The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-07-19
TRADING IN WALL STREET
CONTINUES PROFESSIONAL
TONE OF MARKET DOUBTFUL
AND HESITATING.
Momentary Rally After Bank
Statement Appears, but Relapse
Follows and Close Is Dull.

stock market was dul! and professional The
tone of the narrow speculation showed SEN
tIment very doubtful and hesitating. Stocks
were sold early In the day on the assu-np-
ton that yesterdays upward movement had
discounted a favorable bank statement. so
that no further rise could be expected after
Its publication. There wSs a monetary
rally when the statement appeared but the
selling was renewed and prices receded to
q level substantially below last night. clos
ing duh and heavy without any rally. The
gain in cash was almost twice as much -
mad been anti ipated. hut the small loan
contraction disappointment in lew OF
the heavy liquidation in the stock market
II was hoped that the large proportion Ok
the weeks railroad corporation loans which
were abroad. and the fact that the PenTS;l-
its SiN-mOnths notes would result in Il SUB
stantial contraction of loan obligations. Tho
fact that the decrease only amounts to
S:.5l3.Jp gave rise to a suppositiOn that the
banks have been putting out some renewed
loans on u large scale TO private individuals
with the proceeds of the weeks liquidation.
Pressure upon Amalgamatei Copper WIS
renewed, and its decline of nearly two
points, the weakness OF s.. Paul and Il
bad impression on sentiment Rock Island
was, again forced down to yesterdays low
level. New York Central was supported
and recovered one-pOint decline.
SHARP RALLIES.
The Toledo, St Louis and Western stoci,s
made sharp rallies from yesterdays violent
breaks. There were large belated declines
in some of the inactive stocks which had
not yet been traded in during the late
period Of reaction. The encouraging views
of the business situation expressed by the
weekly commercial reviews and tire large
percentage OF increase IN gross earnings
of railroads according to latest reports
were ignored in the trading. Heavy iqui-
cation In the stock market has been in
progress during the week: without any do
velopments In the general business and tn
dustrial situation to adequately account
for it. The weakness which developed last
week In New York Central on the assump-
ton that It's needs for funds must be met
by some new capital issues. with the dam
ger Of a repetition OF the experience met in
the fotation OF the new Pennsylvania
stock issue. spread generally throughout
the list as 1t became known that various
railroad corporations had similar needs Cor
funds. which they were supplying BY tenn
porary loans. being high rates Of interest.
rather than attempt to sell securities at
sacrifice in the present unfavorable market.
This was not strictly new situation. as II
has been known for some time that ths
roads sharing in the new control OF Hook
ing Valley had given their notes on per
cent basis. The extension OF maturing
service bond of the Burlington for two
years on a per cent basis was also plain
symptom Of the dissemination of railroad
corporations to attempt any largo new
Issues at this time.
MARKET contested.
The violent decline in Pennsylvania shares
In connection with the next issue OF stock
was conclusive demonstration of tho un-
fit condition of the market to absorb new
issues. even Of high grade. and the conges-
ton Of newer Industrial issues in the mar
ket had been notorious for months. Never
theless. acute uneasiness over the money
caused By e sss the sur
lington had borrowed 100000 until next
March. and the Union Pacific $1,000. 900 for
Many rumors thereupcn became current OF
large prospective borrowings by various
railroads and Of the consequent heavy In
market took on a tone of Generalization on
Wednesday. and grave fears began to be felt
Of the consequences Of the uninterested
entail bankers in the Clearinghouse As.
ISOLATION took council among themselves
and allowed 1t to become Known that care
full investigation had assured them Of tho
eoundness of the banking situation and tho
safety of the position of all city banks and
trust companies, so far as they could ascer-
tain
The bankers were averse to making for
NAL announcement Of the result OF such an
able inferences sH might i DO drawn from its
being thought necessary to take such steps.
But the ground for confidence resulting
from the canvass was commonly known In
the financial district and had a notable ef-
feet in reassuring sentiment
EXCHANGE MARKET.
Another fact that had a strong effect in
restoring confidence was the shaTp response
of the foreign exchange market to the rise
in the domestic money market. The strength
which has been maintained in the exchange
market, and the sustained outward move
Of ssd an y anS 8 as S:1 S: ca IN
tons of distrust on the part Of foreign capi-
tai. which gave small hope OF relief for do
Thursday there was precipitate break In
foreign exchange. which transferred the sit
uation from one OF apprehension OF further
be brought in on occasion of need. Foreign
banking houses offered large sums OF money
in the New York market 1t was learned
cific and the Burlington loans had been tax
en- by foreign capitalists.
The buying Of stocks In the New York
market for foreign account WAS also said
to be on liberal scale. although this move
ment was more obscure. as the decline In
prices here had been SO much more rapid
transactions. sales In London being covered
here at the decline. The rally in the stock
market. which resulted in the latter part
of the week. wiped out large portion Of
the earlier losses and some Of the active
stocks were lifted above last Saturdays
level Some OF the most sensational move
vestment stocks which are seldom traded
in. Some of these broke scores Of points
on few or on single transactions. Such
operators may be accounted az showing
limited amount of the sales and the quick
recovery in such stocks on the purchase OF
equally small amounts precludes the idea
Of any general liquidation going on in thsso
properties or any unfavorable Developments
regarding the properties themselves,
TENDENCY LOWER.
Tho marking down of market prices Of
the high grade investment stocks and OF
mortgage bonds Is a clear intimation Of the
general tendency to adjust prices to tho
new interest basis With the prospect OF
per cent interest rates for an indefinite
period there is little inducement to hold Sc
curities on a 3i2 or per cent basis. That
there has been liquidation Of securities by
ploying funds in the open money market
is commonly assumed in Wall street.
The needs of individual capitalists to
meet obligations on underwritings and to
protect property interests in need of work
ing capital are obvious in some couspicu-
Gus cases, are commonly inferred In others
and are rumOred with all degrees of lelia-
bility and unreliability in others: Wall
come of the corn crop on account Of its
lateness and the settlement Of the basis for
the coming years business in iron and
steel is eagerly studied. Gut there Is little
of the weeks settlement II, the stock mar
ket to be traced to Influences from the out
SIDE business world. Reports Of railroad
earnnss and Of current raisoad traffic arc
loans and the rise in interest rates with
the resulting liquidation of marketable Sc
curities are accepted as evidence OF the I'M
some of them unsound. some Of them over
capitalized, some of them in too rapid an
anticipation OF future growth and some Of
them for necessary improvements and bet
terments to accommodate present business,
but the capital needs for which had not
been sufficiently allowed for.
The bond market was also weak. with
some recovery in sympathy with stocks
States bonds unchanged