The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-08-03

and only few professional room trad
ers mad anything to do with the market
Their operations did not carry prices far
away from last nights level at any time
The holiday in London emphasized the
dizziness. The closing tone was heavy.
The bank statement failed to conform to
expectations, but it's publication did not
affect the market to any appreciate ex-
tent. Instead of an expected decrease of
over $2,000,O00 in cash, the banks report
a decline in reserves of about 100000.
A decrease in loans was hoped for. in
stead of which the loan item has ex
panded $6,377, 100. The resulting in
serve requirements to the extent of
$1,262,075, which, together with the de-
crease in the cash, brings down the sur
extent of $1.764, 275.
The only feature in todays market
worth specifying We're advances in the
tions; a loss of over 2 points in ST. Louis
d San Francisco and a buoyant recovery
in the Central of Georgia income bonds.
Through the Week
This week has seen a check to the
growing disposition to buy stocks, which
was carrying prices upward throughout
the list. Various factors have INTERVIEWED
which might serve as explanation of this
been due entirely to a desire to take
check, but the selling seems to have
speculative profits. In some stocks the
selling out of the effective leaders in the
operations for the advance has been
IdlH0I OBVIOUS. LII OIn0rS appearances
have suggested that the principal oper-
ators for the advance have helped the
reaction, with view to shaking out
weak and cumbersome followers, with a
view to further facilitate further advance
and to take on fresh holdings of stock
at the decline.
Such movements are incidents of all
professional bull operations The market
has not yielded to acute weakness at any
time, and there have been sustaining
points of strength at all times in the
to individual causes. real or supposed
A strong undertone is indicated by the
fact that as prices receded the activity of
the market has sensibly diminished,
showing that holders have withheld Of
ferings of stocks at lower levels. Satur-
days bank statement was a predispos-
ing cause for the taking Of profits at the
opening of the week.
Inroads Upon Credits.
The large loan expansion was a warn
ing. that the prevailing speculation was
making large inroads upon available
credits, while the feeling in the financial
community is that back reserves should
be conserved at this time, in preparation
for coming large demands for interior re-
quirementS. The large exports of gold
announced for Tuesday, followed by ad-
phasized this impression. The continued
tirmness of the foreign exchange market
after the shipments indicated that fur
Their outgo was within the probabilities
y
ton of foreign money markets might be
looked for after the month-end require
ments are met. But at the present time
the London market is confronted with a
payment of 20 per cent installment on
the $3.50, 900 consol issue, while in
Paris the Bank of France is making
plan, which will necessitate a temporary
tie-up of a large sum. The present large
Indebtedness of the New York money
market to foreign markets is now well
understand and tna government financial
measures referred to are believed to eX-
plain the indisposition of foreign cred
itorS to extend loans here, notwithstand-
ing the advantage offered by higher in
tereSt rates.
Reduced Government Deficit.
The latter part of the month has also
altered the expectations of relief to the
money market by continuing govern
ment deficit 40 The he deficit ran at one time
at the end of the month to $7,49S309:
Treasury officials express confidence that
the revenues will soon show surplus,
it is explained that a large part of the
July deficit is due to extraordinary ex-
penditures in payment of war claims.
An unexpected development during the
week was the reported absorption by the
st. Louis & San Francisco of the Chicago
& Eastern Illinois, thus inSuring an en-
trance into Chicago for that system. The
recent large absorption of ST. Louis &
San Francisco was supposed to fOreShad-
ow its Incorporation into the Rock Island
system, and it's strength has helped the
advance in Rock Island on account of
the readjustment of its capital. Chicago &
Eastern Illinois had been marked out for
transfer to some other large system, but
it was expected to go to Illinois Central
Reports are now published that the
Louisville & Nashville was also a bidder
for the property. The fact is disclosed
that competitions and rivals have been
involved rather than progress toward ad
justment of a community of interests to
insure permanent peace and corporation
in the railroad world, such as was but
which the efforts of the financial powers
were tending. In the Eastern trunk line
territory also, the progress of the plan
for the Gould system outlet to the At.
lantic is watched with some solicitude as
to the harmonious adjustment of the
new relations thus created The Rock
Island REIMBURSEMENT plan, now definitely
promulgated, has been the subject of
great interest and conflicting views.
Expansions in Valuations.
good ground for the gre9.< expansions in
valuation which are witnessed as a re-
suit of simple readjustment of capital is
sues on property which is itself left I'M
altered in it's volume or earning power
Some of the reports of the net earnings
of railroads for June are not satisfac
tory, owing to the large inroads upon in
creases of gross earnings made by operat-
ing expenses. However, general conditions
of the crops, of the iron trade, of industry
in general and of current railroad earn
ingS are considered satisfactory and have
had no apparent bearing on the reaction
in the stock market.
The only notable activity in the bond
market has been in convertible bond is
sues. The investment demand has been
quiet. United States old As, registered,
and the 5s have advanced II per cent on
call.