The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-10-06
STOCKS DEPRESSED
MARKET DULL IN THE EXTREME,
BUT PRICES STILL
FALL
WATCHING THE INDUsTRIALs
Support Hitherto Extended the Mar
ket Has Been COnspicuOusly
Lacking During the
~ - Past Week. - s~ IN


Lacking During the
a1ss Past Week
= So 49, ~
@sr atk Closing
Bar silver. New York .....57M 57M
Call money, New York. 5 81
NEW YORK. Oct 5-The holiday in
London today accentuated the duliness
here and tended to relax the selling pres
sure, as London has been a constant
seller in this market of late. The fact
! that there is no loan market at the. stock
exchange on Saturday also tended to re-
lax the pressure upon the market Per-
ception is growing of the fact that the
question of the interior demand for mon
ely Ola the stock market has passed the
stage of argument and has resolved it
sell into question of now much fur
Their the stock market liquidation may
have to &extend. While there has been
no stringency of money during the week
this has been due to the fact that in re-
dpelng their outstanding loans brokers
have been discriminating against indus
trial collateral rather than marking up
the ruling rates for call loans. Owing to
the continued firmness of sterling ex-
change, is spite of larger supply of
cotton bills this week, relief by gold
imports does not appear imminent. De-
mand continues from bankers short of
exchange, and exports in that market de-
clare that large short interest remains
to be covered during November. It Is
said that some fresh sterling loans have
been negotiated this week. The loan in
crease in the bank statement revealed
that other forces are still at work In
the credit market which offset the stock
ed pressure against AInalgamated Cop
per depressed the whole market.
REVIEW OF THE WEEK.
E
the stock market from time to time dur
ing the week, and dealings have been
on a small scale. The course of prices
in the main has been downward, and
ter part of the week The support of the
market at the weak spotS,' which was
a feature during the crisis following the
assassination of President Mckinley, and
which was attributed to the joint effects
of the great banking and financial pow
ers of the country, has been suspiciouSly
lacking. The liquidation has not been
heavy, nor apparently urgent, but very
light demand was forthcoming at the
declines, and there seemed to be a gen
er1 agreement Of sentiment in the street
that a reactienary movement was due,
and needsFnotrb e contested. This is an
aequieScence in the normal course of
prices of Securities at this time of the
year, when the largest demands are an
nually made upon the money markets
for fail trade, the moving of crops and
shape itself concerning the outlook for
the coming year. aHi ~ T9~ffs
The artificial support which was con-
Sidered necessary when the shock of the
presidents assassination had to be met
in order to prevent decentralization and
panic, is no longer considered neceSSa ry
The opportunity having BEEN given for
due consideration and due preparation to
meet the ultimate effects Of that event,
the market has been left to the natural
play of forces. So far as the general
outlook is concerned, confidence has been
maintained. Trade returns are ehcour-
aging in practically all branches. Bank
clearings the country through continue
at a record figure. Railroad, q earnings
are still at a higher level than last year.
though the ratio of increase is running
somewhat less than for earlier weeks and
months for some time past. A feature
of many of the railroad reports coming
to hand, both for tlanscontinental and
trunk lines, is the fact that increase In
net earnings are achieved on a some
what lessened volume of actual tonnage
moved This is a practical demonstra-
F., ticn of the healthy effect of the main
tenance of freight rates, and reflects the
progress made in the community of inter
est as a factor in suppreSsing the rate
cutting, which has made such serious in
roads upon railroad earnings In times
past. On the other hand, the reduction
in the freight movement is not entirely
a reaSSuring fact. In part this condi-
ton is due to- the higher grade of much
of the freight which is moved, and which
is a natural consequence of the prosper
Gus condition of the country. The east
ern movement of agricultural products
shows a falling off, partly owing to the
shortage. of corn crop and holding back
Of cotton. But the westward movement
of merchandise, whose classification is
under higher freight rates, has contin-
ued at an unprecedented volume. While
this condition has served to sustain rail-
road earnings, it is obviously not a self
7C ri
one to the enjoyment of past prosper
ity. In the steel trade the reports are
excellent conditions following the set
tlement of the labor dispute, with large
new demand in filling, belated orders with
"a large residue OF steel requirements
thrown upon next years production by
the mills. The statement of the month
fly net earnings published by the United
States Steel corporation on the occasion
of the declaration of the regular quarter
ly dividends upon it's stocks is 2eonsid-
sidered corroborative of the healthy eo1-
Elton of the steel industry, which is re-
garded as an index of the business con-
Cifion of the whole country. The with
drawal Of artificial support OF the stock
market, however, revealed soma disturb
ing conditions as to the status of many
stocks which had been MOST subject to
manipulation. None of the minor rail
road stocks which had been subjected
to operations by spectflt' We pools suffer
ed vile re4apSeS,1 but the1 most striking
effects were shown In the long list of
tindustrialS.,ys Attempts to market small
amounts of some of these stocks resulted
in a collapse. of their prices into frag7
nents Several factors combined to
awaken the latent dfstrust with which
these securities are habitually regarded
and which eis reflected in the low prices
which they sell compared with the rate
of dividend return. The nominal cause
was the declared constitutionality of an
antitrust law of New. York state which
emphasized a growing dread of attack
by federal legislation. The. collapse of
the stock Of Amalgamated Copper earlier
in the month has caused increasing atten-
tien to the lack of public information re-
garding the conditions of other indus
trial corporations. The action of the Unit
ed States Steel corporation in publishing
a statement of monthly net earnings
opened up the necessity of otherocorpora-
tienS following suit. Yearly reports of
some of the minor companies, recently
have shown decline in net earnings,
and failure to maintain dividends The
question of over-ca pitalization and abil-
ityt to contjnueI dividends inaany. but the
most prosperous times have received re-
newed attention. and parallels are drawn
with the experiences of railroad corpora
tfons under the earlier financial methods
of the country, and the bankruptcies and
reorganizations in reaching sound con-
ditions or organizations Money market
conditions have continued favorable, but
the termination of the interior demand
for currency. isdawaited. to insure future
conditions. 4 49,
Railroad bonds have heen dull and ir-