The St. Louis Republic., 1904-05-02
Poor Business and Easy Money
Cause Stocks TO Halt
and Hesitate.
SWING TO LOWER PRICES.
Tendency Is Unmistakable.
Though Operations Are Cur
tailed and Business Appears
Professional in Nature.
REPUBLIC SPECIAL.

New York May L-lrresolute and unde
cided- the stock market for the create
| part OF the week halted. as though urahI.
10 determine In what direction the next
move would be Expert market observer.
advanced the theory that securities hrns
notioniess. or Substantially 50, as a -
suit OF conflicting Influences. poor brss
ness upon the one hand. easy money upor
| the other
Between these tvo forces. at h-st. eoui
po-se seemed fairly well maintained. but a
the last cumulative inaUerce OF Al IN
favorable nature swung the balance Z,
favor Of lower prices The tendency va.
unElistakable. though operations ve-,
much curtaiied and Business appeared I,
Be largely professional In nature.
II Is not much 20 De wondered at ,ha;
STOCKS worked lower They have exus-
rienced a very substantial recovery from
TIE 10" prices OF last September. OF even
of March and though general business
upon either OF these occasions vas not
what IL had been there were no srch svi.
c-rces ot severe and widespread CONNER.
CA and Industrial reactions as are row
erowclng Upon business men AID financial
Given two such Influences as POOR b7,st.
ness and easy money. IL requires no e-p@r-
10 determine which will gain The ascend.
aac!- Cnoer such conditions speculative
prices Particularly II they are at a fair!y
high level viii rece5s through icanItiCn- i.
FOR no other reason
II vas noted that. while the prices Of
speculative securities were for the most
part saggirS lower. the better grade OF
bonds wsAs nEp-oytng- This Is al ercour-
aging sign. Not that the movement has
Es. ieaehed a stage that foreshatoss an
immediate change IN the situation. but 1;
L e development along the proper lines
and one that works relief IN tine Ire
SECTION OF high-grs6e issues and their
and Year rather than confidence are still
controlling forces in the market
SAFETY IS CHIEF CONSIDERATION.
Men are anxious 10 preserve the p-in-
Gpai or their Investments. Thsy care
more for safety than for income Hepce
sucks larguish while bonds improve
CAUCUS men are taking no chances aid
saoS elear!y enough, n the weeks dsvel-
opi tnts that they have no desire for
Speculative ventures at this time
Inc moderate Improvement In the bood
market seems natural enough. aot ONLY h,
the inability OF some Capitalists and irs5i-
tSaons 10 employ money 10 ADVANTAGE
elsewhere But that the hord business has
not yet gotten the Eeadway and swing
mat foreShaoow q restoration of con-
ncei-ce. Is clearly crozSh indicated by the
nAoiAty Of railroad corporations to Hoat
tneir bonds, BY their recourse 10 short
uIIe notes, even during the last week on
an income bezs Of "a per cert. and b.
tie dtstrcsination, which Is marked. Of
anyone TO purchase speculative or second
The untiges,ed things are stin undi-
gested- and they bid fair to continue so
Ior a long time 10 come Scores of
n-st-ciass properties are merely awaiting
OF millions Of the hest are a<aitiur Is
saance- and hundreds Of millions In notes
and snort-ttne Obligations are awaiting
turtner opportunities There may be i'm
proFenent- but no runaway band mar
kst- for there viii be plenty OF bonds 10
so around during tie next year or two
MONEY Is AcCUMULATING.
Whatever else may Be obscure5 or con-
fused in the financial and Industrial world
Al the present time, the TWO facts are OBJ
vious that business Is contracting and
no,.ey Is acsumriacns TO degree which
MAKES wealth an embarrassment 10 banks
and financial Institutions II no longer
requires the careful collation. and scrutiny
OF commercial and Industrial statistics OF
TIE Study OF the various tndicsa os trade
TO determine the question os busiasss re-
action L = talked about in the clubs
and cafes. On street corners and In public
men meet and compare notes. Reaction
Is recognized as a present condition not
IN economic possibility OF academic the
ortsts II IS the inpsIing force and con-
one. can tel to what extent IL viii affect
markets. for no one can determine TO
Shar extsnt past declines discount the
prevailing conditions
II means much to Wall street and the
business community IL X can determine
thus earlv whether the present interval
OF industrial contraction is the result of
the stock collapse or due TO other causes
An argument upon the point could be sus-
t2ined on either side In the accumulation
Of money. the falling OF in business. the
defslcatioas OF bank clerks. bank failures
Increasing commercial defaults and grad
ual sapping OF confidence IL contains ev-
cry element OF depression following a
crisis.
Wall street prices may have discounted
much OF what is now developing in indus
trial quarters. but there Is no certainty
as to that. for IL is one unpleasant fact
IF the study OF crises and dspreszions that
crtses co rot always p-ece1e. but that on
occasions they develop midway in the
period OF depression, as the crisis did in
he year lss4-
In time confidence viii come hack. and
Z viii manifest itself IN the security mar
xet first But there are too many uncer-
.zinties In the future TO lead to the osises
hat that time Is yet at hand