The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-08-19

NEW YORK, Aug. 1S.-A dull and
sagging stock market today was the
natural consequence of various evil
dences going to show that the expand
ing needs of the circulation are MAX
ing increasing inroads upon banking
reserves. The continued transfer of
credits to foreign lenders through the
medium of the exchange market niti-
gated the anxiety over the money
outlook without entirely curing it.
The response of the London discount
market to the American borrowing de-
mand gives warning that the process
may be checked by bringing the in
terest rates of the two centers to a
parity. In the local money market the
banks very generally marked up their
rates for call loans to Az per cent,
and the rate touched per cent dur
ing the morning. There was less de-
mand for commercial paper, and the
rates for time loans were firmly held
at per cent for all periods. Reports
from interior monetary centers were
OF firm tone to the money market and
a large demand from smaller town and
country places for currency, indicat-
ing the nearer approach of the demand
upon New York reserves. New York
exchange at Chicago continued to
droop, and was quoted at 10 cents dis
count, compared with 20 cents premi-
UNI early last week.
The Government Revenues.
The New York subtreasury is con-
tr1buting slightly to the local money
market by reason of the full tide in
the monthly pension payment, but the
recent daily deficit reported by the
treasury at Washington gave place to-
day to surplus of several hundred
thousand dollars for the first day dur
ing the current month
Ih1S recalls the course of the gov
eminent revenues last month, the de-
f1c1t having reached nearly $4,000, 900
about the middle of the month, but
falling to $7,500,000 by the end of the
month. Saturdays treasury state
ment showed a deficit for the month
to date of $2,751, 1927, compared with a
surplus of more than 100000 for the
corresponding period last year. The
decrease in internal revenue thus far
this month by reason of the repeal of
the war taxes has reached 50, 4O1, pa
compared with last year, while the
customs receipts this month are So
6S6,324 greater than last year, and the
total treasury receipts have expanded
this month $1,221.195 over last year.
1t is only, therefore, by reason of an
increase in the months expenditures
by the government of 1850, 900 that
the money market has experienced any
relief from the drain caused last year
by the governments surplus.
Whether the increased rate of ex-
penditureS of the government is like
ly to be kept up is a problem much
discussed in Wall street owing to the
approaching depletion of banking re-
serves. Besides the local money sit
uation, the market was depressed by
selling of stocks for London account
owing to hardening money rates there.
Railroad Earnings Decline.
June reported showed some decline in
the Southwest owing to shortage In
the corn movement, and intimations
were given of probably similar results
for July. The reported retirement of
the president of the United States
Steel corporation had some influence i'm
the general market, although the
stocks of that corporation were but
little affected. The leading factors in
the heaviness of the market were
Louisville & Nashville on supposed
pre- gress in the financial readjustment;
in Toledo, st. Louis & Western on
rumors of Vanderbilt control; in Texas
& Pacific on the alleged seeking of
control by ST. Louis & San Francisco;
in Chicago Terminal stocks on rumor-
ed plans of new tenants and on a
number of minor Specialties The clos
ing tone was dull and heavy
The reduction in the yearly interest
disbursement on the Central ee
Georgia first incomes weakened that
group of bonds and had some sym
pathetic effect elsewhere. Total sales,
par value, $1,770,000. United States re-
funding Is advanced u and the new
As u per cent on the last call.
Stocks. :