The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-03-30
REVIEW OF THE WEEK
IN new YORK MARKET.
REPUBLIC SPECIAL.

REPUBLIC SPECIAL
New York. March 2s.-The process OF
Strengthening bank resources. during which
operation security prices have suffered
verely. continued practically without inter-
ruption during the week. The work was
conducted upon very extensive sale and
appears to have been very thoroughly per-
formed. Since the movement began some
weeks ago the loans Of the New York as
ISOLATED banks have contracted no less than
SIC G00.0 oe. and the surplus reserve has been
REINFORCED until 1t now stands at the re-
spectacle figure OF S. 2s1,gV.
This is a distinct Improvement from the
conditions prevailing three weeks ago ard
as result the monetary situation of the
The April settlements probably will now BE-
effected without further serious dersnge-
ment The future is By no means
ing from the monetary situation ia rapidly
passing away. \ corner, as 1t were, has
been turned in the money market; Fur
Their liquidation would facilitate the i'm
provement the more. but the liquidation
which has already taken place may he
found sufficient for the present, provided no
The shape of renewed corporation borrow
ing. or through speculative movement for
the advance; This latter is highly unlikels
observation Of Wall street that equi-
litrium in the monetary situation
has heen accomplished this time with
Of cash holdings by the hanks and OF prices
Of some Of the hish-gra,ie Securities One
OF OF me notable 40, f.saures OF the wesi,
world has. in fact been the sacrifice in the
prices OF the best Issues.
British consois and French rentes abroad
have yielded in fashion more suggestive
of purely speculative counters than CT the
highest grade investment issues. Pennsyi.
stock In the locei market nave plunged
down 4 10 Z points while stocks of problem
siical value have been rather well sus-
The selling of good to take care of poor
securities is ever feature of q market un-
der the pressure Of Iiauidatiop. II I. quite
ind any purchaser: at all. IT. the present
POOR securitie. Of the general let ' when len
Were being protected st the expense OF the
hish-grade stocks and bonds. Loans
of unsuccessful Rotations, require protec-
lion from time TO time. Liquidation has
been severe and temporarily better condi
tons result therefrom. but the csu.e which
chiefly Influenced selling has not been re-
moved. and more will be heard OF 1t later
Short selling and plenty of It has gone
hand in hand with the liquidation but 1t
has not been the bears alone who have
cessful drive against the short interest per-
manently re-establish the high level of
prices. Wall street is dealing with liqui-
dating market. induced not by business or
industrial conditions but by the enormous
capital creations and corporations borrow
ing: vast sums Of which are not even yet
in the form Of funded issues
Without doubt the most important deveI-
opment Of the financial week was the re-
sumption Of refunding operations upon the
part Of the Government. As TO its success
or failure, opinions widely differ, but as TO
that feature Of the case the Secretary OF the
Treasury is not responsible.
With such limited resources as Mr.. Shaw
now has al his command to relieve none
;ary conditions, he has done what he has
for the best. The Secretary is probably
looking more to the future than the pres
ent: II the entire SEC, 100000 Of per cents
OF 1907 and per cents Of 1908 are converted
into consolidated Is of 1880. only some
S5.0o5.0O0 currency will be released to the
public In the adjustment of premiums hut
TIE 100000 600 2-per-cent bonds will. IL the
plan carries through. provide for additional
circulation and for security for public
money. obtained without further violation
of the law.