The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-08-29

NEW YORK, Aug. 28.-There was a
considerable further contraction of activ-
lty in the stock market today, and the
animation which has been shown on the
previous days of this week was lacking
The speculative disappointment caused by
yesterdays reduction of the dividend on
Reading first preferred and the anxiety
over continued depletion of banking re-
serves through the interior demand for
currency We're responsible for the pause
IN the speculative activity. 1t was ap
parent that some sharp losses were in
CURED by the plunging in Reading yester-
day before the dividend reduction was
announced, and in Atchison on the day
before, previous to the report of the
shr1nkage IN July net earnings. There was
some further selling in these stocks to-
day, and Illinois Central reacted from
yesterdays show of strength.
After the pressure to sell by disguised
holders on margin had relaxed, prices
Were pushed up here and there with a
rather sustaining effect on the rest of the
market. No stocks of the first grade were
concerned in this movement, which was
confined to minor railroad stocks and to
some rarely active specialties, notable the
OF consolidation accompanied the rise in
both cases. Sloss- Sheffield SteePs strong
rise was unexplained.
Rise in Canadian Pacific.
The upward movement in Canadian Pa
cine seemed to be due to reports of the
redemption of the company's land granted
bonds. The Toledo, st. Louis & Western
stocks, the Wisconsin Central stocks and
the st. Joseph & Grand Island stocks en-
Joyed the benefit of the revival of old ru-
morS of absorption by strong railroad in
terests. Colorado FuePs early break on
the proclamation of renewed hostilities
between the contending interests in the
property was followed by violent re-
covery and again by reaction.
The undertone of the market was de-
c1dedly improved after the early pressure
relaxed, but there. was no disposition tow
ard the revival Of enthusiasm with which
stocks have recently been bought The
improved feeling was partly due to the
reports current OF measures in contem-
plation for the relief Of the financial sit
uat1on. A report was formulated that the
large banks were concerning measures to
secure by purchase or borrowing a suff1-
Gent increase in holdings of government
ponds TO enable them to expand their
note circulation to a substantial degree
1t Is hoped that bank notes can be shipped
to the interior to meet the demand for
circulation and thus afford protection to
the reserves of lawful money at the
banks.
New Banknotes Forthcoming.
1t was asserted that preparation had
been made by the treasury department to
supply promptly the demand for new
banknotes, which is supplied very slowly
as rule, owing to the time consumed in
engraving and printing notes. 1t has been
supposed that the available supply of gov
eminent bonds had been pretty well swept
off the market, but the belief that the
available means for releasing surplus gov
ernment funds to the market have about
been exhausted has stimulated efforts to
find other means of relief. The deposits
at the subtreasury for transfer to the
interior today amounted to $780, 900, of
which 100000 was for New Orleans and
$500, 900 for San Francisco Without
counting today's operations the subtreas-
ury has absorbed from the market since
last Friday, $5,272, 900, The movement of
channels is believed to have been heavily
against New York also. 1t is evident,
therefore, that a speedy exhaustion of the
margin of surplus reserves of the clear
ing house banks is threatened.
The bond market was less active today
and irregular. Total sales, par value
$3.50, 600. United States old As advanced
Il per cent on the last call.
Stocks.