The Saint Paul globe., 1905-04-16
BANK STATEMENT
CONSIDERED GOOD
But No Factor to Market
Strong Opening, but Heavy
Realizing on Advance

teTuayS furious speculation in stocks
movement to take profits was indi-
caled 1or today and it developed ac-
cordlngly. Prices ended generally
lower than last night and the transcon-
unental group and stocks which have
moved In sympathy with that group
are not the least sufferers notwith-
standing the buoyant upshoot in the
first hour, st. Paul alone of the group
reserVlng meager gain on the day
a1ter having been at one time more
tnan points up. Union Pacific, New
York Central and Illinois Central were
also lifted a point in the early market.
but closed at net losses of over a point
Tor the first two and of 215 for the last.
In the curb market Northern Securities
itself was rushed up to $1.S5S, but fell
back at the last to $1.S15s The whole
market centered around these move
| ments and was not in any degree
responsive to any of the news develop
ments. A denial by the head of the
Great Northern and of the Northern
Securities companies of yesterdays
rumors of stock dividend by the for
| mer company had no influence in de-
terring the continuance of the rush to
buy the stocks concerned at first, nor
did the news favorable to values serve
to hold the later market.
Unrestrained Speculation
The trading represented purely an
episode in the progress of an unre-
strained speculation. The natural dis
position to diminish outstanding con-
tracts at the close of the week was en-
phasized by the possibility of a naval
engagement in the east over the Sun
day interval. The increase of bank de-
posits by reason Of the loan expansion
did not impair the surplus, as the cash
increase was more than sufficient to
q
tile reviews confirmed other evidence
OF active and prosperous trade condI-
tlons- The abstract of the country's
total foreign trade for March showed
that the increase in value of agricul-
tural exports receives a handsome ad-
dition from the increase in manufac-
tured exports, the combination being
suff1cient to almost equal the eXtraor-
dinary increase in the value of i'm
ports and to leave the trade balance in
our favor practically equal to that of
March in the preceding year.
The money market was nominal, as is
usual on Saturday, but foreign ex-
change moved up several points. Total
sales of bonds, par value, $1,990OOO
Speculative sentiment on stocks has
shown some disquietude at times dur
ing the week, but the power OF resist
ance demonstrated by prices to the dis
turblng influence has effectually neu-
tralized the effect and has been a main
influence in prompting the renewed ad-
vance. Buying back of stocks by .op-
orators who sold short early in the
week during the prevalent doubts over
the market has been a factor in the
recovery. The prosperous condition Of
business and industry in all lines has
been the potent underlying support of
the market. But a revival of force in
the rumors and mysterious intimations
OF important developments to come has
characterized the restored demand for
stocks as well. Belief in mergers and
wholesale readjustment of the railroad
map of the country has awakened
again as the prices mounted upward
The misgivingS of the early part of the
week had TO do with the speculative
conditions in the market rather than
with the conditions affecting actual
values of securities. Thus the govern
ment report on the April condition of
the winter wheat crop was a valuable
addition to the flood of testimony of
the great prosperity of the futures
promise. But it is widely believed that
large part of the great operations In
the stock market which have lifted
prices to their present high level have
been conducted by the same persons
who are attempting to carry through q
deal in the May wheat option.
Wheat Deal in Wall Street
The effect OF the government report
on wheat was to add to the difficulties
of carrying on the deal in wheat, and
there were evidences that liquidation
of stocks was going on as a measure of
protection by the conductors of the
wheat deal. The stability of the wheat
market helped to dissipate apprehen-
sion on this score, but much more eff
fective was the easy absorption of the
liquidation in stocks. On the other
hand, small offerings were brought out
when any active demand for stocks de-
Veloped. Another incident which de-
veloped the same kind of resistance
was the displacement from the di-
rectorate of the Northern Securities
company of the head of the Union Pa
cific system. This was a shock to the
speculative confidence engendered by
the constant rumors of the harmonious
plans for new projects Jointly contem-
plated by the two parties to the old
dispute in the Northern Securities
company. At the same time the sus-
picion got abroad that the Union Pa
ciflc's $100.000,000 preferred stock issue
was intended for belligerent purposes.
One of the few official intimations
which could be secured as to the in
tended uses of this new capital was
that lit was considered wise in time of
peace to prepare for war" There was
subject, as well as others, with the
change in the form of the stock mar
ket.
The supposition that the Issuance on
Monday of the supreme courts man
date for the redistribution of the
Northern Securities assets would be
the signal for announcement of great
readjustments of railroad relations,
sprang into full force again and show
ed all it's old power upon the specula-
tive Imagination.
The presence of the Russian fleet in
the China seas caused some reflected
unsettlement from foreign stock mar
kets and the effect on the international
money exchanges was an influence on
our early market. The renewal of the
Paris demand on London for gold and
the resulting rise in the London dis
count rate seemed to threaten an in
road upon our money reserve and to
defer the relaxation of our money mar
ket from the effects of the April l set
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