The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-03-10
DOUBT IN MARKETS
STOCKS QUIET, WHILE THE I,ARc
Err INTERESTS ARE SIMPLY
AWAITING DEVELOPMENTS
FAITH SHOWN IN MERGER
Investors Show Confidence i'm the
Assurances of the Men Arrang-
ing the Community OF
Interest Plan.

NEW YORK, March 9-Henry C1ews
IN his weekly letter says:
The stock market displays a less con-
ndent underline than some time ago. and
prices were more or less irregular in con
sequence. Many of the big leaders ara
absent or about to leave the city for a
pflef rest, which depriVeS the market OF
any initiative that usually comes from
such sources. Evidently no important
developments are in immediate prospect,
and waiting policy appears to be the
one adopted by the larger interests The
result is thar the usually active stocks
are neglected, and fluctuations are con
hned principally to the low-priced less
important issues.
This state OF affairs may continue for
several weeks. Much depends upon the
outlook for the great merger arrange
mentS which were contemplated when Ie-
gal proceedings were begun against the
Northern Securities company These pro-
ceadings may be protracted, and, involv-
ing as they do not only tremendous
amounts of capital. but highly important
public questions, they must be influential
factors in the situation for an indefinite
period.
Those at the head of this movement,
however, show the most positive conf
dence ii the ultimate success Of their
plans; they unhesitatingly say they have
been devised by tho most skilful counsel
so as to keep within the law and that if
this method fails others less objectiona-
bic viii be put through.
Rank Reserves Are Low.
Other factors of the situation ere also
unfavorable TO free buying of stocks just
now. Bank reserves are unusually low
Tor this period, while loans are at high
record mark. The money market, there
fore, is in no condition to stand any i'm
the stringency, usual about April 1, will
be at hand. Gold exports con-
tinue and Europe is likely TO
make further demands upon our
resources During the tremendous
contest in purchases for control of vari-
Gus roads last spring not only were the
banking resources OF the country utilized,
hut immense sums were borrowed In
Europe to carry through the deals. Be
sides this, large blocks of American Sc
curities on the otner side We're bought
with the same object in view.
Now the tnEe mas come when foreign
loans must Ue lrpaid as Europe needs
the money t. invest in home enterprises
and facilitate a recovery from prolonged
depression there. The vastness of last
years operations may be gagged by the
fact of the demands for the necessary
funds having been 50 great as to wipe
out the enormous commercial credit bal
ance which had accumulated in our favor
for several years previous.
1t is natural that European investors
should now prefer buying their own prop
!. critics at depressed prices rather than
American securities at inflated prices.
It is not, therefore, likely that Europe
will give us much help on our security
market until the equalization process mas
exhausted itself.
No Relief Till April.
No very material relief can be expected
i'm the money market until after April l,
or until funds locked UP in these large
syndicate and underwriting operations
are released. Some big lump sums nave
been tied up in the latter, whose release
might at any time cause sudden ana
beneficial contraction Of loans. The money
,,o,,.1la+ is Tins the second if not the first,
factor in the situation that requires
watching. 49,
Other new unfavorable symptoms are
more frequent decreases in railroad cart
irps losses and delays caused by storms
and symptoms of fresh labor trouples
all of which tend to delay any possl~le
bior inward movement in stocks. Inc crop
situation will also soon begin to ente'
into calculations Back of all these con
siderations. general trade continues falr-
" active and satisfactory. commence IL
the future remains mistaken, though .
more cautious feeling perVades all Grass
es of business men, and operations WhlcI
could be conducted with safety year
ago would not be attempted now Inns
spirit of caution is just now really the
strongest element in the SITUATION.
If would cause no surprise If the mar
ket were to display a sagging tendency 1or
q period. Very likely the big hoIders
would protect prices from any sharp
breaks Just as they have done Tor inc
~ - er1t n
reduction of values would probably meet
with little opposition. On the reasonable
declines good stocks will do to buy for
Quick turns, opportunities for tradlng
seeming to be fairly good.
Nation Will Lose Hoard.
The bright prospect of the senate con-
curing in the passage of the house bill
for the repeal of the war taxes is a IA
vorable factor as if it becomes a law
the disbursements Of the United states
treasury will more nearly equalize the
receipts, and thereby prevent the locking
up of funds in the treasury indefinitely
as at present, to the detriment Cf the
business interests of the country. 1t is
especially important that the bill shoulc
pass during this session of congress, be-
cause the government has no longer the
remedy in its hands, as heretofore, =
letting out it's surplus money through INK
purchase of bonds.
Most of the outstanding United States
bonds are either pledged to the govern
ment against deposits in the national de-
pository banks, or up as security for ma
ticnal bank circulation. What remain
are largely in the hands OF legally ap'
pointed trustees who will not part witt
them on any terms 1t is therefore nee
| essary to pass this bill to prevent q
money disturbance, with disaG,rous con
seouences to the country, which other
wise will come sooner or later, owing tc
the money going into the treasury, anc
| irabiI:tyaof the secretary of the treasury
! t. get it out into circulation again, where
| it legitimately belongs.
The people CT this country cheerfully
pay the taxes when they are prosperous
| The government, therefore, has no right
| to take in this money and lock it up anC
bring disaster on the very people who
contribute these funds. 1t is really Civ
! ing the government a stick With which to
L bao Of he rpnOlp