The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1904-09-04
TRADE THEORIES
ARE OVERTHROW
Stock Market Advances as Quo
tations on Grain Go Up.
EUNnS ARE MOST ABUNDANT.
FUNDS ARE MOST ABUNDANT.
Speculative Element Responsible
for Increased Trading. and
Movement is Believed 10
be- Temporary.


\ REPJ BLtC SPECIAL.
| New York. Sep S-AbundaEce O. funds
in the principal cities. to be obtained al
| extremely low interest charges. provides
\ the Spectator in quotations with the
I means 20 gamble 1T minimum expense
/ Cal rates for money have been ruling
/ around per cent for several months and
the eagerness OF the holder OF funds to
! find employment Cor his cash has naturally
| resulted in the Use OF fEe>e funds By the
| speculative element.
Employment has lately been found. rot
/. only in the security market bug also in the
wheat. corn and cotton markets. Co.rci-
dent with the advance IN stocks and the
activity IN the security market. there wa.
aii excited speculation in cotton, In fact.
the excitement in the commodity markets
has ov-rsnad1wed tho stock market SIN
gulaT TO relate. stocks advanced with
wheat. corn and cotton There vas TO
correlation between the various move
ments. apparently. and the effort Of "A dis-
iuitancc and unfavorablc developments in
the commodity markets were Ignored in
security prices.
The week Wa. one Of highly conflicting
noveInerts- Time honored theories % the
relation OF grain prices To stock were ruth
lessiy disregardsl. IN fact the securities.
which. n precedent counted for any.hIn 3.
would have appreciated extensively be
cause OF the advc.s.. DEVELOPMENTS actu-
ally advanced for tho most substantial
gains. Evidences Of this fact are 10 be
had thrcugAor; the stock list Weekend
eSn:piiations OF advances and declines
show that important advances Were sus-
tanned by the Southwestern ard Southern
shares. particularly thOse properties i'm the
Southwest The theory Of the advance in
prices was Of the Increased earning
racity resulting from n record-breal-iu;
yield OF cotton Shares Of one property
advanced nearly s. share on the benefits
OF the supposed bountecus yield OF cotton
In Texas
While these advances were being male
In the stock market. the cotton trals vas
discoUnting I'm an excited manner the ,N-
cessive damages dore to the cotton rrCD
Ia Texas by the raVsE.s Of the bo.i wee
VII ard the weather conditions Shares ef
the Northwestern railroads continued TO
advance In the face az calarlifous re-
ports Of damage done TO the wheat crop
Trade wars IN steel and iron. affecting
cisregardet in the calculations The list
might be augmented by the references to
railroad statements % earnings radically
lower revisioils OF cction-crop predictions,
ances In the commodity markets and the
labor disturbance
In ordinary circumstances. one must
look well ahead. and conclude that the
market Was discountiHg changed condi-
lions and improved trade developments
Otherwise. the Improvement shown In Sc
cur!,y prices might be regarded as a
The hes, Judges are certainly not those
persons whose speculative abilities ind
ready play in wheat. corn or cotton mar
kets or security markets So far the eN-
pectations OF trade Improvement has been
wholly TO the Improvement IN the stock
market
II one could believe that the upward
tendency vas due TO purchases OF sscuri.
ties by manufacturers or men arli!isted
with large financial ard industria. cor
poraffous then there would lie some merit
10 the hope and belief that the end Of the
present depressing trade conditions was in
sight
Unfortunately. however. the advance IN
prices during the last two weeks. or
more, ras been apparently for the &C
count O. a speculative element attracted
BY the favorable technical conditions of
the market The most common comment
made during the latter days OF the week
in refers nee to the market was the fla
grant manipulation of various issues. Tao
tics were adopted. which created a deep
seated suspicion against the market move
ment<. and suggested the FEASIBILITY Of
the theory that the movement WAS again
under the control OF the familiar crowd.
tie Western element. disguised cleveriy
in the machinery of the street