The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-07-12
STOCK MARKET SUBJECTED
TO SELLING PRESSURE.
ATTACK ON PRICES PLAINLY
PROFESSIONAL.
New York Central Leads the De-
cline-Money Conditions
Disturbing.

again subjected to Geyere selling pressure
to-day under the impulse of the same mo-
tives prompted the selling for the
two days previous. The pressure upon New
York Central was the most conspicuous
feature of the market and carried the price
down to 114A, an extreme decline from yes
terday of AZ and from last week of 1ia4
The attack on the market was obviously
in professional hands. but it was equally
evident that the bear tactics were based
on knowledge or conviction of the existence
of large orders to liquidate in the market.
Beyond the mistaken conviction of the ne
cessty of an early increase in New York
Central capital issues there was no impor-
tant news to account fo- TIE general de-
cline, and it seemed to be bas1d rs much
as anything Il general belief that a
REIMBURSEMENT of the price level of securities
must be made to conform to the new condi-
tons in the money market and industrial
affairs before any real demand for securi-
ties can be attracted.
RENEWED WEAKNESS.
The renewed weakness of Pennsylvania
and its break through the previously pro-
tected minimum at 123 to 1915 had almost
as much effect on speculative sentiment as
the slump in New York Central St Paul's
drop to 14ii2 was of almost equal influence.
These stocks as well Southern Pacific
and Amalgamated broke through their pre-
vious low levels for the year and thus be-
gan the uncoverng of fresh stoo-loss or
ders. which had been pretty we'll cleaned
up above the years previous low levels.
The temporary rally on the bank state
ment was OF little significance. as the loss
or cash, which was expected to be nominal,
ran to S,3O6,t00. with to-day's exports of
gold still to figure in the averages. The
an offset. Neither could 1t be said that
the weakness OF the market was due to
the Government crop report, the conditions
disclosed by that statement being about as
was expected. with the known progress of
the crops since the first of the month as
an offset.
GRAINS INFLUENCE.
The reactionary tendency of the grain
markets to-day was evidence against the
supposition that the crop report was disap-
pointing The market closed active and
near the lowest, the few late rallies not
being well held. The dullness and hardness
which characterized the stock market of the
declines later. The outcome pointed to the
inference that hopes were entertained that
the easing OF the money market, which is
usual to the turn of the fiscal year. would
bring some demand for securities into the
market. This hope was disappointed. and it
became Obvious that efforts to liquidate
We're awaiting any increase in the absorb
TIVE power of the market. Whatever favor
able developments occurred in the general
situation were ignored, and the selling of
the stocks of all classes was freely pursued
The most notable of these favorable devel-
opments was the showing of railroad earn
ings made in the reports for the fourth week
turns for May.
The coalers were conspicuous in the gen.
eral tendency toward increases over the
the net returns for May and the gross earn
ti.gs for the later period. AS a consequence
there were some early advances in the price
OF this class of stocks.
RAILROAD EARNINGS.
The increase in gross earnings for the
fourth week Of June for the roads report
ing was 25.54 per cent, compared with the
corresponding period Of last year. The in
with the preceding May, for the roads
SO far reporting amounted to over II per
cent. This encouraging showing was ig
nored In the general speculation and atten-
ton was concentrated on the more doubtful
or unfavorable factors in the outlook. The
surface ease and quiet in the money mar
ket are regarded as somewhat illusory and
probably due % other causes than a real
abundance Of available funds. For one
thing. money-lenders are inclined to keep
large proportion of their funds In easily
accessible form. and as a consequence there
are free offerings of call loans and time
loans for the shorter periods. 1t is known
that large stock commission houses in Wall
street which have supplied themselves with
time money for prolonged period as pre-
cautionary measure are keeping much of it
out on call. For periods of six months and
longer there is an active demand for money
and extreme conservatism in placing it.
AdviceS from interior money markers are
OF an active demand and hardening tone,
with evidences of an early pressure on in
terror reserve cities. which has led to ces-
sation of the interior movement of currency
toward New York.
This situation is complicated with the
week large outgo of gold and the scar
city of commercial exchange bills due to
the small outgo of cotton and grain incl
dent to the high speculative prices ruling
In the markets for those staples.
BREAK IN COTTON.
The weeks violent break in the cotton
market was regarded hopefully in the
financial district as promising to put to an
end the artificial conditions existing in
| that market, but the later cotton market
| seemed to show the speculative forces still
| In control. Another symptom of the under
| lying hardness of the money market is the
reported difficulty of securing funds by
| financial syndicates and the higher interest
| The current reports In Wall street are that
| notes issued by the various railroad COM
| panies sharing in the new control of Hook
| ing Valley bear interest at the rate of &
| per cent and high rate of interest was
rumored also on the money borrowed in
the change of control of portion of the
| oregon Short Line system. The closing
| out from time to time of old standing un-
| derwriting synGicates shows considerable
! portion of the underwriting issues left in
! the hands of the SyndicateS. and efforts 10
market these in the open market have re.
| suited in some quick declines.
The offer to extend a maturing 7-per-cen
bond of the Burlington system for two
| years on a 4-per-cent basis was regarded
\ as indicative of the dissemination to at
| tempt the issue of new securities at thi.
| time. But the most striking indication O
| this condition of the money market ha.
| been the action of New York stock in tn,
| face of the needs of the corporation t,
| raise capital for carrying out the extensiv,
| terminal improvements which it has under
| taken. The inference that the S17, 100000 o
| stock in the company's treasury might b.
coming on the market has resulted in
precipitate downward plunge in the marke
| 3Ia-per- cent bonds Of the company, of whicl
| residue in the treasury are available TO
| issue, have also broken through par for tn
| first time in their history to several point
| below.
STEEL LIQUIDATION.
The effect of this development upon tn
stock market of the latter part Of the wee
has been aggravated by the heavy NANTES
in the United States steel stocks in fac
of the official claims of satisfaction wit
the quarterly earnings of the corporatio
published during the week. The decline i
net earnings compared with the correspond
ing quarter of last year is explained by tn
prevailing freight blockade on the railroads
which obstructed the supply of material a
well as the delivery of product.
| But reports from the iron and steel trad
of increasing production of pig iron, accu
| nrlating stocks. yielding tendency in tn
market for products and rumors of cut i
steel 6es tSe more influential
claims for earnings. Stocks of independer
Iron and steel companies and stocks fror
all industries generally became weak. TIL
| successive Developments of difficulties in tn
financial affairs of newer industrial comb
nations keep alive somewhat indiscrin
mate feeling of distrus s Of the whole elias
, | crops has been considered favorable and tn