The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1902-12-14
SPECTATORS DISAPPOINTED
BY THE MONEY STRINGENCY.
SELLING MOVEMENT GEN
ER.AI IN WALL STREET.
Syndicate Calls for Heavy Install
ments on subscriptions Are
Also Disturbing.

New York. Dee. lS.-The small decrease in
the loan item of the banks disclosed by the
weekly statement to-day proved a d!sap-
poin,ment In specuiators. and stocks We're
sold freely after its publication. The mar
kct closed. in consequence, active ami weak.
Earlier in the day the movement was ner-
TouS and uncertain on Il rather active mar
ket. There We're several alternate advances
and declines before the final active selling
movement. TIL. volume of the weeks
liquidation in stocks under the losses en-
tailed We're felt to promise a more extern
sive loan contraction than that reported.
which was S2.o65 $500, In yesterdays late
drive against the bears the impression got
around that an increaS. III surplus reserve
! might be disclosed. To-day. by reason of
a heavy loan contraction and some special
movements OF cash from nearby points. the
spectators We're the more disappointed for
this reason over the actual showing. 1t
Is possible that the actual loan contraction
was in the latter part of the week and thus
figured for only part of the week in the
statement of averages. But there Is also
the possibility that the loans called from
the stock market were put out again TO
Syndicates and otherwise. \ feature of the
days news was a number Of additional calls
for inst ailments of syndicate subscriptions.
inclu'iing the SN.Hn.0t. inStaIlmentS on the
New York Central bond UNDERWATER. which
was reported to have caused some surprise
to subscribers.
No RELIEF IN SIGHT.
At this time there is no relief in sight
from the Su~btreasIry's drain On the money
market. ana lIt' lIIit ltdlIS AhE an psii'u-
are at e per cent and for shorter periods as
high as = per cent. Severe losses In prices
of stocks haze resulted from the weeks
trading at the stock Exchange. as a result
of the crisis in the mone,,- market The
week started OFF with some show of resist
ance to depression. chiefly shown in a very
dull market. showing the determination ct
holders not TO sacrifice their holdings at a
time when the ahsprPiivo power "f the mar
E ESa was Of very ,hs slight a5rcia a ltiss fr0 msSS iriaitidu al
causes. notably in Sugar and Amai"amateo
Copper. helped the contest againS; reaction.
hut by Wednesday afternoon the market
had turned weak. and ii became evident
that the hopes of tiding over the money re-
uuirements of the market until the turn nf
the wear would have TO be abandoned. The
banks and money lenders seem TO have
taken Il decision to prepare at once for the
began to r"trenrh by the contraction OF
loans outstanding in the stock market. The
result was considerable forced liIuidations
and Il ily falling, market. The acute
phase e Venezuelan situation had con-
SideraL- feet on the market. principally of
a ~antimenta character; hut no other cause
entire inability e borrowers tn obtain
funds with which to carry their holdings OF
stocks
PRESSURE EXPECTED.
The fact has long been known that the
money market would he subjected to So
we're pressure to meet year-enG TeIu re-
seen IS almost invariably provided for IN
financial affairs and the apparent effective
ness Cl the resistance winch naU Deen 'S-
tablished to the decline Iulled sentiment in
to a sense of security that the worst had
been passed. The incidents which had the
principal influence in disturbing confidence
were the transfer of Sio0.Ge0 to San Fran
cisco on Monday and the shipment of ST.
0n. eco in gold to South America in the mid |
die of the week. The large movement of
gold to San Francisco this fall is out of
the ordinary and no clear explanation has /.
been offered for il. 1t has been SurmiSed
that commitments for land speculation on !
the Pacific Coast have created the special
need. and this has given rise to some fear /
the same condition exists to a wide
in other parts of the West. thus as- !
!ieved to be- at the root Of the present
for the money market. The move !
ment of gold to South America dist : Il
the London money market has the
power to divert this demand. which is in
of claims upon London. through
New York.
1t is believed that a considerable demand
from that quarter remains still! to he Sltis-
fled. and the retention of a +-per-cent dis
count rate by the Bank of England. in the
face of falling reserves. is believed to be
due to confidence that the further demand
from South America can he diverted upon
turbing the money market was believed TO
be the preparation for the payment of the
SIC. o.Oo5 dividend on Standard Oil stock
lext Monday. Presumably. money accuTnu-
ated for this purpose. has been placed in |
loans. and was called in for use. |
is typical of what has been going on
all through the market. Large amounts of
lime loans have matured during the week
md some money brokers report that in such !