The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-01-25
DIFFICULTY OF MOVING
STOCK MARKET CONTINUES.
VENEZUELA AFFAIR SERVES
TO REPRESS TRADE.
Spectators Begin TO Fear That
.Availavle Funds Will Be Re
quired by Syndicatcs.

New York. Jan. 24.-The difficulty in in,
ducing prices to move still confronted ;he
traders in stocks to-day. as it has in in
creasing degrees all through the week. Tht
Venezuelan difficulty still has 4 Oppressive
influence upon trading. and there was some
disposition to couple the prompt signing of
the Panama Canal treaty with that ques-
ton. Prices hardened. however. after the
opening because of the announced decision
OF the Washington authorities that the
German action in Venezuela did not present
a subject for representations by this Coy
rnment The weakness Of Pennsylvania
was the unsettling influence. and led to an
active selling movement, which was only
momentarily checked b. the bank state
meut. The closing was easy. and with some
quotations at the lowest. The selling OF
of the borrowing OF $4,000 M by that com
rany. The fact that this loan for six months
was negotiated at Az per cent. compared
with . per cent. and liberal commission
paid by the Lake Shore for its &o.co.Oo for
the Reading purchase. was pointed at as
evidence of a declining tendency of money
c,ined to see in ii rather an evidence that
floating supplies OF capital are likely to be
ersrossed by continued large syndicate OBJ
e~rations. rather than 10 be LEFT free for
stock-market uses.
LOANS MODERATE.
TIL moderate loan expansion by the banks
in view of the Pennsylvania loan operation
was an agreeable surprise to the traders
anu Ii uiIlIttu LII ltCONelA iItll CAV way
again at the last. The stock market fell In
to a rut this week. in which the narrow and
sluggish fluctuations of prices were due TO
the varying operations OF the room traders,
whose day-to-day operations have consti-
tuted the whole market. Current comment
on the market is largely made up of the
or the opinions they advance, which repre-
sent their hopes OF an influence that Will
cause prices I" move. as mucn as any acte
ual Information of events. The volume OF
dealings has progressively declined to the
low level I, the year. With the general
public Indifferent to the stock market ana
with no opportunity therefore to distribute
securities to investors and Withholders
equally diSinclined to sell at the present
level OF prices or at the concessions Whi ;ri
regular fiuctuation from day to day Is the
normal condition of the market.
At such times professional traders on the
floor or in brokers' offices watch keenly the
development of events and the news reports
and endeavor to interpret the efcct these
will have on the sentiments of real holders
of securities or the real investment seekers
for securities, and to anticipate their action.
In times of active markets they are thus en-
abled to realize profits by knowing before
hand OF the movement, but in periods OF
stagnant markets, when real buyers ana
sellers are both idle. there Is nothing Tor
the professional trader to DO but TO relrleve
his position and close up his commitment.
which he is prone to do on a very narrow
movement either in his favor or against
NARROW FLUCTUATIONS.
The result is Il market Of freGuent ana
narrow fluctuations The sufficient eXplana-
tion of one days movement Is that the pre-
viouS days was n contrary one ana was
found to attract no following. In the pres
ent market it has been shown also that the
weeks downward fluctuations have encoun-
tered buying orders placed below the mar
ket either for the purpose or protecting
values or for purposes of accumulation on
an expected downward range. such Il con-
dition is sufficient to deter bear traders
from extensive commitments on the short
side of the market,
On the other hand. upon any advance in
prices buying orders are to be found with
drawn and and the market is likely to meet
selling orders for purpose of realizing. IN"
rigidity Of the market is thus maintained.
Whatever may be the advantage from 4
conservative financial standpoint of the sta
hility thus induced. it is the death of spec
ulatiou. The huli movement after the frs.
of the year was evidently in the hands -:
n large class of operators. who demonstrat-
ell Ia their disappointment that there X
not sufficient public interest in stocks 10 Of
fer opportunity for their digestion, and the
heavy operators have become quieSCent for
the time. The basis of the Indifference of
the general public to securities must he
The direction to he finally taken by prices
when the market energies from its lcthsr-
sy is still a matter of doubt. and conflict
country has reached the high tide of pros
rcrity still exists in Wall street. The OK
traordinary business activity. causing ac-
tuai btbck;ue o. iIG!Sut movements III
some directions does not altogether dispel
this feeling.
CAPACITY REACHED.
It Is offered as evidence that the limit of
capacity has been reached by the railroads;
while the tide of operating expense and
wages continues to rise. Many expressed
hopes of dividend increases have been dis.
appointed. and it is feared that railroad
companies will feel constrained TO preserve
their surplus earnings hereafter against flu
ture contingencies. instead of disbursing
them as dividends to shareholders. Opinions
over the foreign-trade outlook are also
mixed. The heavy exports OF grain are a
source of qualification. and give promise of
restoring last years deficiency in the ex-
port movement. but the rise of prices here
is a growing incentive to imports. az shown
by the monthly statistics of foreign trade
of foreign connection with lines of domestic
is thus brought into view. on the other
hand. the powerful current OF the home
ward movement of our securities from the
and it is believed. in fact. that
the supply has approached exhaustion. The
shows. however. that the supply of credits
by merchandise exports * not fully
sufficient to pay off the maturing ind'hted-
ness to foreigners on account "f banke"s
borrowing for the great promoter projects
cf the last year or two.
CANAL TREATY.
The signing of the Panama Canal treaty
also defines a requirement for transfer OF
vUU,UV III pay ilCilN VI tf' VI ana
claims. The outcome of the for
eign exchange situation. the prospect of the
coming years crops and the working out
the money and banking situation for the
coming year are felt to be of vital impor-
lance for the future. The foreign exchange
is for immediate consideration and
has baen a repressive factor in the last
week. Some consideration has been given
TO the Venezuelan situation. The request
the Secretary of the Treasury for ire
substitution of Government bonds for 9TH
crs az security for Government deposit has
awakened some profession of uneasiness by
bs mixers. but money has continued to pour
into the New York banking reserves and i'm
mediate pressure for credits has been en-
tirely relieved.
The dealings in bonds have not been i'm
and prices have fluctuated narrow