The St. Louis Republic., 1904-07-17
STOCK MARKET CONTINUES
IRREGULAR TO THE CLOSE.
EXCITEMENT OF SECURI.
TIES DECISION ABATED.
Advance Of 81. Paul Considered
Index Of Reaction From Alarm
Over Wheat Damage.

-N'H A'. n S-4E Us IECl4tllNt excite
ment over the Northern Securities deci-
sion had abated to-day and Union Pacific
and Southern Pacific were subjected 10
selling 10 take profits. But new points Of
strength developed In the market and re-
suited in an active speculation. The
irregularity continued up to the close,
Union Pacific ending the day AT a net de
cline Of IL, which was within !, CT the
lowest
Some OF the other features Of yester-
days strength showed the effects Of rea-
iizlnS. Revised opinions over the Northern
Securities opinion were that the existing
conditions had been little altered by it.
me most important factor of strength
In the market was United States Steel
preferred, its two points rise having cG
important sentimental effect on the whole
new department.
REACTION FROM ALARM.
The advance in St. Paul was an index of
the reaction from excessive alarm over
the damage to the wheat crop. The ad-
vance in that stock and in the Erie may
also be attributed to the recognition by
the professional element that they had
not yet enjoyed an advance commensurate
with that which has occurred in other
parts Of the list. and so offered an invit-
ing held for fresh operations. The sus-
tanning effect was taken advantage Of to
list
The bank statement stimulated the
market anew. All Of the expected gain
In cash was reported. bringing the re-
serves to new record figure. Loans
crossed the previous record touched in
May Last ana rose to the largest total
ever touched in the history OF the clear
ing-house, The placing Of the Phiiadei
pFia municipal loan Of Sl6C0p,O10 this week
hgures IN this Item The cash increase
left margin OF gain for the surplus of
$S,r-. = LODI
value. s2l7j.OO1
REVIEW OF THE WEEK.
The weeks stock market has shown an
i-nation and variety. and while the move
rlent Of prices has been constantly irreg-
ular. the market has shown a good alb
sorptive power and has taken well a large
amount of speculative profit-taking. which
leaves 1t in q strong position technically
If kept from unpropitious conditions,
which would induce fresh liquidation.
The acton Of the market has had a
notably encouraging effect on speculative
sentiment and has had an important infiu-
future Developments The uudertone OF
confidence has been so marked that dis
position was manifest to ignore happen
lhgs that would have sent a chill through
the speculative community a few weeks
ago. such IS the reports Of damage 10
the winter wheat crop. the meat packers
strike and some minor occurrences
The volume Of dealings reached total
again in excess OF those OF the largest
days business last week. and the average
price level reached the highest OF the year
and since the low point of the reaction fol-
lowing the prolonged liquidation Of last
year. 1t is accepted as evidence of stable
conditions in the market when the occa-
sional recoyeries in prices do not stop
short of the level touched on the preceC-
ing upward movement. and when the occa-
sional reactions do not extend to the
depth touched on the preceding down.
ward movement. This has been the record
OF the successive movements since the re-
covery set in from the low-leyel period.
which was touched in the fall Of last year
PLAN OF CAMPAIGN.
The course Of the market during the last
.wo weeks has had the effect Of driving
In Il large outstanding short interest which
has maintained its position through Z
number OF advances. on the assumption
chat prolonged period of industrial de
preston and contraction was to be faced
The action and organized campaign :or
the rise was undertaken with knowledge
Of this outstanding short interest and
with a purpose to profit by its necessities
at the higher level OF prices. But the sue
cess of the campaign is none the less evil
dence OF the sold-out condition which has
been reached. and the hopeful feeling.
tempered by some remaining uncertainties
70 which speculative -,niiment had at
-ained
The expectation OF the handing down OF
the Northern Securities decision was an
influence throughout the week with cul-
!1inatirg effect when il was announced
The growing seriousness of the view TAX
en- OF the damage to the winter wheat
crop ultimately commanded attention and
aggravated the pressure to take profits
in the grain-carrying railroads. Even
then the stress laid on the prospects in
other crops served to offset TO some ex-
cent any anxieties over the wheat crop.
EXPORTS.
The real Importance to our financial re-
sources OF the amount of surplus wheat
which We may have for export commands
attention by reason OF the showing OF the
foreign trade for the year. Out of the
last years crop of sSs oso.0o bu- the fiscal
years exports have reached only i4.coD. eV
ou.. and the June exports OF wheat fell
10 the nominal figure of $4,000 bu. Prin-
cipaIly as result of the conditions in
the wheat trade. the value Of domestic
more than s70000,00o from those of the
previous year, and only the large increase
in the value OF cotton exports redeemed
the years showing.
whether the rate OF increase of our
own consumption has thus affected the
volume of our exported surplus. new
would be indicated were this condition
found to be cor tinued in the coming fis-
cal year. The week has offered rnateri-
al also for some comparison OF banking
conditions in the publication Of the Comp
trolIers compilation OF national bank re-
ports as OF JLne and the semiannual
reports of New York trust companies.
BANK RESERVES.
It is found that the national bank re-
serves are well maintained, notwithstani-
ing the years heavy loan expansion, the
excess reserves over the amount legally
required standing on June 9 this year at
slo4 912 925 as compared with sss ,301, l25 the
year before.
But while the excess reserves last year
BY the reserve cities stood at only sla.@.5.-
eS7 they have risen this year TO S52,57I. $50,
and last years holdings by the country
banks which stood at AI.052, ,S5s, have only
increased to So. 535,043
In other words. a much larger propor-
ton OF the country's excess reserve is in
serve against both the depositfng banks
obligations and those of the holding bank.
In the case of the New York trust conf
panies reporting. an increase in cash of
Sil 600 900 for the year is shown, but the
proportion of the increased cash which is
kept on deposit with New York banks. as
indicated by those companies. whose re-
ports specify that point Is considerably
over so per cent. these cash deposits also
York banks. This heavy increase in the
ultimate reserve obligations of the coun-
try on the reserve banks. and especially
New York banks. goes to explain the
conservatism which has marked the loan
market. In spite of the apparent plethora
of money In New York.
Bonds were irregular at times. but were
!, and the new Is coupon \ per cent on
call during the week,