The sun., 1903-05-24
FINANCIAL AND COMMERCIAL.
SATURDAY, May 2.

SATURDAY, May 2S.
The fears generally entertained yester-
day by unbiased observers OF the stock
market that the rally in prices which was
then In progress would be of short duration
were to-day proved TO be well founded.
Liquidation in the market was resumed,
and before the close of business all OF the
sain made by quotations in the last two
DAYS was lost. Nearly every stock that Is
at all active sold down to the lowest figures
seen In a twelvemonth, and some OF the
most prominent stocks, notably St. Paul,
sold below this record. The announce
ment of the formation OF an underwriting
syndicate to take care Of the Pennsylvania
R,ilr oad's & new 500. 600 900 stock issue, which
was relied upon to stimulate the markell
has fallen fiat. Comment upon the matter,
so far as Its influence In the speculative
world Ia concerned is indeed, generally
uniavorable 1t Is admitted that the suo-
cess Of the stock issue Is now assured al
though, of course, all Of the new stock
taken by the underwriting syndicate Will
be sold AZ fast as the market can take 1t,
and the most that can be hoped for regard
ing the price of the Pennsylvania shares
il that It will not greatly recede. The es-
sence Of tho transaction is. however, that
TO call for help In their financing. They
have pressed their stockholders too far in
the matter Of stock and convertible bond
issues and the like, and It is seen that in
vestors and spectators all over the country
are far less disposed to buy securities than
even many adverse critics of the financial
situation had supposed
The Pennsylvania shares were not weaker
to-day than many others in the general
list, and the force Of the selling movement
converged upon ST. Paul and United
States Steel ST Paul sold at 15l, as against
1856 at one time Yesterday, while the Steel
stocks lost ~ points. That the very great
weakness of st. Paul is due to selling from
a single source and that It represents liqui-
dation and not bear operations Ia the gem
eral opinion In Wall Street; but the reason
for the movement still remains a mystery.
As good deal of the selling Of the stock
since the quotations for II touched l6a has
proceeded from large commission house
which was heavy buyer OF the security
at prices ranging from 40 to 1876. a theory
held BY many is that some large speculative
interest has been throwing over holdings
on which heavy loss had accumulated
But II any such amount Of st. Paul as has
been sold In the last two weeks has been
held in recent years speculatively by any
pool or individual. Wall Street has never
been informed of the fact. Some critics
incline to the opinion that the decline in
the price of st. Paul portends reduction
next fall in the company's dividend rate.
They hold that the controlling interests
in the company never intended to pay
moro than 8 per cent. upon the common
stock and that they only authorized a
per cent. rate TO keep the stock from
passing into the hands Of outsiders who
were endeavoring to acquire it. But this
theory also has many flaws. One thing
is certain, that until the great majority OF
those who have to do professionally with |
the stock market are convinced that the |
decline in ST. Paul is over their operations |
on the buying side of the market will be |
small.
For the weakness in the Steel shares no |
reason was accorded save rumors that /!
another large out in tho price Of pig iron |
was impending and that a reduction in the |
price of various steel products was not |
far away From the fact that the Steel |
stocks are held so widely for investment |
a fall In their price is always regarded as !
one OF the most unfavorable market in |
huences possible. The labor situation.
too at the weeks end was not considered !
encouraging. In some parts Of the country |
It seems to be better. and in other parts, !
notably Chicago. it is obviously worse. |
A general railroad freight handlers strike |
is threatened in Chicago, while the hopes |
entertained little while ago of An amicable |
settlement OF the dispute between the EN- |
ployers in the building trade in our own |
city and their men have been dissipated, |
and 1t looks now as if great contest be- |
tween capital and labor had been begun |
in this matter. While investment Wall !
Street is not alarmed over what has hap. |
the stand taken by tho employers, specu- |
lative Wall Street does not like It, and the |
affair from a strictly stock market point |
of view must be reckoned as factor making |
for lower prices. To-day's bank state
ment was, II not very favorable, at least !
more favorable than many OF Its i'm me- |
diate predecessors. For the first time in |
several weeks decrease in the loans,
amounting to nearly IS 500 900. was shown. |
Deposits decreased in the same ratio, while |
cash decreased 81 1925, 900. and the surplus |
reserve. therefore, remained practically |
unchanged. Two million two hundred |
tina on Monday, but gold exports to Europe |
are regarded under present circumstances |
as extremely doubtful.
>Rsw Yerk atsck Exchange Sales, May 23.
CLOSING rato.s q, rsrrso .sArss sssss
usmr o" Asked usn. BID ~'s'A
1850 " 1904. loeN ,sas,..lssA lse
H. G. lUSls O.