The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-11-15
STOCK MARKET LISTLESS
AFTER WEEK OF SELLING.
ONLY A FEW POINTS OF
STRENGTH APPEAR.
Events Relating to Steel Trade
Lead to Fear That Time OF
Depression Is at Hand.

New York Nov. 14-Trading in to-day's
e%rations were on too small a scale to Of
fer anything of Il representative charac-
ter. There were a few points of strength,
including Chicago and Alton. on a revival
of rumors of its possible absorption as a
connecting line in q large system. South
ern Railway advanced in response to rath-
err vague assertions that the Seaboard Air
Line was in a way to be brought into the
Southern community of interests. The up
ward movement in Manhattan continued
or the score of the increase OF earning
power through electric operation, as re-
vealed by the last statement. One or two
minor stocks rose without explanations
The market as a whole failed to show a
continuation of yesterdays movement to
cover shorts. and prices drifted rather
aimlessly. The bank statement proved
| decidedly more favorable than the fore
cast had Indicated, but nevertheless its
publication was followed by a brisk selling
movement, which centered upon Pennsyi-
yania, costing that stock the greater part
of yesterdays gain. Reading and Anal
gamated Copper also lost more than a
point. and the whole list receded to below
last night. The decline in the cash re-
serves of the banks proved to be only g.
913, 200. Yesterdays stimate indicated an
outgo for the week of 100000 without al
lowance for yesterdays arrival Of foreign
gold, to the amount of nearly 100000.
The deposited liabilities of the banks have
been reduced by 81. 629. COO, principally
through the loan contraction of s1O,2ao,5O-
The reserve requirement is thus dim1n-
ished to the amount of s3,o5i,4OO, leaving an
increase in the surplus of s1H,a0. With
the falling off of the movement of curren-
cy to the interior. which occurred, and the
supply of foreign gold afioat for this port.
the money market prospects seem to offer
nc occasion for uneasiness. without count
ing the likelihood of a considerable fur-
Their movement of gold this way. The mar
ket closed dull. and heavy.
ENORMOUS SELLING.
| Steel securities was followed by sellingof q
similar character of Pennsylvania and
disturbed the stock, market during the
week. The sympathetic effect of the
weakness OF these stocks was resisted for
a time and the general market showed a
| degree of firmness, but ultimately sue
cumbed and yielded to a lower level. The
been subjects of much conjecture. mucn
of which appeared In the form Of asser-
The dilieent activity Of a large and we'll
organized bear party accounted for some OF
the rumors set afloat and a large part OF
the dealirgs In the most prominent STOCKS IS
the form of trading In and out for short
turns on the movement. without AFFECT
ing the actual holdings of stock peIma.
nently. But the success attending these
professional operations and the STEADY
downward course of prices pointed to a
process OF actual Liquidation and Of I'M nj
i ptllllS CdhSCo
speculative confidence and weakened the
whole market. The course of the United
States Steel stocks had for the most
ton of the iron and steel trade. now
freely acknowledged. The professional
leaders of the campa' gn against these se.
the price of so for the preferred and 10 for
the common and those points were
touched by both stocks and overrun byl4
for preferred. Large covering Of short
contracts then followed and rallied both
stocks. The ccve'i-g movement wal Ell.
couraged by the formal announcement OF
the decision to cut prices no further than
had been done in contradiction to. numer
Gus rumors in persistent circulation
SENTIMENT DOUBTFUL.
But sentiment over the further develop
ments in this important index trade IL still
much unsettled and doubtful. The effect
upon consumptive demand Of the new
basis of. prices Is awaited. Continued dis
cussion of plans of economy by reduction
of wages outlay and salaries in the execu-
tive departments and agitation for re-
duction of freight rates on iron and steel
products are accepted as Indications OF
v teIopnp nts' have indicated il e the futihty Of
the United States Steel Corporation as a
device for maintaining stability in the
ton. The restraint which the corporation
had been able to exercise upon the rise In
prices during the period OF active demand
%as pdov and 't tss presen to c s1sst in prices ices
point to the necessity of old methods to
stimulate demand afresh. The result has
dents Of an interval of extreme depres-
sion in the trade must be faced. Greater
confidence is now felt in the owe to re-
Profitable accumulation Of stocks. But the
effect Of this process upon earning power
and dividend payments Is dreaded.
of the operations of the preferred stock
converting syndicate. 1t is the occasion
for criticism that, while his syndicate is
an agreed compensation of 4 per cen on
the par value of preferred stock convert
ed. the heavy decline in prices Of the cor
Of circumstances to increase the profit on
the syndicate's operations. On Tuesday
OF this week. when United States Steel
the s-econd-mortgage bonds was IS, thus
Offering a margin of 15A points Of profit
on the conversion of preferred stock into
to the syndicate. The syndicate was a
large. buyer of the preferred stock on
Tuesday. and this helped to rally the
be had as to the syndicate's operations
remaining to complete the conversion of
| the available stock. The depression in the
on the movement on Pennsylvania, owing
to the large tonnage of iron and steel
products carried by that road. The fall
inS on In the coal trade by both anthra-
cite and bituminous was also offered as a
factor in Pennsylvania's weakness.
CAPITAL EXPANSION.
But the principal cause of the selling Of
this stock was believed to be the large ex-
pansion in the capital of the system.
which is in progress. The increase In the
capital stock Itself of s75. 000.00 par value,
early In the year. has been followed IN
the last fewkweeks by the issue Of upward
Of $50.0O0.O00 Of bonds and stocks by sub
sidiary companies of the system. The In.
crease in earning requirements for fixed
charges and to maintain present dividend
rates, thus comes into consideration. The
| proposed outlay of large sums Of this cap
ital for doing away with grade crossings
and for terminals. Is the subject OF sesti-
mates as to the increased earning power
that a part of the liquidation in the COM
| pany's stock is TO provide resources for
taking up new bond issues. It Is inti-
| mated that large foreign subscriptions
| have been made to the new bonds, and
foreign selling of Pennsylvania stock dur
ing the past week has been reported on a
large scale.
tons on the international exchange sitta-
ton has been partly onset in TINS Way.
Other offerings of new railroad securities
Indicating a general waiting requirement
| on capital as 1t becomes available have
| had a disturbing effect on opinion Of Sc
%curities values. The extreme weakness
of foreign exchange is attributed in part
to foreign subscriptions to the new rail-
| road bond issues and principally to the
heavy offering of bills against cotton ex-
| ports, which have forced the exchange
rate down to the gold import point, IN
| spite of measures BY foreign bankers to
| protect their gold supply. The gold move
| ment is expected to reach considerable
demands upon New York for currency Is
thus felt to be assured.