The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-04-05
STOCK MARKET IS NARROW;
ssPEcULAT0RS DISAPPOINTED
BEARS GROW CAUTIOUS AFT
ER BRIEF FURRY.
Wabash Lifted on Reports of
Wage Settlement-Wall Street
Has Had Anxious Week.

New York. April 4-To-day's stock mar
ket was too narrow to have any great sS-
~nifcance. The opening decline expressed
the disappointment Of those who bought
yesterday on the runor thai The pool hold
ings OF Southern Pacific had been taken on
days furry among the shorts on account of
this rumor conveyed an impressive intiH1a-
ton Of the possible effect Of such n settle
ment should IL suddenly develop. and aWak-
ened a spirit of caution on the part Of the
bears. There was some support offered the
market when i was seen that the selling
pecially was lifted a point on the strength
OF reports that there was a good prospect
Of An adjustment Of the labor dispute on
followed the appearance OF the bank state
ment showing a-decrease in surplus re-
serve of I.L0.W5. bringing that item down
10 &.l20.S25. This showing was wholly due
TO the fail IN cash. the loan Item showing
a nominal decrease of less than I million
dollars under the average system In spite
OF the very large aggregate changes in
loans known to have taken place during
the week In the April settlements. As COM
pared with an estimated decrease in cash
OF a million and a half the statement shows
that the banks have lost this week SEA
500. There is induhitable evidence that this
result was due TO the fact that the trust
companies are Withdrawing or withholding
deposits from the banks to build up the re-
serves in their own vaults 10 conform with
the clearinghouse rule that they shall be
able to show a cash reserve amounting to
10 per cent of the deposits on Tune L
EXPORT OF OLD
There seems also to have been an outgo
OF gold 10 Canada during the week more
nearly equal to a million dollars than to
the $4,000 reported. The selling induced
by the bank statement was again met by
support. based on a confidence that fac
tors are working toward improvement OF
the local money situation in spite of the
weak bank return The rally seemed TO
have spent its force before the close. which
was about steady. TIT most notable fact
regarding this weeks stock market has
been its progressive dullness. leading to
the low level of daily transactions for the
year toward the end Of the week. The
general tone has been one of depression.
although this was temporarily revived on
Tuesday BY a brief upward reaction. This
April disbursement OF dividends and inter
est would relieve the tightness of the
money market and result in some buying
OF stocks. but a published interview with
J.. I. Morgan was of even greater effect
with the professional trading element. Mfr.
Morgan's tone of depreciation OF prevalent
pessimism regarding financial afairs was
expected to have f~ar-reaching influence wi n
the Investment classes. but beyond the
professional buying Intended to anticipate
such Investment demand on Tuesday there
ket.
SHORTS HAVE ENOUGH.
Even the short interest seemed to he
soon satisfied. disappointing the hopes OF
those who have looked for substantial aid
nnally turned upward. Mr.. Morgan's ex-
pressed faith in tine soundness OF the recent
Sdph1A Issues WHICH nave SlGtted the mar
ket and proved practically u~nmarketable
mas had some reassuring effect. beyond
question. although his conclusions have not
been accepted without reservation in bank
ing and financial circles. Faith in the
s~oundness OF the new ~cecurit.es on the
part of those holding them may be in
ferred from their being withheld from sale
IN a weak market. while other standard Sc
curides are liouidated to provide resources
for holding the new issues. Some OF the
recent persistent selling of high-grade rail-
road stocks Is attributed by common con-
sent to this purpose to conserve holdings
OF new bond and stock issues. This process.
however. amounts to a demonstration that
the holding of railroad stocks on an invest
ment basis of from 1 or under to ~ per
cent II not an attraction to capital with the
money market on an interest basis of over
5 per cent and no definite prospect OF an
Improvement in the money facilities. Stocks
which have been held high on account OF
promise Of rights TO stockholders to sub
scribe TO new issues below market prices
are particularly affected by the prevailing
tendency to realize on all such rights as
promptly as possible. without depending on
the doubtful facilities OF the money market
for taking M these future subscriptions
The showing of net earnings by the rail-
roads also arouses the suspicion that some
OF the recent selling Of hish-grade stocks