The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1904-07-31
NEW YORK STOCK MARKET
RULES HEAVY AND QUIET.
UNION PACIFIC CLOSES
WITH 4 DECLINE.
Holiday on London Exchange
Chief Among the Causes

$1,000
of the Union Pacific determined the gen.
eral tone. This stock closed at the lowest
Of the day at a net decline of sc.
II may have been Influenced by the refu-
sal of the presiding Judge to allow a divi-
dend distribution on Northern Securities,
pending the decision OF the suit over the
distribution of assets, but the dominant
position held by Union Pacific all through
the recent advance makes it especially
vulnerable to any reactionary tendency.
The holiday in the London stock market.
with another in prospect for Monday, de-
prived New York of its usual initiative
from that source, which is especially re-
| lied on just now on account of the political
situation in Europe as a factor IN the Sc
curities market. This was Of great influ-
euce in causing the extreme dullness of
the day.
CROPS AND LABOR.
Unfavorable crop weather in the North
west and another strong advance in the
price OF wheat were not calculated to
cheer speculative sentiment in stocks. and
there was no amelioration reported in the
strained labor situation. The expected
large addition to the record bank reserves
was viewed with Indifference by bankers.
owing to the unprohtaOie rates prevailing
for loans. and with uneasiness by specu-
lators as rejecting continued ~stagnation
OF business activity. Bankers are quoted
as preferring to hold their reserves Idle
rather than to attempt to put them ont
In loans at the present unremuneratiyr
rates. and the decrease of s., l.03 In the
loan item OF the banks bears out the sin
ceritv of the assertion. The market closed
inanimate and heavy. Total sales OF bonds,
par value, $4,000.
REVIEW OF THE WEEK.
Som active speculative liquidation has
developed in this weeks stock market,
and a sharp reaction in prices resulted, IN
marked contrast with the dull resistance
to pressure which was the feature of the
market last week. and since the recent
advance n prices began to awaken sus-
picion and intinidate further efforts to
put up prices. The reaction was agra
waited by some OF the happenings OF the
week in the world of affairs. but it was
inaugurated before these became an in
fiuence and began in face of some very
favorable news. Railroad officials in their
published utterances on Monday showed
a sudden revulsion in sentiment from the
discouraged tone OF the week before. and
spoke in a very cheerful tone of the short
lived effect OF the wheat-crop scare on
traffic offerings and on business senti-
ment in their respective territories.
The crop news of most of the week has
also been good. the Weather Bureaus
weekly bulletin or Tuesday serving TO al
ldN INUCn OF the anxiety over Uue udIndSe
lone to wheat. while reporting an ex-
tremely hopeful prospect for corn and cot
ton. But this did not avail to persuade
the speculative holders who had bought
their ability to dispose Of them at a profit.
and the unloading process had already be-
gun. With the position of the market
thus made vulnerable, the sudden and Sc
we're tension in the relations Of Russia and
Great Britain over the seizures Of mer-
chant ships was OF acute effect.
EXCHANGE RATE.
The sudden bound in the exchange rate
to the gold export point was the most i'm
pressive result. of the apprehension Of the
New York market The rise in the Lon
don money market. which was the i'm
tributable to the wal scare. The London
money market was considerably involved
in undertakings to new issues. which
proved hard to digest. and as the relax
the fiscal year failed to develop. the war
scare came on a weak money position
there.
In our own market there had been con-
siderable sales Of sterling exchange in ex-
pectation Of an early movement
In quantity OF grain and cotton. which
est in exchange. Offerings Of commercial
bills OF exchange proved to be very light
and something like a scramble among the
shorts in exchange followed; SO that on
ee'hNA y ~ ~
figure a small profit for a short time on
gold exports.
The rate of exchange relaxed with the
passing OF the acute crisis in the Anglo
Russian relations.
GOLD EXPORT.
But the exchange situation still leaves
an early export movement of gold within
the range of possibility. 1t is not the
prospect of a moderate outgo of gold that
intimidates sentiment. as is shown by the
equanimity with which the coming re-
mittances to Cuba on account of the loan
subscribed here are regarded. but II is
the evidence afforded that there may be
an obstacle to the usual resort Of this
market to foreign money markets for
funds to move the crops.
The present redundancy Of New York
bank reserves has some sufficiently
anomalous features to prevent its entire
money situation especially to the minds
Of holders of stocks on margin with mon
ey borrowed or call and certain to be the
fist recalled to meet interior demands for
crop funds.
The July 1 statements Of the New York
City trust companies to the State Comp
troller show that their cash deposits In
banks, on which interest is allowed. have
from s1os. s1s, ess on July l, 1903. to seos, 49,
leans for the same time have decreased
more tina 81, 900. 900.
With call money lending at / per cent
or under. the rate of interest allowed on
deposits by the banks is the more profit |
able to the trust companies. But it is
Known that the trust companies have in
vited large deposits for interior account
during the last year. which will be SUBJ
lect to recall to meet the fall demand for
funds in the interior. in common with
deposits with the banks.
BANK RESERVES.
In the existing condition the banks will
have to meet the call on reserves. both on
their own account and on account of the |
trust companies. There is also the con- |
tingency' that with a rise in the call on
loan rates trust companies may withdraw
their deposits with the banks to put out ;
loans on their own account at the urofita- |
BILE rate. In the meantime the amount Of
Government expenditures over receipts
for this month rose at one time more than
s21 900. 900. compared with less than 81. 0C0.O c0
for the corresponding period of last year
This carried the Governments working
balance decidedly below the traditional re-
quirement and gave point to the discus
sion of possible withdrawal of Government |
deposits with banks. The bad effect on the
market OF the quarterly report of the
United States Steel Corporation has been
part of the weeks news.
The low figure of the untitled orders on
hand. the normal dullness of the third
quarter of the year in the steel trade.
Of the allowance for depreciation. are the
upon which criticism centers. The
abor outlook. especially in the meat pack
the cotton milling and the anthracite
Industries. has weighed upon the market.
The net result has been to bring into
the wisdom or the warrant Tor
the recent large in prices of
and to prompt reselling.
Bonds have become dull and somewhat
-eactfonary.
United States Is have declined &c and |
he 3s registered and new Is 4 per. cent on
all since last week