The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-02-16
STOCKS, BONDS
~ @ AND MONEY.

NEW YORK, Feb. 1S.-An exceedingly
Arauc movement in Metropolitan street
railway confused the speculation in to-
days stock market and discouraged ac-
hvity elsewhere in the market The
large scope of the plan announced and
The large resources demanded for carry
ing them out caused some apprehension,
as was seen by the break in the stock to
below 166, after an opening advance of
over a point. This and the disquietude
pVer the enforcement of the tax ION call
loan collaterals caused some sharp de-
clines In the market recessiOns reach
ing point in some of the prominent
stocks. There was rally before the ap-
pearance OF the bank statement and a re-
ncwed decline after its appearance Met
r0pOlitan Street railway was then taken
vigorously in hand and marked UP to ia
over last nights last price ANA lgamat-
cd copper also became very strong and
moved up 2as. An Over-eXtended short ac-
count was seemingly responsible to a
large extent for the rise in this latter
stock. The combined movement drove
the shorts to cover elsewhere, and the
market rallied wiping out the impor-
liant part of the losses. Manhattan rose
a point over last light. There was a fur
Iner Jump of o points in three. days
Union Bag preferred gained points The
street was prepared for a further exDan-
sloE OF loans and was apparently re-
HCVed that it was no larger than S13 q99
200 put the hope of a gain in cash was
disappointed and the decline of $500, 100
In that Item raised the question whether
Ihe return flow of currency to Chicago
ana interior points is imminent The
market closed quite active and firm at
the rally. In the curb market there were
sales OF metropolitan securities when is
sued at no and the bid price was ad-
Vanced to 116. There were sales of the
srbscription rights at and at TO-
New York trust companies have in
creased their loans on collateral to an
q enormous extent during the last year,
while their reserves are on deposit with
New York banks, except for an insig-
nllCant part and figure in the reserves
OF the banks Figures in interior banks
OF New York are included in the same.
The expansion the country over has
therefore increased the liability upon New
ork bank reserves. This gives added
influence to any suggestion of financial
trouble in the interior, even when it is
of small proportions. Money has con-
tnued easy in Wall street notwithstand-
ing last weeks heavy inroads upon sur
pluS reserves. When the money rates run
ZIP To attractive figures 1t is usual for
the local trust companies to draw on
their deposits with the banks to pay
loans. When the rate declines to about
the rate paid by banks on deposits the
trust companies are likely to call loans
and redepOsit with the banks This is
Ilkeiy TO have the effect of eXaggeratin
the tendency of the money market to-
wards plethora or stringency as the case
may be. 1t IS probable that loans are
beng transferred at present from the
trust companies to the banks, thus in
much more than the actual outstanding
credits are increased. The money market
mas not had any gold exports to reckon
with this week. Opinion differs as to
whether the export movement has ended
or IS only suspended. The Bank Of Eng
land evidently has control of the Lon
Qon market and could make an advance
IN its rates effective upon the money mar
ket, but the continental demand upon
London for gold has relaxed and Berlin
has been a free lender in London. a
continuance of this latter condition
would preclude the likelihood of further
gold exports from here. Some impor-
lance Is attached to the decision to apDlv
the loan tax of the war revenue law to
call loans on stock operations on margin
The frequent shifting of these loans and
OF the collateral and of the payment of
the tax separately on each transaction
would make the cost of such loans pro.
mbltoFY and would cut off the largest
part OF the activity in the stock mar
ket. Some of the latter selling of stocks
is attrlputed 10 this cause. The increased
nuInDeF OF railroads reporting increased
gross earnings, compared with last wear
for the first week in February has nor
been without effect en- the market Thes,a
decreases mot Increases are attributed
TO the great falling off In the grain move
IneIL GeneraI merchandise is reported
10 be well maintained. General condI-
lions OF business are not discoura cling
and the demand for all grades of iron ana
steel products is phenomenal The gem
eral undertone for the week, therefore
has showed frmness. There was a good
demand for bonds. which tended to bring
prices of many of the new or lower grade
issues towards the price level OF the high
er grade investment MORTGAGES TTniteS
States new IS advanced Is from the clos
ing price Of last week
Stocks