The St. Louis Republic., 1904-07-24
CONSPICUOUS SUBSIDENCE
OF SPECULATIVE INTEREST.
UNDERTONE is STILL QUITE
FIRM.
Feature of the Day Is the Firm
ness of Iron and Steel
Stocks.


the short session and the rush from the
city for the weekend holiday. But the
limit to the present active movement was
pretty clearly shown by the dullness yes
terday.
There was the same hesitation of prices
to-day. hut the undertone waS firm and
there was little pressure to sell. simply a
cessation of the recent large buying in diff
ferent quarters or the list. The settlement
of the incident OF the Russian seizure IN
the Red Sea seemed 50 We'll defined as to
leave little Suristce ground for uneaSineSS.
1t Is probable however, that some repress-
i've effect is still felt from the sudden pos
sibilities OF trouble developed by the Incl
dent.
The only feauture In to-day's market
was the special ttrmneSS OF the iron and
steel stocks. United States Steel preferred
added "a TO Its weeks gain. and the stocks
of the independent companies made some
sharp advances. Rumors emanated from
the neighborhood of the meeting OF presl-
dents of the United States Steel subsidiary
companies which increased the conjectural
earnings for the second quarter OF the
year to S20,0OO,0OO.
The bank statement reflected all of the
expected gain in cash reserves and Carried
that item. as we'll as loans and deposits,
TO new record figures. As nearly half of
the Increase in deposits was In cash, there
was q margin OF increase in the surplus
unusual figure of xo609600 The offering
of call loans this week to below per cent
is thus easily understood. The market
closed Irregular and at small conditions.
Total sales of bonds, par value. 81 09o.cS.
REVIEW OF WEEK.
The stock market has been very irregu-
lar throughout the week. and Its OCCASION
al strength has been manifested in n very
spotty manner. The impression made upon
speculative sentiment, however, has been
to increase confidence in the underlying
strength. Professional operators have
held to an opinion that a normal re,
action after the considerable rise in
prices was overdue. and the attitude to-
ward the market has been one OF con-
slant suspicion. 1t is usual for the Sc
curities market to be left top-heavy after
SO considerable "a speculation for the ad-
vance as that which has carried prices to
their present level, and the first sign Of
reaction is likely to bring upon the mar
ket a flood of belated protit-takirg or sales
by speculative buyers at the top. TO save
losses with the sold-out bulls. adding sales
on the short side to force the reaction and
get back stocks at a lower level.
While the weeks market has shown
many signs of instability and prices have
wavered constantly. the movement was as
decline. The effect has been to impress
sentiment with the strength of the forces
behind the market and to encourage hopes
OF an early redemption of the advance.
The small effect produced upon prices by
happenings which seem to have a posi-
tive bearing against values has the same
encouraging erect.
NEWS DEVELOPMENTS
One Of the most notable features of the
present rise in prices has been the indif-
ference toward news Developments. Thus
during the week there were numerous IN
cidents that would have upset speculative
confidence in an ordinary period of doubt
and uncertainty.
Monday morning brought set of opin-
ions from Western railroad traff1c officials.
1yh htNh Nil ofv,tx dp,iff tod thatr han
sion that the crop damage had caused
halt In the revival of confidence in busi-
ness. which threatened another period Of
hesitation and curtailment, with resultant
effect on railroad traffic.
The crisis suddenly developed in the re-
lations between Russia and Great Britain
over the seizure of vessels in the Red Sea
revived all the worst potentialities of a
spread to the great Powers Of Europe of
the armed conflict in progress in the far
East.
directors the unceremonious refusal even
to consider a conciliatory proposition look
Ing to a settlement of a dispute between
ground for an u assumption that st the ISSUE issue
Joined between the two parties of the con-
tro! OF the Northern Pacific and of the
Northwestern Railroad situation can only
be settled by the success of one or the
other party. There is no question in Amer
lean financial affairs which has caused
SO much dread and anxiety as this. Yet
feet rather than otherwise upon the mar
ket.
The blunt assertion by the leading organ
In the iron trade that the Improvement
had been taking place chiefly In wal
street" did not prevent United States Steel
preferred from supplying one Of the prin-
ctpal sustaining influences in the market.
The damage to the wheat crop in the
Southwest was similarly ignored on the
Stock Exchange.
INFLUENCE OF UNION PACIFIC.
In looking back over the recent upward
movement 1t is easy to perceive what q
dominant influence has been played by
Union Pacific. The dimensions Of the
transactions and the extent of the move
nent In this stock carry easy conviction
that the insiders and banking interests In
ings. This involves one of the principal
groups of capitalists which make UP the
dominant control Of the great railroad
SO signal demonstration OF confidence
In future values as was implied by this
operation undoubtedly did more to instiil
feeling Of confidence into the general
temper than any independent study Of
conditions. other than the drawing of In
ferences. could supply. The advance has
that II was following well-informed leader
ship.
The plethora OF the money market has
been a contributing cause Some anoma-
capped discussion. however. The conges-
ton In New York is seen TO be largely In
iuenced by conditions In the local bank
ing situation, which are the outgrowth of
the prosperous period of the last few
months and the large increase In banking
competition. Inducements to deposit both
by outside banks and trust companies and
by individual depositors. remain in force
In the present stagnant money market and
throw the burden upon the New York
banks of finding employment for idle re-
serves in order to meet the charges for in
terest allowed. while also increasing the
obligations upon them for meeting ulti-
mate reserve requirements.
NO RELIEF FROM TREASURY.
Obligations by New York banks to other
banks and bankers are larger even than
usual. so that interior needs for the crop
moving will enable outside banks to draw
more freely than usual on New York re-
serves.
The large increase in the excess OF Gov
ernment expenditures over receipts has
led to semiofficisl intimation that the
Treasury will not be in condition to af-
ford relief to the money market this au-
tunn, and the depletion of the Govern
ment's available cash balance even leads
to discussion of a possible necessity Of
withdrawal Of Government deposits from
the banks.
The war scare has also led to a harden
ing OF foreign exchange. But the signifi-
canoe of the accompanying news of the
shipment of 81. 600 0G0 in gold from Austria
liza to San Francisco is not to be lost sight
of. The demand for remittance from New
York may be regarded as based in part
upon the expected receipt at San Fran
cisco.
There has been occasional hesitation
manifest in the bond market. but the tone