The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-07-26
STOCKS WILD AND EXCITED
IN TIE NEW YORK MARKET.
BROKERS FEAR FURTHER
COLLAPSES OF FIRMS.
Buying for Investment and for
Protit-Taking Apparent in the
Closing Hour.

excited throughout, as an after-effect OF the
failures of two important exchange men,
bers yesterday. and the dread that those
failures would have Il sequel in the suspen-
sion of other embarrassed firms. Through i
out the wild fluctuations in prices OF spe-
cialties the standard stocks showed evil
dence of the same kind OF absorption and
comparative stability which characterized
them in the market of most of the week.
before yesterdays failures had excited and
upset the market. The day passed without
announcement of additional failures. De-
spite the fact that no deliveries on contract
are required on Saturday and that loans
made on Friday carry over until MONDAY
thus giving a breathing spell FOR hard-
pressed firms. the absence of announce
ments of failures was not entirely reasSur-
ing as to the adjustment of difficulties. mat
such difficulties exist Is now pretty well IN
derstood. But the general knowledge of tho
existing difficulties and of their location
seems to deprive the situation of much OF
the disturbins power which the pr ,IN Gus
mystery possessed, and did not check the
absorption above referred to.
TAKING PROFITS.
Part of this buying is by shorts taking
their profits. and it is highly probable that
part of it is by banking interests who are
concerned in sustained values. But it is re-
ported that there is also some evidence Of
investment demand both from domestic and
foreign sources, in the belief that the alb
normal speculative situation here has re-
suited in forcing prices to decline as ar
tificial in its way, as was the imitation which
preceded it and largely has caused IL.
The general market sold off again on the
bank statement. as the report of an actual
increase in the loan account in view of the
weeks violent nquidation is considered
nothing less than astounding. The pressure
for. credits. which could have produced
such a result. must have been enormous. al
fhntlph recognized a.
the banks must be strengthened by the adj
ditional collateral and the Improvement in
its character, which have undoubtedly been
exacted.. The bank statement was. never
theess. sufficient to make the closing in
stocks weak. and there was late pressure
also upon bonds. The convulsive contrac-
ton in prices of many specialties was rec
ognized as being due in many cases to clos
ing out Of collateral for loans of the failed
firmed the plant of the prominent oper,
ators connected with Yesterdays principal
failure, that even investment stocks are
unstable in the present market: Some of
the collapse talk served to direct con-
illusions to the neighborhood of other
troubles, against which struggles are max
ing from to 23ls points could, be COM
piled.
WEEK OF LIQUIDATION.
There has been continuance of liquida-
ton in the stock market this week, but it
has been more scattered and irregular than
in the preceding period. The active divi-
dend-paying railroad stocks have been less
affected and have shown resistance to the
depression.
So far as they were offered there was a
better demand for them and the-market has
been without the entire apparent lack of
support which characterized 1t ut times
during the present liquidation. A large part
Of this buying was from the short interest
which has been accumulated during the
long decline. and which is prompted to
cover by the evidence of tighten
ing pressure to sell stocks. News from
the business world at large has con
tnued highly favorable and until Fridays
failures of stock exchange firms nothing ap-
peared to account for the shrinkage Of Sc
curity values aside from the announcement
of failures in the building trade after the
middle of the week which served to renew
the nervous tone of the speculation. The
precipitate decline in the iron and steel
Steel stocks. to point below that touched
in the panic of May 9. 1901. was another
disquieting influence. Statistics of rail-
road traffic have shown the movement of
merchandise on an unprecedented scale and
railroad officials profess an expectation of
all the business for the rest of the year that
their expanded facilities will be able to take
some fear of car shortage and freight
blockades. in repetition of last years ex-
perience.
RAILROAD EARNINGS.
Reports of railroad earnings have been
generally favorable and the action of the
Erie directors in advancing the dividend on
the first preferred stock from 3 to per
cent was accepted as an expression of
confidence in the maintenance of the level
of earnings. The condition of the crops
has warranted the hopes of large yield
of wheat and corn. although the Weather
Bureaus bulletin for the week was not en-
reports of hot winds in the corn belt made
an impression on stocks at one time. But
the fact of the urgent liquidation was
obvious and the mystery of its sources and
causes added to its influence in unsettling
confidence. That the unwieldy commit
rnents in doubtful enterprises in the face
of the necessity for the employment OF
large funds in the active business and in
railroad betterments and improvements is
at the bottom of the trouble is generally
| recognized. But the fear has grown up
/ that the shrinkase in securities values and
the difficulties of the money market will
| themselves react on the general situation
| and prompt the abandonment of enterprise
| which are relied upon to keep I'D the de.
| mand for commodities
Such tendency is suggested by the IN
| timations that various railroad companies
| are modifying plans for betterments owing
| to the difficulty, of securing money for their
| prosecution. The possibility of a contrac-
, ton in the consumption of iron and steel
! products from these causes has PLAYED an
| portant part in the weeks pressure upon
| the steel stocks. The financial community
| has been bewildered in the effort to find 8
. basis for estimating normal limit for the
| decline. but has received no light in the
development of any considerable Investment
| demand such as IS looked for at a level OF
| so-called intrinsic values. This has led &c
| a series of conjectures whether the pei
| cent rate ruling in the money market for
| any longer date than six months is to be
| looked to as the basis of return for invest
| ment in securities.
CONVERSION INTO MONEY.
With a per cent rate for longtime
money there is undoubtedly some CONVEX
sion of securities into funds for placing il
temporary loans. But it does not follow
] that this process would be pursued down t.