The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-03-01
STOCKS EAGERLY BOUGHT
AFTER THE BANK STATEMENT.
CONDITIONS NOT so BAD AS
EXPECTED EARLIER.
Merely Nominal Loan Decrease
Causes Much Surprise and
Comment on Wall Street.

with great freedom during the first hour OF
to-cay's short session md were renousnty
the bank statement. Tine uncovered bear
interest was plainly factor in the buying
and the efforts 10 get stocks were 1eit even
during the selling Of the first hour Com
misson-houses also reported some buying
attracted by the considerable decline OF the
week. New York Central suffered a drive
prompted by the report of the extensive
landsides along its tracks. PENNSYLVANIA,
on the other hand. offered good resistance.
New York Central to Pennsylvania at the
same price level on the ground OF the hiSh-
err dividend rate. The PENNSYLVANIA an
nual report also helped the stock and the
rumors of possible control of Wabash con-
tinue to have some speculative influence.
The traders followed the. st. Paul move
ment both downwards and upwards IN tne
belief that they we're in strong financial
company. Amalgamated also resisted the
decline snd made good rally The de-
crease in cash In the banks showing OF
siS4S1oO compared with preliminary esti-
mates based on statements by the banks
themselves OF from S,5oo,9co to over $500.
900, caused the rally. 1t is believed that
the late movement of some of the large
cash consignments lessened their effect on
the weeks average. which would throw
their effect over to next weeks statement.
DECREASE IN LOANS.
The merely nominal loan increase was
the greatest surprise of the statement ana
finds no plausible explanation. The sun
treasury had a credit balance of over hall
a million ana the CledTlIlk-uCuSt tluS iipA
Ing. reflected the continual drain of funds
to that institution. The large customs pay
ments are explained by the sl4.02O552 value
%eW York an increase Of over last
week and of three-quarters of million
more over the corresponding period OF iast
year The stock market closed somewhat
unsettled The dominant factor in this
weeks stock evidently has been the money
market. The immediate development mas
been the hardening tendency of time money,
and the conviction has become more SET
tied that scanty money supply and con
sentative action by the banks In aceo iIdna
mite period. An example Of the Importance
attached to the question was the sensitive
ness Of SPECULATIVE sentiment to Sne sens
ate Lively recollections are held OF the
added difficulties of the money crisis last
fall by reason of the withdrawal from cir
cuiation by collection of the Governments
surplus and the narrow resources left to the
Secretary of the Treasury for returning the
Government funds to the channel OF the
market
Evidence accumulates daily of the large
needs ahead of the money market. not only
by reason of the high level of business
activity. but in the heavy new capital Is
sues in all branches OF the business wor,o
Last weeks demands upon New York for
currency from New Orleans were supple
mented by the large transfers this week 20
Chicago which came somewhat unexpected
~. This demand was attributed to the ma
turity of obligations on March on second
airy payments on some Of the large projects
entered upon in the West last year. 1nte-
rior banks are availing themselves of all OPP
portunities to draw on their New York cor
respondents for performance of financial
transactions, with a view to conserve their
own resources for the needs Of the interior
money markets.
INDUSTRIES ACTIVE
Great activity continues in all lines Of
trade. and the GneculatfOO and
corn adds to the demands for money. In
the iron trade the advance in prices of
lake ores is accepted as assurance OF the
high level of consumption and the prospect
of continued activity In all branches of that
trade. The American demand reported in
German and Scotch iron markets is addi-
tional evidence of the inadequacy of pres
ent domestic iron production to meet the
consumptive demand. Copper has risen
kinds Of merchandise continues to congest
the facilities of the railroads. While these
are all accepted as gratifying evidence of
the maintenance Of the country's high level
needs IN the transaction Of the eufi large
volumes of business. Meantime the ex-
featuring lines and the great projects
of the railroad systems to meet
the demands upon them, especially
facilities. are reflected In the constant Of
ferIngs Of new stock and bond issues
The outgo of $4,000 in gold to Buenos
change rate near the gold export point are
reminders that foreign creditors have claims
upon this money center which can only be
deferred by advance in the domestic
interest rate which offers an attraction for
leaving foreign money at loan here. In this
department there is the contingency also Of
the payment of ,5O,0DO,OO0 to the Panama
Canal shareholders and to Colombia.
MORE MONEY NEEDED.
Another factor in the situation Is the OBJ
ngation upon New York trust companies
like s2o.eo,ooo in their own vaults by June |
to meet the new rule of the New York
Ciearing-house. It is calculated that the
credit facilities by four times the amount
as 1t will be withdrawn from the bank re-
serves, where 1t figures as one-Quarter OF
1t is believed that last weeks heavy cash
decrease In the bank statement was due to
some preliminary ACTION to this end by the
trust companies. Many of these factors in
the money situation have been In view for
some time. but the rise I'm money rates this
week and the heavy iEroads upon bank re-
serves bring them home to the minds of op-
orators in securities SO that they undoubt-
eddy form the underlying influence in the
persistent repression of speculative activity.
The almost tota! lack Of response in the
stock market to the disclosure of the far
reaching Rock Island-St. Louis and San
tss is srens
the ,electrifying effect upon the market of
former great railroad deals Account must
De taken also OF the erect OF diminished
gross earnings for the railroads in the third
week of February. due to the obstruction of
traffic by the great storm. Increases are,
however. shown over the corresponding
week Of last year. but in a much less ratio
than for the first two weeks OF February.
RAILROAD EARNINGS.
Returns of net earnings fd January are
still too few for conclusive Judgment. but |
those which have been issued fail to confirm
the hopes that the rise in freight rates In I
January would effectually relieve the en-
eroa chments on net earnings by reason of
larger operating expenses, which were evil
dent in recent months. There has been dis |
Gus sion in Wall street of the Supreme Court
decision In the lottery case, and the broader |
scope of the power of Congress over objects !
Of interstate commerce implied by that de-
cision has become an element in the; tnfiu-
ence OF antitrust agitation upon industrial
securities.
The movement of prices in the bond mar
ket has been more irregular than Of stocks, 4!
but the activity In that department COM
pared with last year. Is relatively much less |,
than that in stocks. United States IS cou- |
pom advanced per cent. as compared with !