The Saint Paul globe., 1905-01-22
NOT AS GOOD AS
TRADERS EXPECTED
ST. Paul Jumps Two Points
and Then Drops Back
Money Easy

Money Easy
NEW YORK, jan 21-There was
good deal of commotion and some con-
fusion in the active two hours trading
of today's stock market, but the inpor--
tant changes on the day were confined
to a few stocks. The further buoyant
rise in the Northwestern Changers was in
connection with another jump in Northern
Securities on the curb. That stock shot
up to new high record al 149 and it was
accompanied, as on it's previous advance,
by Interborough Rapid Transit, which
made sensational spurt to 1919. The
latter movement awakened little response
on the stock exchange, but the North
ern Securities movement was evidently
responsible for the rise in st. Paul.
Northwestern and it's subsidiary stock. A
number of dormant investment shares rose
many points on single transactions. The
general level of prices. however, was
maintained with difficulty and gave way
entirely on the appearance of the bank
statement disclosing an unexpected loan
expansion of $34,474700.
Loans Increase Heavily
This is far in excess of any previous
weeks increase in the loan item during
the history of the clearing house and it
was further notable for the fact that the
Increase in loans has been made by the
three or four largest banks in the clear
ing house. in which are usually concen-
trated the great financial and syndicate
operations of the country'S most power
full groups. Nothing has appeared on the
surface to indicate into what channel this
enormous extension of credits may be
turned. There have been several bond
sales during the week but not sufficient to
account for the proportions of the loan
expansion. Some part of maturing Ameri-
can railroad notes and bonds held abroad
and it is known that the cheapness of
money here has prompted bankers to en-
ploy funds for the purchases of large
amounts of bonds held by European in
vestors which are to fall due in short
time. But there will be room still for the
supposition that some great project of
corpora ton finance is in process or being
worked out. Compared with this weeks
great loan increase that for the week end
ing Jan. % last year comes nearest to
an equal amount. when the bank loans in
creased S30,669,3o0. The only other paral
lei occurred during the spring of 1901,
preceding the great fotation era when for
several weeks the clearing house banks
made Increases in the neighborhood of
[ $50. .G00,000 in their loans. Louisville &
Nashville purchase and the placing of
large issues of short time railroad notes
caused ia last January's great loan expan-
sion. Today'S stock market closed active
and easy. Total sales of bonds par value,
SIS, $50, 000
Trade Expansion
Dealings at the stock exchange this
week have expanded to an average of over
a million shares a day, and the growth in
the volume of the bond dealings has been
even more notable with an increased
health in the demand for investment is
sues along with the continued activity in
the more speculative bonds. But the tone
of the stock market has shown much ir-
regularity and unSettlement. The vola-
tile spurts in few very active stocks
have not carried the general list along
with them and the special movements
have served to beget doubt and suspicion
rather than to encourage general demand
for stocks This was due to the appre-
hension that professional speculative op-
eratlonS were largely responsible for the
congested activity in few stocks and to
the doubt of the genuneness of much of
the activity. The public share in the op-
erations, tending to a distribution of
lieved to be small. The vagueness of the
rumors given to account for these move
ments and the failure of confirmation for
them fostered this feeling. The buoyant
rise in Union Pacific quite distinctly cul-
minated above 120, which it crossed on
Monday, and the stock was under persis-
ing the market without the stimulating
effect of it's leadership in the advance. At
the same time the failure to develop of
the expected plan for readjustment of the
western railroad relations and settlement
of the Northern Securities contest caused
disappointment.
= Readings Antics
Reading then went through similar
course of procedure rising at one time
above so and then dropping back under
many plausible explanations for this
| movement and the spasmodic character
| it took on became a positive drawback
to the market and fears arose that the
stock had been practically cornered,
threatening heavy losses to an uncovered
short interest From Reading the move
of the list with diminishing effect on senti-
| ment. Much remains of the extreme
gains of the week for some of the leaders.
but the general level is not much changed.
The course of the market from day to day
was much more Influenced by these Spe-
cial movements than by consideration of
general conditions and prospects of
financial and Industrial kind. Regarding
these there was confusion and uncertainty
in the Interpretation. This was partly
owing to the inconsistency of some of the
developments The settlement of the long
standing strike of New England cotton
operatives was considered highly encour-
aging from every point of view. The de-
preston therefere~is regarded as one of
the few clouds on the Industrial outlook
and the presumption of operations is of
promise in the absorption of the great
cotton supply; which has forced prices este to
to this influence was the threatening of
strike of trainmen in the. Pennsyl-
vania service The extraordinary de-
mands for iron and steel has pointed to
highly prosperous conditions in that in
duStry and current estimates of the earn
ings of the United States Steel corpora
tion for the December quarter have been
raised. But the stocks have failed to re-
spond in the market
Money Market Undsturbed
The money market has been unruff1ed
by all adverse influences, such as the
withdrawal of 10 per cent of government
deposits from the national banks and the
continued outflow of gold to foreign mar
kets. But the heavy influx of money from
the interior to this point has been suffi-
cient to glut the money market. Doubts
have arisen whether this large return of
money is consistent with the supposition
that interior trade is maintained at its
full activity. The falling off in railroad
traffic and the easing of the car short.
age reported by traffic officials give color
to this feeling and the gross earnings of
railroads for the second week OF Jam
uary do not retain the excess of recent
showings over last year. The gold pro-
duction of American mines for the year
just closed is found to have risen to a
new high record. 1t is believed that some
light is thus thrown upon the freedom Of
the outward movement of gold, although
some stress is laid also upon the possible