The St. Louis Republic., 1902-05-11
STOCKS ARE DEAD DULL AS
RESULT OF STRIKE ORDER.
COAL-CARRYING ROADS SEEM
LEAST AFFECTED.
Unexpectedly Poor Showing by
Associated Banks Also Has
Depressing Effect.

New York. May 10.-The effect of the
strike order of the anthracite mine work
ers seemed to kill speculative interest in
the stock market to-day. Prices went low
er. in some cases, notably so. but the vol
ume OF the liquidation was trivial, and was
rather less in the coalers than in some
other departments of the list There were
some large individual selling orders in
Union Pacific, ST. Paul and number of
other prominent stocks, in which specu-
lative party has been active recently. SEEM
ingly on the assumption that dividend in
creases were to be looked for in those
stocks The Unexpectedly poor showing by
the banks had much the same effect on
stocks causing struggling declines on light
selling. The opinion was heard that the an
thracite operators prefer a strike at this
time, if one. Is inevitable. rather than to
have 1t come in the fall. This does not con-
sst with the confident assurance that has
been professed in Wall street that there
would be no strike at all. The strike is not
taken very gravely. even now, as is shown
by the effect on the stocks of the coal
carrying roads
Loss of Large Cash Reserves.
The loss of over s6.000.0jO in cash reserves.
compared with estimates based on the
by the banks themselves of about 100000,
was rather vaguely attributed to local
movements" The loan contraction of 81 :
i.5o0 showed but meager result OF the
stock-market liquidation. There is moth
ing to show how far the mucf-discussed po-
siuon of the trust companies may have
been altered for the better by the week
events. With discounts in Paris and Ber-
lin below . per cent and time loans for four
and six months bills at a. TO per cent in
New York and even higher for shorter Pc
RODS. the expansion in our loan obligations
in foreign money markets is naturally in
creasinS and represents balance to be met
market started of in the throes of the anx-
iety caused by the suspension of three Stock
Exchange houses and the outgrowth of the
collapse of the Webb-M Meyer group of Sc
curities, which had been inflated by a Wig
orous process of manipulation and Specula-
tive buying on credit.
Many Loans Are Called.
The stringency in the money. market had
inducing discrimination against just this
class of collateral. With credits curtailed,
the manipulators found themselves unable
to support their stocks, and the forced
liquidation caused an utter collapse AS
the event proved, the general market stood
up remarkably well under the shock. with
the result that sentiment was greatly reas-
Sured and confidence in the Soundness of
the position became more pronounced than
for some time past. The episode has been
called a ''house-cleaning' in Wall street
There was widespread apprehension that
the condition of affairs revealed by this
episide and by the International Power
sion. To say nothing of the many new Sc
curties which have recently been pushed
forward into speculative activity and ad-
vancing prices. there are many old-estab-
lished, high-grade stocks which have been
lifted te unprecedented prices. for which
there are no good grounds. to account
Stocks of this kind generally accumulate
in the hands of investment holders. either
for the purpose of control or Indifference
to the market fluctuations in price. This
may either be in the confidence that ulti-
mate value of the property will justify
present eXtravagant prices or in the real!Z-
ing that the marketing of large holdings
would break the price.
Quickly Responds to Manipulation.
The small floating supply makes such
stocks quickly responsive to small de-
mand or to manipulation. which Is prac-
ticed in such stocks for the sentimental
effect on the general market Such stocks
are. however, equally sensitive to light
liquidation. There are many stocks in the
at price levels thus attained The fact has
been often pointed out Of late that the pres
ent volume of credits in the country is
greatly expanded and feeling on this point
was made additionally sensitive by the ac-
tion of TIE clearinghouse authorities last
admitted in future TO clearinghouse privi-
leges must make weekly reports for pub-
lication of their condition. and must main
tain cash reserves in their own vaults equal
to those required of clearinghouse members
This was obviously an admission that the
local trust companies should maintain cash
reserves against the very large collateral
loans which they have out. instead of rely
ing on their cash deposits with the banks
which figure as cash reserves there also.
The nervousness on Monday was thus ac-
counted fo.. There was extensive calling OF