The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-03-06
WEAKNESS IN STOCKS
The CAUSE is SOMETHING OF A
MYSTERY
Credits withdrawn From Stock Mar.
ket in Shape of Calling Of Loans
Forced Liquidation Steady and Prac-
tically Uninterrupted All Day.

NEW YORK, March 5.-There was
an air of mystery about the weakness
of the stock market today. Rumors
of financial embarrassment in the dry
goods world We're circulated but moth
ing definite was announced. The di-
rection of the rumors shifted several
times during the day, however, which
had the effect of diffusing the feeling
of distrust and apprehension. This
vague feeling was the most effectual
factor in the days weakness of stocks.
But the money needs developed ny
the situation had their positive infu-
ence by the withdrawal of credits from
the stock market in the shape of call
ing of loans. The prevailing tightness
of money leaves little resource for re-
placing of loans that are called.
The consequence was d dribble of
forced hquidations. This was steady
and practically uninterrupted through
out the day. The downward course Of
prices was constant, but did not make
wide jumps in the active stocks, the
recession, on the contrary, being by
successive small fractions.
Recession at Alarming Rates.
But the net result upon prices foi
the day was serious, reaching from
two to four points for more active
issues and over that for some dormant
stocks. A more notable example of
the latter was Wells Fargo, which sold
% IL points lower than last months
sale. The professional bears covered
their short contracts at different in
tervals during the day, with the eff
feet of checking the downward course,
but the rallies were slight and the
market proved to have no stamina
whatever. The last covering of the day
was no more effective than the prev
-frNrr ffrrn
and weak with some of the leading
stocks at the lowest of the day.
Even the announcement of the extra
dividend on Manhattan and the adj
vance in the yearly rate from s to
per cent was only momentarily eff
fective, either on that stock or on the
market at large. The selling came
which sold 10000 or $4,000 shares in
this market during the day. The spe-
cial weakness of the transcontinental
group led to a SuppoSition that fears
were aroused by the announcement of
the incorporation of a company alleged
to be under Gould auspices for the con-
struction of a new line to the Pacific
coast. The heavy decrease announced
yesterday in January net earnings of
Union Pacific was also assigned as an
influence.
railroad LABOR disputes
The Wabash labor dispute and strike
troubles on the Union Pacific gave vi
tally to the fears of coming labor
troubles which were a real influence
on the market. Reports of the organi-
cation of the structural steel manu-
facturerS to contest the demand for a
rise in wages increased the apprehen-
sion on this score. The further break
in cotton had a disturbing sentimental
effect on stocks, and the calls for ad-
ditional margins in that market had
the effect of increasing the pressure for
money. The rate for call loans on the
exchange ran up to 6 per cent in the
late dealings. Time loans were prac-
tically unchanged, but there was in
creasing Discrimination to put out funds
at present rates. The subtreasury
again took over half a million from
the market, bringing the loss to that
institution since Friday to over $5,-
100000. The treasury report from
Washington showed a revenue deficit
on the days total operations of $2,225,-
531, due to very heavy disbursements.
There was continued resort to foreign
lenders of money as indicated by con-
foreign exchange market. A feature of
ed States Steel 5 per cent bonds when
issued on the curb to below SO.
Bonds were weak in sympathy with
stocks. Total sales. par value, $685.
600. United States bonds were all I'M
changed on the last call.
Closing List.