The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1902-08-30
STOCK MARKET BROADER,
THOUGH MONEY Is HIGHER.
TREASURY'S PLAN FOR RE-
LIEF IS AN INFLUENCE,
Average of Prices Has Advanced,
but Movement Has Been De-
cidedly Uneven.

cldedly Uneven.
New York, Aug. 22.-After considerable re-
vival of confidence indicated in to-day's
stock market and in the final dealings, the
market brcadened out into animation and
strength. THIS was in face of a rise in the
caIl-ioan rate to > per cent. and a forecast
OF the bank statement indicating a cut in
the reserves Of nearly 5000, 900. The imme-
dlate prospect in the money market seemed
10 be overlooked on account of the reports
OF the comprehensive plan said to be fa-
vored by the Secretary Of the Treasury for
the expansion of the note circulation Of the
pahks. by which 1t IS hoped to relieve the
demand upon the lawful money reserve for
use IN the circulation incident to the crop
moving period. 1t Will be remembered that
the o1er of Secretary Gage to redeem bonds
made IN April OF last year had resulted up
to the LIST of January OF the present year in
the redemption OF Government bonds TO the
par value of $jS,222,l $50, and in the payment
to the money market, including premiums,
gal. i44.oi2. These disbursements were an
IMPORTANT influence in maintaining the
tranquility of the money market last fail,
put the Governments standing offer proved
SO attractive that the banks began to sell
bonds and retire their circulation in the
spring as rapidly as the law would allow.
Secretary Shaw withdraw Offer.
- AAC IA BOoC VI AiI
Dond redemptIonS. so that Secretary Shaw
WlthdreW the offer early in March. His eff
lorJS 70 stimulate the note expansion are
evidently due to i recollection of the con-
ditlons thus caused by the redemption of
government bonds. Prices of the bonds
have declined materially since the with
draWal OF the Governments redemption
oroeF- Ihey have risen again since the
note expansion plan was discussed. and to-
gay me bid prices of the As of 1925 jumped
10 per cent, indicating the scanty floating
supply and the difficulties of bank-note ex-
pahslon: The encouraging effect upon seLti-
ment of the discussion of this project was
supplemented by the belief that the lam
guage of the circular issued by the South
eFn railway voting trustees could be ac-
cepted as indicating the incubation of the
project for a Southern railroad merger.
There were the usual rumors also of an
early settlement of the anthracite strike.
The buying of Union Pacific was attributed
TO the desire on the part of insiders TO en-
courage conversion of bonds into stock.
There were some points of irregularity in
Sharply. American Bicycle securities, in
Guiding the bonds upon which action on the
interest Is expected on Monday, were nOta-
DIy weak. The selling was accompanied Dy
reports that 1t was due to liquidation in
duced by the coming retirement of a lead
ing interest. Atchison and Canadian Pa
strength. and there were gains of a point
or more by many less active stocks. The
stocks. Total sales, par value, SS,159,000.
Average Price Level Advances.
The average level prices for stocks has
advanced this week. but a detailed inspec-
ton of the changes shows them to have
been very uneven. \ powerful and infuen-
tial speculative combination has made deter
mined efforts to advance prices. and to
awaken a general speculative interest in
the market. This method was to concen-
trate the buying and manipulation on one
stock or small group of stocks at a time,
proceeding from one TO another on each
successive day. On each day of the week
the business IN some one stock has ULita
overshadowed the rest of the market. Fol-
lowing the advance, there. was in each
case heavy realizing, which carried the
price back. while a new point of strength
was developing. These movements had no
specific new development to account for
them, and the campaign was avowedly
based on the general promise of prosperous
conditions for the country for the coming
year by reason of abundant crops and undi-
minished business activity. The movement
encountered several obstacles during the
week. but the market offered good resist
ance to the various reactions. as good buy
Ing. demand developed in the course of the
declines.
SOlicitude Over Money Situation.
Much solicitude was expressed at various
times over the capacity of the money mar
ket to carry the speculative campaign
through the period Of expansion in the
needs of the circulation. the heavy move
lnent of funds to the interior reinforcing
this feeling. The speculative leaders,, how
ever. professed confidence in the capacity OF
the money supply. and the call money rate,
by its stability. helped to bear them out.
1t was obvious, however, that the rising
prices were taken advantage of at all
stages to effect very heavy realizing on the
part of the previous speculative buyers. An
impression was prevalent that the heavy
were resulting in the transfer of
from stronger to weaker hands. !
It so happened that two of the untoward
developments of the week came in the
midst of heavy speculation in the stocks
Immediately affected. The reduction of the
on Reading first preferred came
while Reading was hpinp bought Ga pprIu in |
one to 5000 blocks. with the natural result ]
Of heavy unloading by disguised specula- I
The active advance in Atchison, also. was
checked by the publication of the report
of net earnings for july. showing a heavy
compared with last year. but the
quick relaxation of the heavy selling press
ure was very notable in these stocks, as in
buyers apparently standing ready
The conditions which cause this tendency
have light thrown on them by the circular
sent to stockholders by the Southern Rail-
way voting trustees. explaining their action
In deferring the declaration of the divi-
dend on the preferred stock, which would
in the dissolution If the voting trust.
Danger of Sale fin Open Market.
1.-The results of the past eighteen months"
the trustees. in connection with rail-
Dad properties, have revealed danger to
which corporate properties are exposed, of
he control of their stock being bought up
n the open market by purchasers not iden-
flied with the property or permanently in
crested in its development and improve
nent" In other words. it is desired to
void n repetition of the Northern Pacific
nd the Louisville experiences. The same
hing obviously applies to the Reading, in
which the declaration of the full dividend
would also have dissolved the voting trust.
The fact that 1t IS considered necessary TO
xtend the voting trusts in order to con-
inue the present control of these properties
be constructed as admission that the
resent actual ownership is not sufficient
o accomplish this. 1t may also Indicate
an unwillingness to tie up the large
of capital which would be necessary to
ontrol by ownership. and which is known
0 have proved irkSome in the case of other
ighly significant of the urgent demand
Kelly to spring up from one cause or an
ther, some times purely speculative. and
D attain sufficient proportions to achieve
he actual absorption of the control of some
I the largest railroad systems. The high
at which prices are held is due TO the
anne feeling, in addition to the confidence
-hiCh may be felt in the actual earning
t present price levels, for which the reason
not clear in many cases.
Looking to Treasury Department.
In the money market problem. interest
as c%entered this week upon the question &,
( what substitute will be offered This au-
Imn for the relief that has been afforded
y the Treasury Departments measures for
years. The Government refunding
iW. with the bank note expansion included !
rye increases Of deposits in funds in Ma
onal banks, purchase and retirement OF
ondS by the Government have all been re-
orted to, until II is believed the available !
lpply OF Government bonds has been swept i
rom the market, or reduced to such small
that only considerable demands {
ITS the price to a point where it Is I'M D
TO use them either as security for =
circulation or for Government depos- z
s. The large growth in the Government =
acHlDtS from customs iS nTnVinD sufficient G