The San Francisco call., 1901-10-13
EASTERN MARKETS.
Ne7v York Stock Market.

NEW YORK Oct 12-The cause of the
lapse of prices in to-day's stock market was
not altogether clear but the same was true
of the sudden advance of yesterday and the
day before. Distrust of that movement and in
credulity to the rumors which were set
afoat to account for it because of some intrin-
sic grounds of improbability seemed to be the
reason for to-day's reaction. The same bro
kers commonly supposed to act for the same
large Standard, Morgan. Hartman and Gould
interests, were active in buying and bidding up
stocks to-day, as they were yesterday. st.
Paul was especially lifted again and again
by main force to 167, but the last price
1915, only shade above the lowest, the course
of that stock forming an epitome Of the whole
market. The Central and Southern transcon-
tinental stocks were nearest to it in point of
activity, but the advance showed a tendency
spread beyond yesterdays narrower limits
til the enormous realizing forcing prices back
Prices generally show losses on the day run
ming from to ia in the leaders and from that
up to 3A 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 repayment dur
ing the week of some $15,0000 900 of New York
was therefore, made that foreign bankers CON
tinue their borrowing in the local market to
repay foreign borrowings. The disturbance in
hood of a continuance OF this process The mar
ket closed weak at the lowest.
There has been some upward action in the
stock market during the week following the
rather prolonged period of depression The
presence of liquidation was distinctly relaxed
during the early days of the week, but there
was manifest hesitation about taking up the
movement for an advance and even the un-
haste to cover their short contracts For sew
eral days the market wavered before pro-
opposing arguments of the speculative element
now represent the belief on the one hand that
no other cause than the depletion of money
supplies by the autumn requirements. and on
the other hand the apprehension that the last
great cycle of prosperity has reached its crest
with prospect OF gradual decline and shrink
age of business and earnings to be faced. The
nrst named element are confident that the sea-
sons interior requirements for money
about satisfied or that the banks are in pos
session of sufficient resources at present to
meet the demands without forcing further IL
quotation in the stock market. 1t is urgued
that surplus reserves OF the banks are
ST. 4S3 175 compared with s4 46S 925 at this time
last year, and SLIT, 350 in 1899 The move
ment of currency to the interior last year after
ated In the last week of October In 1899 the
movement continued into the third week in
date was only $11 So. COO. Last year. however
there was free movement of gold from Lon
ent prospect Of such movement. The cotton
crop has been very slow in moving and this
may involve considerable further demand for
currency from the South. with the possibility
of a resulting pressure upon the exchange
ket that may bring gold Nothing in the re-
cent markets has so clearly demonstrated the
extent to which capital embarked in the
enterprises of the boom period of this year
the recent course of the foreign exchange mar
ket. The employment of hundreds of millions
of dollars by capitalists and syndicates in the
furtherance of community of interest projects
among the railroads and in the formation of the
United States Steel Corporation we'll known
to the public and there were self-congratula-
tions upon the unrufhed composure of our
money market under the unprecedented de-
mands put upon it, The summers events in
dicate that not only own money market
but those of pretty much the whole world be-
sides were drawn upon to provide the credits
for the gigantic undertakings of American syn
dicates. These foreign borrowings have ap-
parently involved the sale OF bankers exchange
bills of distant maturities, which were left un-
covered, relying upon the autumn outward
movement Of merchandise to replenish the sup
belated movement of cotton. the decreased corn
export and the falling off in manufactured pro-
ducts especially iron and copper, have kept
down the supply of exchange and have made
tive 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 large extent by rebor-
of the New York banks has been maintained In
spite of the extensive liquidation in the stock
market. These are symptoms of the extensive
taking up of capital not to be ignored and
they bring forward the problem of how far the
years great financial projects will warrant the
sanguine expectations of them during the spec
ulatfye excitement of last year. The panic in
MAY caused by the Northern Pacific corner and
the assassination of President Mckinley upset
the calculations of these promoters and their
original prosperous efforts to distribute the
crop Of securities which were issued to reiu-
burse the syndicates for their outlay and In
their elaborate plans for the recuperation OF
the market TO enable them to renew the process
of distribution. With the additional outlay
ing the market the coming of the autumn re-
quirement for money forced some retrench-