The daily morning journal and courier., 1902-08-12

world, but some artificial effort was perceptible to foster the stimulating in-
 huence Of these. The entire absence of any official cOrroboration or counte- ! nance for the rumors caused a pause
 in the speculation based upon them. 1 The necessity for some arrangement to 1 haTmOnize perfectly the new order of 1 things by reason of the change in con- l trol of the Louisville and Nashville and
 the passing of the Chicago and Eastern Illinois to the St. Louis and San Fran cisco is generally recognized. COnjec- | ture on the recent changes has received what is supposed to be a clearer light
 in the suggestion that the great stand ard railroads have not always inaugu- rated the plans which have added new connections to their lines. Smaller lines
 that have seemed available for the ex- | tension of the larger systems are be- | lieved to have been bought by power full speculative parties with suggestive intimations of possible plans for eXten- sion that might prove disturbing to the whole railroad world, and which prob ably added to the incentive to pay some of the extraordinary prices which have
 been paid by the threatened companies | for their control.
 There are abundant opportunities of | this class still remaining on the rail- road map. But attention was diverted anew to the money market to-day, in view of the heavy inroad upon the sur
 plus reserves of the banks revealed by Saturdays bank statement. Many IToyI street of the promise of the harvest, the large traffic moving on the railroads and the indications for an unusually large fall trade in all branches. The present high level of prices for grain carrying railroads is the result of for mer buying to discount these very con- ditions. It is certain also that the more active business is the more demand
 there will be for cash in the country's
 circulation, thus drawing it from bank
 reserves where it might serve as basis
 for credits. Western banks, in com
 mon with those of the east, are loaned
 close to their available resources, and the demand for cash upon eastern
 banks is expected to be rather more
 less than usual at the crop-moving sea-
 son, now close at hand.
 It is observed also that foreign ex-
 change bankers are hesitating to offer exchange bills against future shipments of merchandise, owing to the knowledge
 that large short interest already ex- ists in exchange on account of borrow
 ings from abroad which mature during
 the fall. Attention was attracted by the estimate of the Canadian gold com- missioner that the gold output of the
 Klondike for this season would proba- bly not exceed $14000,000, as compared
 with $21, 100000 for last season. Call money rates rose above per cent. to-
 day as a result of these considerations on the part of lenders of money, and
 the time money rates were also firmer. During the final hour the pressure to sell became urgent and prices declined sharply throughout the list. St. Louis Southwestern preferred, Norfolk and Western Union were conspicuously strong in the early dealings, but they lost most of their gains in the late re- action. St. Louis Southwestern pre- ferred stiffened suddenly to the best at the last. The closing generally was ir- regular.
 Selling to realize made the bond mar ket easier. Total sales, par value, $1,- 100000
 United States threes advanced 4 per cent. on the last call