The Saint Paul globe., 1904-12-18
CONFIDENCE GROWING
IN STOCK MARKET
SteeIStocks Show Conspicuous
Strength Closing Irregu-
lar, but Firm

NEW YORK, Dec. 1.-THE stock
market gave evidence of further
day, but when Amalgamated Copper
began to run down hill in the final
transactions the whole market prompt
ly responded, thus demonstrating the
influence still held in the market by
the stock and by the operations that
have recently centered in it. The clos
ing was in consequence weak. The
most conspicuous strength of the day
was shown by the United States Steel
stocks, regarding which there were
many reports current of an intended
resumption of speculative operations
for rise as well as of large orders
for steel rails and other products.
Leather Heavy
The announcement of the reorgani-
zation plan of the United States
Leather company was the signal for
some heavy selling of these stocks
which seemed to indicate dissatisfac-
ton with the plan on the part of the
stockholders. The weakness of these
shares had some effect on the general
list, and the advancing tendency with
which the market opened was not re-
sumed until effective support was Of
fered to the leather stocks. The final
selling movement left many stocks be-
rather narrow throughout except in
special stocks for the most part not of
first Importance. The $22,000000 loan
contraction disclosed by the bank
statement was the result of the stock
market liquidation Of the latter part of
last week and the first part of this,
which would be reflected fully in the
averages of this week. The nominal
change in the cash item was about as
expected.
The raising of the surplus reserve
item by over 100000 to above the
figure of the corresponding week for
two years past need not be a matter of
Indifference with gold exports in prog
ress and the end-year experiments ap-
preaching. But the extreme ease of
neglect of the figures of the bank
statement either way. 1t was after the
appearance of the statement that prices
began to droop. Sterling exchange was
strong and rose to points. Total
sales of bonds, par value. $2.030.000.
Market Well Supported
The opening of the week gave every
appearance of a renewal of stock mar
ket decentralization in as acute form
as that of Thursday of last week. In
fact the closing prices on Monday were
far below the closing on the preceding
Thursday, owing to the entire lack of
resistance in the market. There were
some stocks which got lower than the
lowest of the preceding Thursday in
the opening break on Tuesday of this
week. But at that level powerful sup
port was accorded the market by meas
ures concerted amongst the great
financial interests to save the market
from disaster. There was good re-
sistance during the rest of the week
and halting recovery, but with occa-
sional symptoms of alarm and constant
evidence of tinidity. A progressive
subsidence Of the activity in the mar
ket was another sign of the speculative
sentiment it had been subjected to.
Confidence is pretty general in Wall
street that with prices above the low
point touched on the dip the market is
cleared of weak holdings and secure
against pressure of forced liquidation.
But the fear is general that a fall to
below that level would precipitate
enormous new offerings on the market
by fresh wiping out of margins and
uncovering Of stop loss orders. This
was the especial reason for the Strenu-
GUS support of the market on Tuesday.
The action of the market during the
week has given an occasional evidence
of the liquidation OF the belated long
accounts which were able to hold
through the panicky break last week,
but were under pressure to be reduced.
The nerves of operators in stocks have
been kept at some tension by the vocif-
erous methods pursued by the self
proclaimed leadership of the bear party
reinforced by the prestige secured by
the signal success which seemed to at
tend these methods. Large attention
has been centered in the financial dis
trict on the lurid proclamations and
counter proclamations incident to the
conduct of the campaign, which has
extended into foreign stocks.
Conditions Improve
The facetious opinions which were
pfofessed of this episode in the market
did not wholly conceal the anxiety
which it caused. Meanwhile there was
no change in the tenor of the news af-
fecting values of properties and the un-
interrupted progress of the improve
ment in conditions. The recovery of
the foreign exchange rate to the level
permitting SOlu 0ApCIlS Was WlluUCi
apparent effect on the money market,
which would be the direct channel for
effect on the stock market. The course
of foreign trade for November, results
of which were reported through the
government agency during the week, is
regarded as adequate explanation of
the movement. The excess value of
merchandise exports for November
proves to be less than for the preceding
year by over $40 1000, 900.
But this showing is due almost who'll
ly to changes in the import showing,
notwithstanding the notable fall in
value of exports of breadstuffs and of
cotton. The value of imports reached
$95, ,157 ,656, which is close to the maxi
mum for any month and compares with
total of $77,000,O00 in November of
last year, which was the smallest for
any one month in over two years past.
On the export side the cotton exports
compare with. the period last year, when
10.