The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-04-03
.CLEWS SAYS LONGS
/. PARTED WITH STOCKS
On Decline Last Week Bulls
Threw Over Heavy Loads
on Market
Special to The Globe

Speclal TO The Globe
New York. April 1.-The drift of values
on the stock exchange during the week
was as a rule irregularly downwards.
Occasional rallies. based chiefly upon
short covering. gave the market tenn
porary appearance of strength; but wide
spread liquida ton was quite evident
An important factor in the market was
that some of the leading interests parted
with considerable amounts of stocks at
quietly encouraged the decline to admit
OF buying them back at remunerative
prices. March is usually a month favor
ing Such operations lower condition of
bank reserves. temporary fiurrieS in mon
ey and the calling i'll of loans all favor
ing bearish manipulation. large portion
or the professional traders always an in
huential element in the situation have
also lately favored lower prices for the
reason that at the recent high level spec
ulative operations on the bull side Of
Tered Inadequate profits compared with
the risk. These are all temporary infiu-
ences; yet for the time being they are
uppermost in spite of satisfactory con-
ditions outside of the stock market. A
decline of to 10 points has already
taken place in some-of the active shares
but that is not much in view of the eX-
risen during the last twelve months.
While the reaction has been greatest in
these high priced securities there has been
little depreciation in other classes. An
a brief period at least; or until the April
settlements are adjusted and bank re-
serves begin TO rise again. Last week the
surplus reserve was down to 50. 600. 000.
compared with S27 GOO 600 a year ago:
and the probability is that had it not
been for severe contraction in loans the
entirely erased This week an unfavor-
able bank settlement is anticipated due
10 Withdrawals of government funds and
April settlements; but much depends
no in he oil
market liquidation suggesting further
shrinkage in that quarter. Subscriptions
to the Japanese loan. however brought in
considerable funds from out of town.
Indications point to somewhat better
rates for money in the future. The large
new capital issues Of one sort or another
are making heavy inroadS upon our sur
plus capital. Several hundred millions of
new bonds have been issued since Jan l.
and this process cannot go on indefinitely
without tending to depress security val
ues later on and to stiffen money rates
fortunately the situa ton abroad is ia
vorable to American finances Europe is
better disposed towards our securities
than for many years; American credit
stands high. and any important advance
In money rates here would quickly start
gold imports. There is however little
are more likely to ship considerable
amounts of gold in payment of the Jap
aneSe bonds, the decline of produce ship
ments and our large imports strengthen
in the money market will be the with
drawals of government deposits. estmat-
ed at twenty to twenty-five millions; so
that the extreme ease of money i'm the
past is hardly likely to be repeated dur
ing the coming months. especially when
crop moving demands begin.
Peace rumors strengthen week by week.
and While Russia may reject all overtures
for time. just for effect. il is certain
the end is not fer distant. RusSil's
finances are near the exhaustion point
h.a,s frsin
further assistance. Contrast Russia'S
credit with Japan's. Russia has issued
only about $250.000000 bonds during the
war. but her last issue of S195.OOO Geo
was fatty turned down in every money
market in the world Her bonds are
steadily declining in spite of the most re-
maTkable support from financial inter
eSts ever witnessed Japan. on the other
hand. has issued about $3.50. 900 600 bonds
including this weeks loan. which was
oversubscribed many times the first day
offered; while Japanese issues are stead
ly rising, partly owing to success in the
field and partly because their credit was
underestimated at beginning of the war.
what the effects of ending the war will
be il is difficult to fOresee. There will
undoubtedly be rapid expansion of com
merce and industry in the far east; Japan
will recuperate quickly; but how Paris
VIII get over the strain now endured re-
mains TO be proved. When the war Is
over there will be less occasion to sup
port Russian bonds than now. and they
to distribute their heavy load. Fortu-
nately Europe. and France especially, is
enjoying prosperity and is better able
than usual to withstand a crisis. but the
danger point is by no means past, and
that is why France refused assistance to
her old ally. 1t should also be remem-
bered that London did not recover i'm
mediately from effects of the BOer war.
both depression and recovery being much
delayed. Only recently has London
emerged from the shadow of that con-
fict. Now sunlight begins to shine for
the first time since the war period and
is reflected not only upon the money mar
ket but also upon the general business
situation. The announcement of peace
would certainly have an eXhilarating eff
feet here as well as all over the world,
especially in Paris. depression in Rus
STA. however. must necessarily follow. as
not only is the nations credit impaired.
but what is still worse. it's pride has had
big fall-sad for Russia. but of great
benefit 10 the other European nations.
France may not unlikely desert Russia