The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1903-11-29
STOCK MARKET DULL
AND MOVEMENTS NARROW.
MINOR INDUSTRIALS IN
CLINED TO BE STRONGER.
Week Has Been Full of Savage
Attacks on Many Issues Whose
SOundness Is Doubted.

triais were relieved from the severe pres
sure 10 which they have been recently
suoJected and were inclined to rebound,
Edihs OF a point or upward being the re-
sun m a number of cases. The general
nst idiieu 10 respond to this influence. and
the Was a disposition to sell following
whio Sppearance or the bank statement.
Wnlch was favorable. This movement was
t na,iai as We're the others. and the mar
from last nights level in any case Tho
sam IN cash by the banks was only about
in a. do what Vas estimated. but the decline
loan c9ntr, naplh'ies Was effected by the
me resulting decrease of 81. AZ $50 in tho
nrGGn,e e requirement helped out the sur
pius to that extent. bringing the incresse
IN that item to s2.213, $50. estabIishing tho
excess over the legal reserve at 81. is ao
SsT,npared with SIS. $500 a year ago and
3La'4lf.5io two years ago. Additional poId
was received by to-day's incoming .,.ar'
SHIPS and reports from London indicate a
INSPECT tnat part of ~s3.0co.0C0 to arrive
YORK The weekly bank clearings irdi-
ate thai the shrinkage from last years
IeVel Is still confined to the four large
i brea ceniers in the East. while the
lnrse largest cities in the West and South
ana the other cities of the whole country
continue to show ciearings in excess of
last year. The tone of the weekly renorts
VI the mercantile agencies was consider 81
encouraging as to the agricultural districts
ann the mercantile and distributive lines.
allhoush the manufacturing and industrial
branches are in q mood of discourage
meat.
ATTACKS ON INDUSTRIALS.
Inc weeks stock market has been chief
~ remarkable for u series of savage on
slaughts upon various industrial stocks
vi MINOR corporations. The railroad list
ana the Industrial stocks. which have al
re:dy gone through a drastic process OF
contraction. stood comparatively firm in
lnce OF this attack. and even made some
slsht headway, against the current. But
the violent declines -oilg on IN the minor
industrials effectually discourage any
great activity for a rise. and this. coupled
with the interruption of the Thanksgiving
uninteresting market outside of the spe-
cial movements referred to. The success
sive breaks in industrial stocks We're evil
IDENTITY the result of a systematic wedding
out process. primarily. on the part of the
banks and money lenders. in respect to
collateral loans. but to an important ex-
who seemed TO have knowledge of the in
tention Of those throwing the stocks out
of collateral and who resorted to fierce
raiding tactics on the Stock Exchange.
Given a security that is still largely held
in original hands having been well dis
tributed and never actively traded in.
tected by supporting orders in the stoc,s
market ard technical. conditions are PIE
scented which permit of violent and sudden
price movements. which may be cniy re-
motley related TO the question of octuai
values.
UNDESIRABLE COLLATERAL.
The neglect into which a long Est o.
securities has fallen in the daily trading
in stocks in itself makes them undes,r-
able as collateral for loans by hanks.
which. ii is important should be instantly
convertible into cash By calling of loan;
and marketing of collateral. The course
of prices this week under this process is
an effective demonstration of the uasuit-
ableness of much Of the collateral tor the
purposes for which it was held. There
was little specific news to account for fhe
there was a notable tendency for the vi
oient breaks to occur on 'wnat could o.
| regarded as good news. such rs div1d.:d
clearances on preferred stocks concern
| ing which vague rumors of doubt II y
have been current. Distrust of the whole
industrial outlook and a conviction that
reaction and contraction. such as nave
been demonstrated in the iron and sies-
trade. must be faced in. all Lines of IN
dustry, were at work in causing tn.s
movement.
UNDER SUSPICION.
The whole fabric of the organization of
industrial corporations is under suspicion,
and every new evidence of iusuf1iciency OF
working capital, where liberal dividends
have been distributed and of threatened
new capital issues ahead of stocks to sup
ply this deficiency, eerre 10 intensity this
suspicion and aggravate the pressure OF
securities on the narrow market. Beyond
the present situation doomed up Il pros
poet, of new competition when INDUSTRY
on which present inflated capital issues
have been made are seen to have been ef-
fected at extravaganza valuations. SO, that
room is left for duplication Of facilities at
4 smaller outlay of capital on which re-
turn must be secured. The extension OF
the term of the International Mercantile
Marine underwriting syndicate frons De-
cember l.. upon which 1t WIS to expire. 20
March 1. 1855. is interpreted as a measure
of the present helplessness of f%otation Of
industrial securities. and the earliest peri
cd within which any revival may be
looked for. The comparative firmness OF
the United States Steel securities during
other quarters goes tn show that ar i'd
justment Of the whole list to the basis
rixed in that premier security, as a stand
ard h,s been in sort i"tnndnd.
In the general market the movement
has been a sort of marking time in wait
ing for the fall money conditions to work
from London but on a limited scale. and
the Bank CT England has used the euz-
tomary. means to protect the London
stock of gold: Liberal supplies Of exchange
have come into The New York market.
and it Is commonly believed that a part
of the absorption for so-called investment
in connection with the Panama Canal pay
ment. TIC induce this operation the rate
of exchange must fall low enough to-6f.
fer a profit by the time Of the maturity OF
the bills. which will contrast fayorably
with tie rate Of interest in the local
market. A rise in the all-money rate
consequently depresses the exchange mar
ket by releasing supplies to that market.
while an easing Of the call-loan rate in
duces new investment demand for ex-
change.
In effect the collection of exchange OBJ
legations in London proceeds except when
the balance of profit turns to the side OF
retention Of the credit in London. There
is some question raised whether the cur
rency reflux from the West may be de-
to protect themselves against money
emergencies. But 1t is not likely that
ANYTHING short Of actual runs on banks
will prevent the usual remittances to New
York under the law allowing national
banks to count deposits IN central reserve
Hopes over the railroad outlook are in
ciined to turn to the chances for retrench-
ment in expenditures for betterments. and
even to reduced cost OF operation by
economies growing out OF the large per
manent betterments affected during the
late prosperous period.
PONDS nave been dull and rather frreg-
Mar in harmony with the ttghtness OF the
money market. United States new 4s de-
cIined y and 9. 3s and old IS II below the
closing bid Of last week.
Wall Sfree1 Gossip.
Reported by the New York Commercial Adj
vertiser through Francis. Bro & Co.. Nob Us
MOTH T9ur.n was yeryyh little done in Amer
icsns in London to-day. In this market az
bitrage houses bought about 1000 shares
Canadian Pacifc-The. weakness wa: due to
selling by houses with Montreal connections. 1t
was said to be belated liquidation for account
OF Canadian spectators. and II was accon-
panied by fresh gossip.
vt htr0 W10