The St. Louis Republic., 1902-11-16
STOCK MARKET is STILL
INCLINED TO NERVOUSNESS.
.ERRATIC FLUCTUATIONS ALL
THROUGH THE SESSION.
Bank Statement Created Favora-
BILE Impression and Stocks
Closed Firm and Higher.

New York. Nov. 1a-There was still much
nervousness and misgiving reflected in the
stock market to-day and there We're erratic
fluctuations up and down throughout the
session. The market closed firm however,
and at net advances OF l to 2 points over
last night for the principal stocks The
bank statement seemed the deciding factor
In driving the bears to cover
The loss in cash on the week was rather.
less than expected, but the loan contrac-
ton was smaller than was hoped for in
view OF the heavy liquidation in the stock
market during the week. The market re-
acted sharply Immediately after the pub
lication OF the statement. But it was
argued that the heaviest liquidation which
occurred in yesterdays stock market would
only figure for one day in the weeks aver
ages OF the banks. so that the statement
banks
The turn or the flow of the currency from
the interior to New York aroused hopes
OF relief of the money situation from that
source. The extent OF the recent decline
and the length of time it has continued.
professional traders, skilled i'm the reading
of symptoms of speculative markets.
NO CAUSE FOR ALARM
Bankers were quite unanimous in DENYING
any occasion for alarming rumors of finan-
cial unsoundneSS in that portion of the
financial world. and their assurances had a
pointed out that prices had fallen all the
way from Is to 30 points for the principal
year 1t is also fact that at the low level
of Friday. although many stocks reached
the lowest prices of the year. there were
many of the speculative favorites. and those
among the stocks which have suffered most
severely, from liquidation that were still
from 20 to 10 points above the low level of
the early part of the year.
In the liquidation of this week sellers of
stocks seem to have acted on their own
dsposing of their holdings at profit while
there was the danger that conditions mighc
develop which would necessitate still
them. The conviction gained ground that
prices had been pushed too high even TO
discount the many favorable future devel-
was generally perceived to be due to large
buying by powerful speculative. conbina-
demand for permanent holdings
ides buying these large holdings. the
speculative combinations had exhausted
every device of manipulation to lift the
price level of their securities in the mar
ket. 1t was realized that borrowed money
represented the resources by which these
enormous blocks of stock were held on mar
GIN The situation was thus one of a
threatening weight hanging over the mar
ues at any time. The market values of Sc
curities were thus dstrusted as an unstable
basis for credits. This distrust has been
particularly manifest the part of for
eigners.
AMERICAN STOCKS DECLINE
The demand for American securities In
quality. Foreigners have loaned money
freely to American bankers. which has been
many new securities, but have to look to
old and tried securities collateral for
their loans and have shown no disposition
ments in new American securities. Consid-
ering the large amount CT idle capital
abroad aaSs psrtieIlarly in France the dimn-
try, and the large sums due foreigners by
American borrowers. this refusal of our
securities is notable.
The root of this lies in distrust of the
bass of our credits. The result has been
that when underwriting syndicates under
take TO distribute their securities they find
little disposition amongst foreigners to take
them, With a resulting necessity of finding
Ssher ican to h9nidae their Amer
the home market for new securi-
ties has also become slow. This means
barked in new fotations are not in very
liquid state and the capital involved is
to certain extent locked up or fixed: The
necessity for the formation of syndicate
to take over from one of the newer trust
companies its holdings of securities of one
of the recent industrial combinations which
was revealed last Saturday. after the
weeks business on the Stock Exchange
had closed, was taken much to heart as
prTbao.e Tba d,,e symptom & OF % general condition.
last year or two. including issues of bonds
secured by collateral Of railroad stocks
bought for control at record prices. makes
these issues The feeling crystallized this
week that liauidation already delayed was
Inevitable and 1t was accompanied with
some degree OF precipitation, and no doubt
at considerable sacrifice.
CREDITS IMPROVED.
That the fabric of credits as well as the
values upon which they are based. has been
much improved in health as a result Of the
weeks events IS the universal sentiment in
of the present situation is the entire disap-
pearance Of rumors Of new combinations
part of the controlling interests. lest their
control should be Mested from them over
night This is in striking contrast to the
order of things when the Northern Securt-
ties Company was formed and again when
control of Louisville and Nashville passed
as an episode in speculative campaign In
the stock.
1t is a matter of course that with enor
nous selling OF stock there must be enor-
any one stock no longer arouse the sus-
picion that some one Is buying for control
The reason Is that capital outlay in the
and the market has become slow.
The underwriters and supporters have suf-
cient to do to protect these Sine new h ventures
forced to let go some large holdings of high
grade stock to accomplish this: holdings
TO attempt controlling influence in the prop
critics. This relieves the insiders from the
necessity they have, been under to hold
lIices at a high level to discourage buying
for control There is rather an inducement
to connive at declines in prices in order to
help force out rival holders who are under
pressure to liquidate.
Each day in Wall street sees new crop
of rumors of cunning" campaign against
one or another group. long of certain stocks.
Former uncertainties continue to hover
over the market. including the possible gold
exports and the probable delay OF the period
for the return flow of currency from the In
terror and have helped to keep the market
nervous and unsettled.
Bonds have been under pressure but have
not been so freely sold as stocks.
United States 3s declined u. the new As
~ the old As y and the 2s 1 per cent. as
compared with last weeks closing call.