The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1902-08-03

seen a cneck to the growing disposition 10
buy stocks which was carrying prices up
wards throughout the list. Various factors
have interviewed winch might serve as an
| explanation of this check. but the selling
seems TO nave been due entirely TO a desire
TO take speculative profits. Commitments
on the long side had become considerable
as q result of a continued rise, and
the profit taking has necessitated a consid 4
| cradle absorption. In some stocks the sell
ing out of the effective leaders in the ok-
erations for the advance has been ratf.er
obvious. In others appearances have Sig
Sested that the principal operators torfne
advance have helped the reaction with a
view to shaking out weak and cumbersome
followers with a view TO facilitate further
advance and take on fresh holdings Of
stock at the decline. Such movements are
incidents of al professional bull operations.
The market has not yielded To acute weak
ness at any time and there have been suS-
tanning points of strength at all times in
the form of advances in special stocks. due
to individual causes. real or supposed.
strong undertone was indicated by the
fact that as prices receded the activity. of
the market has diminished. showing thds
holders have withheld offerings of stocks
at the lower price levels.
Effect of Loan Expansion.
Last Saturdays bank statement was a
preGlSposlnG cause for the taking of profits
at the opening of the week. The large loan
expansion was a warning that the prevailing
speculation was making large inrodds upon
available credits. while the feeling in the
InduCldl community 10 that bank reserve
should be conserved at this time in prep
ration for coming large demands for inteE
requirements. The large exports of "a
announced for Tuesday, followed by add
tionaI shipments of Thursday. emphasizes
this impression. The continued firmness CT
the foreign exchange market after thet
shipments Indicated that further outgo wasi
within the probabilities Under ordinary
circumstances a relaxation of foreign money !
month end requirements are met. But at
the present time the London market is con-
fronted with a payment or a 70 per cent IN
staIlment on the ~Slt0GG.G00 conSOl issue,
while in Paris the Bank Of France is max
ing Preparations for the rentes conversion
plan, which vii! necessitate a temporary
tie-up of a large sum to enable the Gov
eminent to stand ready to redeem such por-
tiols of the issue as holders elect not 20
exchange.
Indebtedness to Foreign
The present large Indebtedness of the
New York money market 10 foreign markets
is now well understood, and the Govern
ment's financial means referred to are be-
lieved to explain the indisposition of foreign
creditors to extend loans here;
standing the advantage offered by higher
interest rates. The latter part of the month
has also altered the expectations of relief
70 the local money market by a continuing
Government deficit. The deficit ran at one
time to over twelve millions, but has been
reduced at the end of the month to 81
4S. 500. Treasury officials express confidence
that the revenue will soon show a surplus.
owing 10 the large customs receipts and it
is explained that a large part of the July
tllA - lux " AZ
in payment of war claims. An unexpected
development during the week was the re-
ported absorption by the St Louis and San
nois, thus insuring an entrance into Chicago
for that system. The recent large absorp-
ton of st. Louis and San Francisco was
supposed to f~oreshadow its incorporation in
to the Rock Island system, and its strength
has helped the advance in Rock Island on
Chicago and Eastern Illinois has been
marked out for transfer to some other
large system, but 1t was expected to go to
the Illinois Central Reports are now pub
lished that the Louisville and Nashville
was also a bidder for the property The
fact is disclosed that competition and rival
ries have been involved rather than prog
ress towards adjustment of a community
of interests to insure permanent peace and
was but recently accepted as the ideal to-
wards which the efforts of the financial
Eastern Trunk Lines Watched.
In the Eastern trunk-line territory also
the progress of the plans Of the Gould sys-
TENS outlet to the Atlantic is watched
with some solicitude. as to the harmonious
adjustment of the new relations thus Gre J
ated. The Rock Island REIMBURSEMENT plan. 4
now definitely promulgated. has been they
subject of great interest and conflicting
views. The prevailing tendency of capittId
closure issues on a highly expanded basis
of valuation Is viewed with considerable
disquiet in the financial world. and the ad-
dition of subsequent stock issues gives rise
to conjectures as to the possible status OF
such securities in the probable periods OF
depression which may occur In the future,
as in the past.
There Is some questioning heard as to the
good ground for the expansions In vaiua-
ton which are witnessed as a result OF sim
pie readjustment of capital issues on prop
erty which is itself left unaltered in Its
volume or earning power. Some Of the re-
ports Of net earnings of railroads for June
are not entirely satisfactory owing to the
large inroads upon increases Of gross earn
ings made by operating expenses. However,
General conditions of the crops. of the iron
trade. of industry in general and OF current
railroad earnings are considered saus1ac-
tory and have had no apparent bearing on
the reaction in the stock market
The only notable activity in the bona
market has been in convertible bond issues.
The Investment demand has been quiet
Urited States olds As registered and the bS
have adYanced "a per cent on call.