The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1902-12-28
STOCK MARKET RECEIVERS
AFTER BANK STATEMENT.
BUSINESS STILL HAMPERED
BY THE HOLIDAYS.
Movement of Cash in Large Fl
nancial Centers Attracts
Much Attention.

New York. Dec. 27.-The stock market
Matted in an uncertain way to-day before
the publication of the bank statement, and
after a dip following the publication was
strongly supported and closed firm at gen.
eral recoveries. Rock Island ard Anal
samated Copper We're effective leaders in
the recovery. The 211-point rise in Rock
Island had no other explanation than a
good statement of earnings for November
and claims for very large future earnings.
The buying of the stock was concentrated
and was attributed to Western orders. The
movement In A~malgamated Copper was re-
ported to be due to buying on account
of rival interests. which was offered as
corroborative evidence Of rumors of an
agreement to end the copper war by arbi-
tration. Amalgamated interests put out
disclaimers of these rumors. The stock add
vanced 3a on very heavy buying. There was
palpable profit-taking in Brooklyn Tran
sit. Manhattan and Erie under cover of the
new movement in Rock Island. Reports
from the West of a threatened breach IN
railroad relations growing out of the re-
cent contest in Colorado Fuel caused a
break in Denver and Rio Grande preferred.
The decrease of over two millions in bank
ing reserves was larger than foreshadowed.
Some relief was felt. although. at the de-
crease In loans. though it was small. There
was some apprehension that the loans nad
been expanded during the week to obtain
funds for the liquidation for foreign loans.
DROP IN RESERVES.
The heavy drop in cash reserves and the
enormous expansion in credits of the banks
of England and of Germany attracted at
tention. This is not abnormal at the year
end in the case of the great central banking
institutions abroad. and there Is always a
quick and violent return of funds into the
reserves after the turn of the year. the
retention of the 4 per cent Bank of England
rate. however, is not OF much significance,
as the bank has been charging Az per cent.
Another 100000 was transferred to New
Orleans through the su5treasury to-day.
closed the possibility of an emergency de-
mand from Chicago for funds. A feature
of the day was a number of sharp ad-
vances in inconspicuOus stocks. The weeks
stock market has shown the normal re-
preston caused by the Intervention of a
midweek holiday, which always tends to
discourage activity. Apparently, the short
account predominated In the accounts on
Wednesday, and the buying TO cover helped
to sustain the market. The professional
sentiment rather than to consult large I'M
DERIVING conditions, have been persistent
short sellers of the market for several
days. Their argument is that the rally in
the market, which followed the formation
of the bankers $50,OO0.00 money pool. has
run too fast and too far. making a fresh
reaction probable.
RISE is CHECKED.
There has been a perceptible check to the
upward movement of prices, but no very
severe selling pressure developed, and the
buying to cover by shorts has been suffi-
Gent to afford support to prices. The
strength of a number of stocks from in
dividual causes has also had a sympathetic
effect in keeping up prices elsewhere. The
tightneSs OF the money market and the con-
sideration of the heavy year-end require
ments to be met have induced some eau
maintain a waiting attitude. Actual bust
ness has been small, and prospects rather
than existing conditions. have formed
the subject matter Of discussion. OF prev
alent conditions several of a Spmaphar nm
favorable character had to be contended
with besides the Tightening of the money
the showing made by the Vanderbilt rail-
roads in the matter of net earnings. The
large. increase in operating expenses dis
closed by such representative systems as
the New York Central and the Lake Shore
and the consequent decrease in the net re-
turn were pondered for their significance,
rejecting as they do a tendency quite gen.
eral throughout the railroad world. The
week has seen several announcements of
workers. and the current discussion of the
subject shows that this also is a universal
tendency in the railroad world. Coordinate
with this increase in expenses goes the con-
sheraton of the coming Increase in rail-
road freight rates. which may also fairly
be called universal from the scope which
1t has assumed.
GUESSING AT RESULTS.
Conjecture is at fault in trying to decide
what is to be the net result of these wide
reaching changes upon the rate of return
10 StDchIlOlUtTS III TdtlTCdlS. Inc HCIiul Oh
the Canada Southern directors in reverting
to the / per cent semiannual dividend rate
after having disbursed IL per cent for the
preceding half year was not encouraging to
the hopes of coming dividend increases. The
passing of the dividend on St. Joseph and
Grand Island first preferred, had a similar
influence. Yet it is clear that such hopes
are entertained in some cases. Thu con-
1dence engendered by the formation of the
$500 900 bankers pool to meet a possible
emergency has not been seriously dis
turhp5 Rates for time loans have not fol-
lowed the c~all-loan market. and have been
appreciably easier. Except for some de-
out the year-end showing of London banks
in the reserve. item. there has not been a
notable demand for remittance abroad. The
suggestion has come from Berlin that large
foreign bankers were cooperating with the
pool of New York bankers In tiding over
the New York money market by retaining
here ct this time. It Is believed that this
demand upon New York has been simply
deferred. The future of the foreign ex-
change market is studied with great atten-
ward movement of corn and cotton TO sup
ply means Of liquIdating our foreign obli-
cations.
LOANS IN WAITING.
While foreign money markets are always
quick to respond to the disbursements
which come with the turn of the year. 1t
have been awaiting this easier condition of
money markets. including a TransVaal. n
and a French loan. which are ex-
pected to call for an aggregate of perhaps
$500. OO0 1000. In the existing state of the for
eign exchanges, our W market can
scarcely fail to be affected by the condi-
lions in foreign money markets. Helpful
factors in the market have been the very
large anthracite traffic reported by the
the prospective benefit to the sugar
refining industry of the Cuban reciprocity
treaty. rumors of a settlement of cOntro-
between the dominating interests in
the copper industries and assertions of con-
troll secured by Pennsylvania of Reading
and of Brooklyn Transit.
There has been some good buying of
bonds. which is attributed to investment
from capitalists who are antici-
pating the distribution of January profits.
States Is advanced Il per cent and
the IS coupon. the new is and old IS u per
cent. as compared with the closing call of
last week.