The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-03-29
FIERCE SPECULATIVE GALE
SWEEPS THE STOCK MARKET.
BEAR RAID FOLLOWED BY
FRANTIC RALLY.
Notable Quieting Down Toward
the Close, and Prices Shcw
Only Small Net Changes.

New York March 2S-The stock market
was swept by speculative gale during the
two hours session to-day, of which the
quiet closing and the small net changes in
prices give little Indication. The bear par
ty made fierce onslaught on prices after
an unsteady opening, and succeeded. in dis
lodging some heavy blocks OF stocks, which
were In vulnerable position. by reason of
calls for additional margins and by stop.
loss orders placed below the market. The
Unexpected increase in reserves disclosed by
inc bank statement caused anxiety on the
part of the bears. and they bought to cover
IN an urgent manner causing a. violent
rally infprices. There was Il notable quiet
Ing down after the principal demand from
the bears had been satisfied. and the mar
ket Wavered again. but closed about steady.
although below the top prices on the rally.
There was as little specific news to explain
seemed to be based upon encouragement
over the general apathy OF the specula..
ton and the many disappointments Of
SHOW Of SUPPORT.
mere was some SHOW of support In New
York Central and Pennsylvania, and the
greatest weakness shifted TO the Pacifics
and st. Paul. Manhattan was supported
ana there was some strength among the
OF net earnings for February of Reading
and Lehigh Valley, following that for Erie
which was published yesterday. The only
expianatio offered for the higher reserves
shown by the banks in face OF an apparent
decrease Judged by the known movements
OF money. was the working of the average
vi n ua1ly increase IN
cash serves to increase the effect upon the
weekly average. The passing Of the April
l period is looked to for some relief from
the demand for money. and the liquidation
erected in stocks yesterday and to-day is
also expected to clear the situation to some
extent.
OUTLOOK CLOUDED.
The speculative outlook has been clouded
TINS week by the money situation, present
and prospective. and the result has been
neglected and sluggish stock market fol-
lowed by urgent liquidation In a few spe-
cial stocks there have been active specu-
l al. moyements based on individual
causes The violent break in the copper
market in London has had an unsettling
effect on the recent extensive speculation
In copper stocks. all over the world. and
was reflected in a sharp reaction in
Amalgamated Copper on the Stock Elk
change, with a sympathetic effect on the
whole list. The decline in that stock found
large long account in a vulnerable posi-
tion. and some heavy speculative liduida-
ton was the consequence. Some support
was forthcoming when the copper market
in London recovered. The reception ac-
corded the new Pennsylvania stock issue
was not encouraging to those who have
hoped for a stimulating effect on specula-
tion from the declaration of subscription
rights. With the market prices of the
stock at about 40 the right to subscribe to
new stock at 129 to the extent of one-third
of present holdings offers substantial
benefit to stockholders. But the prospect of
nm increase in market supply Of the stock
by. one-third and the formidable money re-
quirenlent involved in the subscription to
the new stock has resulted in active reali-
Zaton in Pennsylvania. The subscriptions
to the new stock will require the use Of
some SOS, 900 900. of which half will be pay
aple IN June. one-quarter in October and
year
The effect on the stock market Of this
proposition is very significant of the feeling
or anxiety over the very large offerings of
seems to have been some buying of sub
scription rights to the new stock against
The sales of the old stock on the exchange,
but the fact remains that efforts were ur-
gent, to find quick market for the large
supply of new stock impending. or to find
resources for taking it up by liquidation of
been held at a high level in the expecth-
ton of benefits to accrue by new stock
subscription rights have been an influence
alton and every new demand for increase
of wages intensifies the fear that the result
ing increase in operating expenses will az
RAILROAD EARNINGS.
Inc reports OF net earnings OF railroads
Tor tpr, Re February do not show sufficient in
to relieve this. apprehension. With these
ret returns in hand little effect is produced by
enc e 9 2Ff sS in earnings
precedented volume of traffic and conses-
ton of freight from various quarters.
pr9!ees so for outlay for terminal
yolving further absorption of capital are
the sequence OF this condition.
Attention is attracted by complaints Of the
practical breakdown of motive power on
some railroads as being responsible in part
Tor the blockade of freight. Such a condi-
the striking. economies of operation which
have been effected of late years by railroads
nave been at the expense of too heavy 4
cheney 10 be properly maintained The dra n
upon New York bank reserves has con-
iinued during the. week: The subtreasury
cd fr HrN 10
haR million was shipped 10 Buenos
Ayres Inc London market has been dis
turbed, like our own. by the stringency of
money and n1 the requirement in prospect for
the $50 100000 Transvaal loan. The decision
of the Secretary of the Treasury to refund
$loo@o'o0o of short-term Government and
per cent bonds into consols per cent
caused momentary recovery of a point in
a few prominent stocks in the market hut
han so sell The ba ass
note circulation provided by the new supply
OF per cents seems not to be taken ac-
ditional circulation is not available for
banking reserve and provides no basis for
expansion Of 3o cr9di; S,z,->n,n,
me cash payment of the premium on the
refunded bonds would indeed increase the
cash supply. but the amount is SO moderate
to appeal little to the present discouraged
sentiment in Wall street over money af-
fairs fairs The contestlbetween the Hartman &
been in allegiance during the week. but the
working out of the struggle is still to be
met and the prospect serves to help the
repression of operations in the market. The
decision Of the Governments suit against
the, Northern Securities Company BY
United States Judge is another event over
hanging the market. although an appeal to
tho Supreme Court is taken for granted.
The undertaking reports of prosperous trade
conditions seem to be entirely without in
iuence upon sentiment. The opening of the
navigation on the lakes is looked forward
to hopefully to help unlock the accumula-
ton of grain at interior centers and start
IL abroad. with resulting release of funds
tied up in holding charges and n replenish-
ment of the supply Of foreign exchange
The market for bonds has been dull and
the movement of prices irregular. Tho
United States old As advanced ~ per cent
and the new As Y per cent and the So regis
tered and 6s Il per cent. The 2s refundins
registered declined / and the % 1 per cent,
as compared with the closing call o. last
week.
Wall street Gossip.