The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1904-02-21
WALL STREET CLOSES
WEEK OF DENSE DULLNESS.
PRESSURE FROM FOREIGN
SOURCES INEFFECTIVE.
Declines in Paris Attributed to
Shrinkage in Value of Rus
sian Securities.

oiSS Lax uepItSStOH WdS oSSi-pnilS- OIL il-
terest in the market abruptly terminated.
There seemed to be a waiting demand for
stocks or any decline. but no buyers were
at hand to follow any advance. The prin-
c!pal pressure upon the market came from
foreign sources. This was well absorbed
and prices were at no time down to the
London parity. The sentimental effect OF
the decided upset in the Paris n Berlin
bourses was very slight. The declines on
the Paris Bourse are attributed to finan-
cial needs aused by the shrinkage in Rus
sian securities. which are a poor sale at
the present time, so that necessities must
be met by sale Of other securities. The
special weakness Of state funds In Paris
might. however. be due to knowl
edge Of diplomatic affairs not available to
other centers, which would explain Its
greater sympathetic effect on other foreign
markets.
help to the resistance to depression here.
The 81, 54, 400 increase in cash was not un.
expected and Is attributed to 4 return OF
money from the South where inc e sed I fse
Immediate need. Some of the money sen,
to Baltimore is believed also to have come
lack. The loan decrease Is evidence that
corporation borrowings have been largely
supplied out of the previous loan expan'
sion. 1t is probable also that the proceeds
of railroad loans are left on deposit with
the banks pending the need for employing
the funds, which are available to the loan
market in the meantime. The market
closed about steady and not far from last
nights level.
WEEK OF DIZZINESS.
The weeks market for stocks has beer
duller and narrower than for nearly four
years past. Monday transactions falling
to total of sales less h a for any day
save one since the summer of 1900. The
news of the week has not been favorable
to =adyansins prices, s but the ed adverse sS,, ds,
without effect in bringing sales upon the
market.
The stubborn resistance of the market
to all unfavorable factors has prompted
the professional traders once or twice to
attempt to advance prices after testing
their ability to depreSS them without sue
cess. The occasional upward movements
here and there were without news to &C
count for them. and were quite evidently
due to the testing operations Of the trad
ers. who are at the end Of their re-
sources to effect 4 sufficient movement
of prices in either direction to afford a
basis for their daily operations. These
professional operations have made up al
most entirely the market. the action of
which. or its nonaction, is evidence of the
strong hands in which stocks are at pres
ent lodged, and Of the small speculative
position ppen Holders are apparently in
1 = IN uAJ-tt-udy u6S6lOpDnelt
and seem to be content to hold their
property for more propitious market con-
ditions. The same spirit is seen in the
policy. OF the railroad companies to nego-
tlate temporary loans at a comparatively
nigh rate Of interest, rather than attempt
to issue new securities at a time when
the demand Is listless and almost stag
n Sa,1,Ia At the same m an occasional
proves TO be almost without effect on
prices. giving the impression. in view of
the narrowness of the market. that po-
tenttal support lies behind 1t. The effect
OF this has been Utmost absolute rigidity.
LARGE BORROWING.
The continued large borrowing by rail-
road corporations has been viewed with
mixed sentiments. The continued ~ranquil-
lily OF the money market in face of these
demands and future requirements plainly
in view, has left little room for apprehen-
sion OF any construction Of credits on that
account. The publication of the Comptrol-
Iers compilation of national bank returns,
as or anuar y makes It evident that the
loan expansion Of the last few months has
New York increase for the period covered
reaching SIS .00o.O 900. with the aggregate for
the whole country showing only s44.O OO.0 900
in the bank loans outside Of New York
confirms the belief that the low rates for
money have been sending idle funds to
New York banks for deposit rates CT in
terest. thus, In q measure. forcing those
institutions to find employment for their
deposits. This condition deprives the rail-
road borrowing Of any menace to the
money market. To some extent Il has
been used as a indication Of the inten-
ton to continue plans of betterment. and
mus insure large expenditures for material
which would have a beneficial effect upon
Industrial enterprises. The placing of large
orders for steel rails by some Of the rail-
roads which have most persistently re-
strained from providing even for I'm
it is understood that in the placing of Or
any future dealings IN prices Of rails.
EARNINGS LOWER.
The railroad borrowing has another side
also, which gains imp~ressiveness from the
steady downward tendency in railroad
earnings Wall street has dwelt much
for a long time past on the large proper
ton of railroad earnings which have been
to betterments and permanent
improvements, which would not have a
prominent place In the operating expenses
where they have been figuring. The pres
ent borrowings indicate no Immediate
prospect OF reduction Of expenditures
ahead Of dividend claims. and in some
cases they are for the funding Of expendi-
lures already made and classed in charges
p earnings. Meantime the declining
tendency OF gross earnings continues, the
decline showing an increasing ratio ever
since last summer. For January and
February the storm and snow blockades
lions. n the same causes, operating to
the ratio Of operating expenses
even on the reduced traffic. make heavy
cuts in the net earnings of railroads,
The force OF argument that storm block
AIDES represent only temporary Interrupt
ton of trafdc which will ultimately be
moved has been somewhat weakened by
tho davQlonYnanf NJ rata TQro nm Oroin
traffic.
This dispute. originating amongst the
lines over the Gulf n Atlantic
regarding the dinerential for Philadelphia
and Baltimore rates on lake grain. Fears
are expressed that the trouble will spread
both east n west.
EFFECT OF RATE WAR
Cutting rates TO secure business is re-
garded as a pretty conclusive evidence
claims for congestion Of business
Offering. The falling OF in the demand for
money in the country at large is not an
upon the rate Of activity Of busi-
ness in general. The far Eastern war and
threat Of complications In h near
overhang h markst: out are regard
pally through the possible effects upon Eu-
ropean money markets. and the reflex eff
feet here. The adjustment OF Baltimore
Are losses has also come up for renewed
consideration. The miscarriage Of nego
for peace between the Pennsyl-
vania and the Wabash and the threats of
1 coming strike in the soft-coal fields have
been minor influences. Another represstve
influence is the possibility OF an early de-
cision in the Northern Securities case:
Bonds have been dull and heavy in a
harrow market. United States Is and the
Did As have advanced y and the Ss coupon
u per cent on call during the week.
WIFE WILL KILL HIM.