The St. Louis Republic., 1902-12-21
STOCK MARKET is LEFT
TO THE PROFESSIONALS.
WALL STREET DISPOSED TO
TAKE MATTERS QUIETLY.
Feeling Is That Bankers Syndi-
cate Has Relieved Year-End
Settlements of Danger.

significance in to-day's desultory trading
in stocks. which was almost wholly in the
hands of professional operators. Commits
sion houses reported falling effect in the
recently renewed business. This market is
disposed to take on an attitude of waiting
after the weeks covering moment. realiZ-
ing that the money market still has heavy
demands TO meet. notwithstanding the feel
ing of greater confidence in its ability to
do SO as a result ot the existence OF the
bankers protective pool. The bank state
mcnt emphasizes the deSirablty OF con-
serNatiOn III the use CT credits. Ihe loan
contraction OF S.5l0.299 Was received with
satisfaction. but the resulting decrease IN
reserve requirements was Sul lnSuilicieHt
TO Offset the Shriukagc in cash. when was
$l.762, leo This still leaves the surplus at
over SS.090.cOo. compared with $5.iS5.32'
year ago. Next week SloU1.NO subscrip-
tionS TO the Western Maryland syndicate
must be met. followed by other syndicate
yearly disbursements. The stock niaLhe.
rallied sharply after the selling incident
to the bank statement. and closed llrlh- "a "A
sudden squirt in sugar to lss helped the
final rally. That stock had been sttohs,
throughout. apparently on the ground or
the prospect Of the adoption of the cuban
mated speculation in Texas ana racine
which rose to il1s. and then fell TO os3s. uii-
der very heavy offerings. There was some
investment demands for bonds. which Were
firmly held.
OPENING IS WEAK.
The stock market opened weak. with
/.
n renewal of the demoraiized conditions OF
last week, during the period of forced rqui-
dation.
The announcement was made on Monday
of the formation of Il bankers protective
pool the subscriptions to which amounteu
to SJ0.oJ1,0Jo. This sum was to be paced al
the disposal of President Baker of the FIRST
National Bank. President Stillman OF me
National City Bank and ]: L. Morgan. as
a committee, and to be liable for loans on
call in case of an emergency in the money
market. The liquidation in the money mar
ket was Immediately checked and some re-
covery ensued. The effect of this measure
was in some doubt for two days following,
but il was ultimately the cause or restor-
ing a large degree of confidence supple
mented by other favorable factors the re-
suit was to remove the general feelili;s OF
depression and to induce rapid recovery
In the stock market. This ensued without
a dollar of the S5O,090oo0 fund being drawn
upon. The knowledge OF the existence OF
this reserve fund served to induce freer CT
ferinGs of funds from other sources. and to
unlock some resources that had been Jeal-
ously guarded either from timidity or from
a desire to take advantage of higher rates,
which were quite generally expected to RUE
before the end of the year: ] Rates for for
week. six months loans being shaded to
below per cent. and the premium on loans
for shorter periods has disappeared. Upon
the first announcement of the formation OF
this bankers pool there was some DISPOSE
ton to attach a sinister significance to i as
a symptom of more serious state of affairs
ACTION NOT NEW.
The measure does not differ in kind of de-
gree from those adopted at previous times
of crisis: except that heretofore these meas
ures were in the hands of the Clearing
house authorities. while in the present
instance the management is confined to pri-
vate hands. Inquiries poured into New
York from all quarters as to the call for
such important provisions. These seem TO
have met with satisfactory response, anu
the feeling of confidence grew that the year
end settlements would be met without trou-
BILE. Besides the strong sentimental erect
of the protective pool, the actual develop
ments of the week tended to strengthen the
condition of the banks. Receipts of currency
Were large from the interior and the drain
by the Subtreasury was much relaxed. Part
of the Government requirements seem to
have been drawn from other centers. and
large pension payments at New York have
relieved the banks. One of the most reaS-
suring factors In the money situation has
been the continued sOftness of the foreign
exchange market, notwithstandinE the easy
partly due to larger supplies of grain bills
and 1t is hoped that the sharp break in
the corn market will result In increased
!shment of the exchange market. 1t Is man
ifest that New York bankers have been
eign markets. as well as to obtain extern
sions of maturing loans. which has been diff
,icult to do for some time past. London has
been moderate buyer Of stocks in the
sale abroad of the $4,000 600 issue of Penn
sylvania Car Trust certificates have been
partly available in the exchange market. A
willingness on the part - of foreigners to
make investments in our securities, which |
they have conspicuously refrained from do
ing at the high level OF. prices recently pre-
vallfng. would be development of prime |
importance in providing means to settle the |
overstrained foreign credits.
PANIC ANNIVERSARY. !
An almost superstitious dread attached |
W tIe dpprOaCn OF December IL. the sew
anth anniversary of the so-calied Vene-
zuelan panic. due to President Cleveland's s |
message to Congress on the boundary Ques- |
lion: The passage Of the anniversary on |
Wednesday without trouble undoubtedly |
prompted buying of stocks on the part OF |
those whose fears had been aroused. Very
arge short lines We're covered throughout |
ne week. and this was substantial aid to
The recovery, especially in some speculative |
avorites where organized pools have d. |
'ected a campaign against the shorts. Spe- |
such as the absorption by the United States |
steel Corporation of the Union Steel Com
oany. the possible benefit to Sugar from the
'ecent reciprocity treaty. rhe better CON
iitions in the Copper trade etc. MANY ri
Eors OF other developments have also fig
lred in the market. The fact Is not lost |
light of that many syndicate and other re-
luirements remain to be met before the end
IF the year. but feeling is much more conf
luately provided for.
The bond market moved in sympatbv
with stocks. United States new As declined
)ne-half per cent compared with the
closing call OF last week