The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1903-04-13
AN IMPROVEMENT IN
CONDITIONS is
LOOKED FOR
Despite Inactivity Due to
Observance of Good Friday
a Steadier Undertone in
Market Has Developed
Question of Undigested
Securities Discussed.
Special to The Globe.

Special to The Globe.
NEW YORK, April 12.-Three days
of interruption to business on the
Stock Exchange, due to the observance
of Good Friday, naturally tended to in
activity. The past week, however. has
developed a steadier undertone in the
market, chiefly because monetary pros
poets have somewhat improved and
partly because most of the known
drawbacks have been well discounted.
For the next sixty days at least
money market conditions should i'm
prove. Funds will shortly begin to
return from the interior, ard the sea-
son is approaching when ordinary bus
mess demands tend to diminish rather
than increase. 1t would be folly to as
sumo that this means very easy rates
for money. On the contrary, good
rates are likely to prevail during the
remaider of the year; but loanable
funds will certainly be more abundant
after the middle OF April, and good
borrowers with satisfactory collateral
will have no difficulty in securing rea-
Sonable accommodation. This means
that one important source of pressure
on the stock market will be visibly
moderated, and prices should respond
correspondingly
Southern Pacific Controversy.
Another source of disturbance, the
Union Southern Pacific controversy has
been partially relieved by liquidation Of
the Southern Pacific pool, as we'll as by
the legal decision that Union Pacific
may vote its majority holdings in the
Southern Pacific. Even the appeal
against this decision was construed ia
Vorably, as it postpones hostilities and
Will doubtless result in sustaining the
present decision. A good deal of I'M
easiness has been felt over the North
Act hi &c will no
pealed, its effect will not be so serious
as feared; besides, the decision comes
when prices are down and will conse-
quently have less effect than if prices
We're at top level. Approximations of an
unfavorable decision have been cur
rent for many months, and had much
to do with the late decline.
A great deal has been said about I'M
digested securities. Some of the esti-
mates spread abroad are undoubtedly
exaggerated; yet it is true that the
amount of securities held at first hands
for sale is unusually heavy. 1t is also
true that large amounts of new cap
ital are awaiting issue for imperative
improvements that will prove sound
investments. These facts, however.
need cause no real concern. because the
great bulk of the 'undigested" securi-
ties are in the hands of strong men,
who are abundantly able to hold them
Not Menace.
Were these securities scattered among
q specializing public, carrying them on
weak margins, they might be consid-
cred menace; but such is not the
case, and, while the security market
has undoubtedly been suffering from
congestion, or Indigestion, as that
seems the popular term just now, there
is no legitimate cause for concern in
this quarter Many of these securities
are fairly sound and may gradually, at
some price or other, find their way into
strong boxes If national prosperity is
maintained at anything near present
level.
AS for new issues, it is probable that
these will be confined to the strongest
concerns, for the simple reason that
only such can find a market under
present conditions. 1t is safe to say
that we will see no repetition of the
reckless financing that characterized
the operations of the last three or four
years for some time to come. The pub
lie has fortunately refused to be taken
IN by visionary propositions, having
shown a much keener discrimination
than in previous ''booms."
Prices Below Top Level.
1t is reasonable to suppose that all of
these drawbacks have been amply dis
counted Dy the last three months de-
cline. Prices are now Is to 80 points
below the top level; some gilt-edge
stocks have even fallen more. Loans
have contracted nearly O,000,OO0 dur
Ing the same period. This is pretty
severe liquidation; the remarkable fact
being that it has been accomplished.
without any important financial trou-
Die or even rumors of such. The losses,
some of which were largely on paper,
have fallen chiefly upon strong inter
ests, upon those best able 10 bear them.
With the situation, therefore, proved
sound; with the general prosperity of
the country unbalanced, it certainly
seems as if the market were entitled to
FAIR reaction, now that the bad fea-
lures have been SO we'll discounted
Bank reserves should soon begin 70