for money in New
York A movement of gold to New
York is confidently anticipated. but ex-
change authorities differ widely in their
opinions of the probable volume of the
movement. The amount of this coun-
try's unliqufdated credit balance abroad
has grown debatable, owing to our large
borrowings by American syndicates from
foreign capitalists. The recent large re-
ceipts of Australian gold which have
found their way ultimately to New York
bank reserves, cut off a customary
source of supply for London, and In fact
represents liquidation of London obIiga-
tons to New York, thus Iessening flu
ture claims. The Austro- Hungarian
bank continued to buy gold in European
markets for currency purposes The lat
taken at Paris is 5000, o00 GOO, and German
capitalists are floating lesser loan for
Russian railroads. The present abund-
ance. of resources of the. great European
banks is therefore not to be counted upon
as freed from future FARCE obligations.
1t is therefore not impossible that money
market considerations may occur when
the effect of the treasury measures of
relief begins to be.4ost Bgain
Railroad bonds hive recovered in SYM
pathy with stocks Put In much less de-
gree. -,
United States refunding Is advanced y
and the new As 1 per cent over the clos
ing of last week.