The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-07-27
DEMAND IS LANGUID
SELLING NOT WELL ENOUGH AB-
soRBED TO PREVENT A DE-
Ginning TENDENCY
INFLUENCE OF ROCK ISLAND
PLAN OF CONVERSION

Some Uneasiness Felt Over the Future OF
the Money NEUTRALITY-SUSPICIOUS. De-
gree of Animation Exhibited During the
Week-Operations Thought Due to a
Pool.
NEW YORK, July 26.-Th.se were va
riouS points of strength in today's stock
market, the first hour of the trading
showing much the same character as that
of the week just closing. The demand,
however, was languid, and the selling in
duced by the statement of conditions of
the banks was not well enough absorbed
to prevent declining tendency. AS a
result the closing was easy and repre-
scented net losses in the majority of
cases.
Rock Island was affected anew by the
plan for the conversion of it's securities
and the notable strength of the ST. Louis
y San Francisco stocks. Kansas City,
Fort Scott & Memphis and Chicago 81
Eastern Illinois was due to hopes that
those properties would be included in the
new project. The~defiE'Se formation of
this plan gave fresh credeNce to rumors
OF many other financial PROJECTS which
have fallen out Of public attention for
some time after active discussion, but
the lack OF active interest in the market,
incident to the short session and the alb
Sence In the country of many active OPP
orators left these factors ineffective to
hold up prices. The bank statement
r.
200, which is nearly $1,000, 900 in excess
of expectation, but this, with loan ex-
pansion of SO, 967, 200, resulted in an in
crease in deposits of 81, 400, 300 which
increases the requirement of the legal re-
serve by 1881. 075. AS the cash increase
falls short of this by $685. 875, the surplus
reserve is encroached upon to that ex-
tent.
The disclosure that the needs, of active
speculation are absorbing the increase in
available resources and the prospect that
90 hill Ia
the government revenues have begun to
take up a daily surplus, caused some
uneasiness over the course of the money
market, with a continuance of the spec
ulatiOn.
Through the Week.
The stock market has shown a degree
OF animation this week which is extraor-
binary, measured by the standards exist
ing before the speculative era of last
year. The average of the daily dealings
has run near to 100000 shares of
stocks. The market has presented the
usual lrrregularity caused by the shifting
speculation of bull movement, due to
occasional profit taking where there have
been extended advances side by side with
animated buying in new quarters of the
market On Thursday the selling tenden-
cy became more general. but there We're
perslsting points of marked strength
even then.
The prevailing opinion in Wall street
IS that the bulk of the operations is still
due to pools of millionaire SPECTATORS
intent upon turn in price and a quick
sale to realize profits. But it is obvious
tnat there have been large acceSsionS to
the ranks of this class of operators over
the number that We're responsible for the
earlier stages of the movement, and indi-
cations have not been wanting that the
great Financial powers of the country
have had a hand in the dealing, and
growing outside following from the coun-
try at large has been attracted to the
market The bull movement has as its
basis the general agreement OF all signs
IN showing prosperous conditions in the
country and in promising continuance
OF these conditions as long as the range
OF vision can perceive the future.
Confidence in Crops. nj
Growing confidence is felt that the
years crops will be abundant. No signs
are seen of an interruption to the actives
demand in the iron trade. Railroad earn
ings still show increases over last years
profitable level The present losing con-
dltIon of the anthracite trade, due to the
strike, is drawback, but in the pres
sent sanguine mood of the speculative
temper, it is felt that these losses can
be made up in improved conditions it is
hoped to establish when the controversy
is finally settled.
The week has brought out in addition
a cloud OF suggestions and rumors run
nlng all the way from street tips" to
well formulated reports with color of
authority of new arrangements and COM
blnatlonS among the railroad powers and
Of congratulations and consultations.
still higher than the high level already
attained in the attempt to discount the
promise of the coming years prosperity
Among these may be mentioned an alb
sorption Of control of st. Paul by Union
Pacific; the perfecting of the iong-exl
pected plan of consolidation of the Van
derollts; an agreement for new division
of territory and control among Eastern
trunk lines incident to the Atlantic OUT
let for the Gould system; the coming
formation of securities holding com
dat of Nf
the North and South trunk lines; a re-
organization and extension of the Rock
Island system, and others narrower in
their scope, and which were given less
attention. None of these has received
formal official authority.
Average Level Lifted.
The average level of prices of railroad
stocks has been lifted this week in con-
sequence to the highest level in a gem
Grafton, so that the rate of return on in
vestment at the present dividend rates
has been reduced to less than 3 per cent
on the prominent railroad stocks with an
established dividend record the country
over. Prices of stocks are higher relative-
!y than bonds. 1t is noticeable also that
the Investment demand for bonds is lam
guild Taking the average price of TWEEN
ty representative railroad stocks. the fig
ure reached this week was 1868. Aver
age pre- OF the same stocks on May l
last year, the highest touched before
the stock market panic, was 1880.
A comparison of prices of twelve repre-
sentative lndustrials shows how predom-
inant has been the demand for railroad
stocks. Twelve industrials, which reach
ed an average price this week of Sc So
touched IS SO and the high level before
the panic. The same stocks in the spring
OF 1899, at the period of wholesale f1ota-
ton Of industrials, touched an average
OF 1851, while the twenty representative
railroad stocks were at IS. 3d.
The ease of call money this week has
been fostering influence upon the spec
ulation. and the. export of 50, 100000 in
gold has not affected the local money
rates. There has been mr6l discussion,
however, of the probable extent of the
gold exports, the amount of our foreign
Indebtedness maturing this fall during the
usual export period for our domestic prod
ey market. Selling of stocks here for.
London account and the preparations in
Paris for the coming conversion of 31h
per cent rentes into per cents are be-
leved to have precipitated the gold ex-
ports.
What Demands Depend Upon.
!, Future demands are dependent upon
the volume of our domestic exports as d
source of supply for foreign exchange.
government fiscal operations have con-
served the ease of the money market
The government revenues for the month
have run less than ST. 600 900 under those
OF last year, the. decrease in internal rev
enue being more than half offset by in
crease in customs revenues, but the gov
eminent expenditures thus far this month
are $5,000 900 In excess of those of last
year. The government deficit. which
reached over ST., 1000, 000 at one time this
week, has decreased during the latter
part of the week, and the government
rate OF disbursement will not apparently
be kept up.
Comparing with last year. 1t is to be
borne In mind that the government paid
out In redemption of it's bonds and pay
OF last calendar year the sum of $55.-
87,414. while the bond redemption offer