The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1902-07-20
EFFORT TO TAKE PROFITS
BRINGS DECLINE IN STOCKS.
MOVEMENT CONTINUES AND
RALLY COMES LATER.
Professional Spectators Trying
Hard to Interest the Gen
eral Public"

eral Public
New York. July is.-Former BUYERS Of
stocks attempted to take profits this morn
ing and found 4 poor market for the pur-
pose. with the result that prices were
carried generally below last nights level
in the course OF the first hours trading.
The market. however. continued to show
breadth and variety and the pressure TO
sell promptly relaxed at the lower level OF
prices. A favorable bank statement was
expected. but the exhibit of the clearing
house Institutions proved more favorable
than had been anticipated. and resulted in
an effective rally I'm prices. The realizing
was renewed at the advance. and the clos
ing was active and easy. Probably the re-
ports OF yesterdays heavy rains and Hoods
In the Western States aroused some misg!N-
Ing over the results TO gram There were
| fractional advances among the Erangers
and Southwesierns nevertheless. PennsyI-
vania was the feature Of the market On
very large dealings. and rose above IT,.
Z closing AT that inquire. Official drnials OF
yesterdays persistent reports that control
uf Reading had been secured did not hnrt
the stock. but its subsidiary stocks. Chesa-
suffered from realizing. the former falling
1T one time IL under last night.
SrOnE Spots In the Market.
There were strong spots through the mar
ket. including Hooking Valley. Western
Union. Fuller Construction and some OF the
public utilities of this and other cites.
me inCrpaSa IN banking reserves Was not as
large as expected.
Last weeks decrease Was much smaller
than expected. - that tc-dHy's figures prob
ably represent An adjustment under TIE
average system. The decrease ia loans.
considering the active speculation. was not
looked for The diminished reserve REQ are
mCnIs thus effected helped the surplus.
when Increased rs the substantial amount
OF S.iS2.S15. There has. been notable re-
nHHNsuH - FnNsa AssFfEfTNH Fn ThA GfnHk
market this week. 50 that the volume OF
dealings crossed the million-share mark for
THURSDAY and FRIDAY. There have been
indications of a strong organized campaign.
including some Of the great financial groups
which nave hitherto seemed to hOlu aluOf
from the market during the operations con-
Quoted by the SO-caiied Western contingent
Dealings have beel ia great variety. SHIFT
ing from one TO another group OF stocks
successfully. takinG profits IN the one group
under cover OF the ~ mpathetic strength
induced by the rise Of prices a the new
group. The movement II regarded As being
professional still to 4 large extent. That Is
10 say. as being conducted uy the large !
capitalists and millionair-s. who have CON
trolling interest IN great corporation ard by
the traders whose means of livelihood IS
the buying and selling OF securities.
Effort to Interest Outsiders.
The history OF speculative movements
shows that the general public never IN |
bark IN a general speculation except under |
n leadership Of this character. Even with !
abundant resources I'm hand. with know ,
edge OF effective earning power for seCuri-
ties. with obviously prosperous conditions /
ON al hands, there IS rarely any disposition
manifested by outsiders" 10 buy stocks /
while prices are stationary. and there i no
EVIDENCE that persons are seeking 20 pos
When dealing in stocks become large ana !
prices begin To advance. then comes into
play that invincihls propensity OF the
human mind TO seek possession oI that
which others are urgently seeking. II Is
sGch a condition which speculative Leaders |
strive to produce uy active dealings i'm the
lwNTknf- I'D ThHa IfNH FM= nm ~ vrFL- - ~ 4
sudden and striking d manner as possible.
II the last week the commission houses
mand from scattered sources. but not to
an important extent. The bulk OF the
transactions are sti!l in the hands OF the
lS"IeSSlunals- The report during the week
hat the corner in the July corn option at
chicago had been abandoned. and the break
IN the price were regarded with Sat,Sfar-
lion in Wall street circles. owins To the fear
that the artificial conditions SouCht To H..
maintained would do harm TO the market
Ing OF the corn crop and that the Effort To
support the corn market might nsrrSs!tat-
sacrifices IN the stock market. The Sus-
uiCion that a sequel still remains To the
uH this scsr-.
Iron Trade at Record Mark.
An trade reports agree that the demand
Tor an grades OF iron Product IL sIm ~
.lsh Walter mark and running into the in
definite future. without the FIRST iudication
u reaction. These tw" basis facts. plrr-
ninl crops ana act Ve iron trade have been
accepted usually In The past a. conclusive
indications Of the country prosperity. he
ports Of railroad earnings continue Il, show
increases over last years unprec-dEn;.rI
level ana cUrrobo. ate other evidences OF
prosperity. including The largest volume Of
bank ci~3rings the country over.
The unusually early demand from the In
terror TO- currency. which caused some
last week ON account OF the dan
S"I OF us encrnaChment upon New FORK
rank reserves. * aCcepte IN another sense
a. indicating ,he activity OF trade.
Inc losses suffered by the anthracite
cual carriers IS a result OF the miners
strike max" them an exception To- the in
creased earning power Of Railroads In gen
erai. but the determination of the miners
IN convention at indianapolis not 10 make
the strike general has been an opportunity
feature Of the bull market Ct the week.
The confidence expressed by Coal-ruad Of
ncials that the strike is near IN end has
apparently been accepted 10y the SpscHla-
tive contingent. The afiidavits offered by
| nited States Steel otfic' ais In answer 10
the suit against the proposed bond issued
regarding the earning power of the cor
pcratiOu were regarded as gratifying evil
dcnce OF the prosperous conditions of the
trade. but the corporation securities were
but slightly affected. The rates for call
loans have been easier this week and have
fosteTed the speculation that the future Of
the money market Is by no means clear
and lenders hold firmly for higher rates
on time loans The unexpected volume OF
the Governments disbursements has been
a relief to the money market. but II is by
no means certain that the present rate Of
disbursement will he maintained. The
question OF the extent OF the foreign In
debtednsss of this market is much can
vassed; but with no definite result be-
yond the general agreement that our noat-
ing Indebtedness abroad Is unusually
large and its liquidation much dependent
upon the volume of our exports CT domes-
tic products this fall. Some observers have
claimed to detect a disposition OF French
TO which this markets largest in
is due to invest in the American
securities. but investigation in the chan
neis In New York through which invest
ment would float fail to corroborate this
view.
The principal activity in the bond mar
has been speculative and convertible
bonds in sympathy with their ~interchsng-
able stocks. United States IS declined \
per cent. the olds As . and the Tefunding
D and 3S 4 usr cent on call this week.