The St. Louis Republic., 1904-05-22
CLOSING HOUR PROVES
STRONGEST OF THE WEEK.
AVERAGE OF WEEKS MOVE
MENTS ON SIDE OF GAINS.
Bank Statement Proves Il Sur
prise and Stimulates Buying
Movement Which Lifts Prices.

I New York. May 2i.-The last hour of tho
/ weeks trading in stocks proved To be the
| most animated and the strongest Of the
! whole week. The days moderate gains
were sufficient TO decide the average for the
weeks movement ON the side OF gains.
| The bank statement proved an agreeable
surprise and impelled the lively buying
movement, which lifted prices smartiy.
The movement WAS sudden and had not
| spread far liz the list when the end of the
session put an end t. II. The closing was
strong and at tine top Level Tn. rather
sT.aSinOllc movements M one or two stocks
Indicated some distress on III. part OF sur
prised shorts. An inklinG of the heavy re-
uuctiOH IN The loan item gOi abroad before
the publication Of the bank statement and
started the bUvinG movement.
The loan reduction Is pretty clearly due
to the resort TO the exchange market TO
the selling Of long bills. the proceeds Of
which have been lent there. presumably
uisplaclng loans with the banks. The
process involves borrowing In London to
meet the sterling bills when they mature
there II l. evident, therefor. that the
export OF gold Is not longer profitable as
simple exchange operation. and the early
termination of the outward movement OF
gold Is believed t0 be thus foreShadOwCd.
The Limitation of the cash decrease OF
the banks to s1,GSj.3,D in the week of the
record exports OF &l5.JNcc in gold IL con-
v!nciug evidence of the effective offSrtt!lg
factors To- that drain which are IN opera
ton. The net result Is TO leave the sur
Plus reserve OF the bank, unim1lired.
IotaI Sales OF boriS, par value, sysp.vr
LISTLESS DRIFT.
The listless drift of prices. OF stocks is
the index of the formlesss state Of spec
ulative sentiment over the outlook for
values The outflow OF gold may be ac-
counted for by special causes. primarily
the Panama Canal payment and American
SUBSCRIPTIONS to the Japanes-a and russian
loans. II i now freely conceded that tne
pro- et-dS Of these Sub~criptiouS ar. Ia b..
remitted in full to London. These three
Items would call for about SsDNa.-l in
the exchange market. Al the same time.
severe decline IN the value OF exports Of
gram and cotton for several months r.
duct-d the available supply OF commercial
exchange. throwing the remiIterS back Oh
the necessity Of exporting gold. Our sup
pay Ui gold was really redundant at the
time. japan had made payments for war
material ana, supplies from this coun-
Iry by direct shipments OF gold to San
FrinClscO. and by reason Of this lniiOw
and the supply of the domestic and fICn-
dixie production OF god IL il estimated
that the total supply of gold in the coun-
try has been uniinpairgd. in spite of the
food OF gold exported from New York.
IL seems probable that the net results
OF the gold export movement will proye
small. IL Is pointed out that tn. large
reduction ~ Go:srnment deposits with
banks has released Il corresponding
amount OF Government bonds which We're
caused fail in the market price. The.
cheaper price for the bonds widenS the
pronts TO the banks on hank-note issues
and tends TO stimulate the issue of bank
notes in spite Of diminished demands OF
the circulation.
RAILWAY RETRENCHMENTS.
Railroad traffic officials are generally
agreed that the outlook for a revival OF
traffic IS not bright before the falkland
reports have been received of extensive
plans for retrenchments by the railroads
TO onset tn. losses in gross earnings. Re
ports of railroad earnings as they come
10 hand fully bear out the opinions .N-
pressed OF the declining tendency Of earn
ings and the effect has been depressing
on railroad stocks. especially those whose
dividends seem to have their integrity
threatened by the heavy declines In earn
-ngs
Advices from the iron and steel trade
agree IN anticipating n quiet SEASON in
the trade The crop news of the week
has failed TO AFFORD any support for
stocks
The bond market has been almost
equally dull ard sluggish with stocks.
United States IS, the is coupon and the
old Is hav. declined u per cent on call
during the week.