The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-03-05
OPENING WEAKNESS.
CLOSING RALLY
Spectators Realize on Expecs
tatiOn of Poor Bank
Statement


NEW YORK, March 4.-Not much inn
poftahce was attached to today's stock
market. Dealings were not large and the
tone was hesltating until the resisting
power OF the market was demonstrated
In the final dealings the demand took ON
some ANIMATION and New York Central and
Union racine rose strongly. This evidence
OF the elimination of the reaction i'm those
important stocks had a cheering effect on
the whole market and the closing was
firm and quite active. The attraction of
the presidential Inauguration accounts for
a number of abSenteeS from the floor Of
the exchange and had its effect on the
shrlnkage OF business, But there is per-
ttSP'IDie aiso a growing conservatism in
the views as to ACCESSIBILITY of a further
rise IN prices from the level now current.
Foreign News Brighter
The reflected influence from foreign mar
kets was brighter this morning and there
seemed less apprehension over the inn
nedlate outlook in Russia. The tradi-
tlonal view of the expiration of a con
sIeSS' especially where measures viewed
win d!squletude have been under con-
sheraton was of some effect in the
minds OF professional traders The am
houncement that a settlement had been
erected of the export grain rate war was
| received with great satisfaction as the
length TO which this controversy was
being drawn out threatened bad effects
on railroad earnings. The weakness OF
the bank statement seemed to have been
accounted for and the strength of the
market developed after its appearance.
Inc decline In the cash ite-n was slightly
more than expected. but the loan eXpan-
sion was regarded on the whole as mod
crate considering the magnitude of. the
sum OF the operations of this week and
laSt, which figure in the averages: Bank
eTs express the opinion however, that
money rates may work higher from this
50, 2S5. COO. says u JULIUS par value
There has been great deal of unset-
tlement In the stock market of the week
owing TO heavy profit taking sales The
recent speculative favorites have under
gone wide reactions and this influence
has been sufficient at times to overcome
that OF the strong new features which
nave developed in the market. The result
mas peen very active, but highly ir-
regular market. the volume of business
| having risen to the largest since the pres
ent active speculation was inaugurated
The character of the news has not
changed and there has been nothing to
indicate that underlying conditions of
business industry ard money have been
altered. But misgivings have arisen that
the rate of the rise in process of securi-
ties has been more than commensurate
with the improvements which it was
meant to measure
Suspicion has grown also that some
of the information industriouslv circuIatn1
during the last few weeks lacks founda-
non, or has been exaggerated for the pur-
pose of lifting prices in the interest Of
speculative holders. This distrust led to
precautionary measures on the part Of
large holders of securities on narrow
InaIglns ana with borrowed money, who
were simply waiting to get out of their
holdings at profit and who had no in
tentlon of permanent ownership i'm Sc
curlues for the advantage of the income
return The faVOrite measure of precau-
ton was the placing of orders with brokers'
10 sell their holdings for what thew wouId
orlnS IN the event of the price declining
the stop loss order of stock market
parlance: The knowledge of their exist
ence IN large volume IS pretty sure. to in
Vlte, the organization of a bear party
amongst professional operators who viii
sen STOCKS freelV and offer them ut de-
Ginning prices with the purpose of forcing
Ihe price 70 the figure at which orders
exist to sell When that is reached the
character of the selling becomes precipi-
tate and offers inviting opportunity to the
bears to cover short contracts at a profit
This has occurred on large scale during
the week. the sharp and sudden rallies
when the bears covered their shorts being
clines themselves.
Fears of Spectators
The mystery which is maintained on the
SuDJect or the important projects which
nave been alluded TO in the reports to ex-
plain the great rise in special stocks helps
20 foster the doubts and fears of specula-
tors. The concrete evidence to confirm
IN mem mas been confined almost entirely to
the widespread demand for stocks in the
market None of them has been given
to the public by official announcement,
tHe proportions or the absorption Of
stocks in the market has been so large
as TO impress credence in the working
out OF extensive projects affecting new
relations amongst railroads and the re-
actions in the price of the stocks of prop
critics pointed to in the rumors has not
DESTROYED all credit for the stocks
An important element among the active
operators in the market holds the belief
that the reactions are normal to. the
course OF a speculative campaign and do
not prelude the likelihood of prices set
a q higher viz
tinue abundant of the prosperous eondf-
tons i'm widespread field. The buoyant
condltlons In the iron and steel trades
and the enormous absorptive power of the
demand for its products make a notable
impression on sentiment regarding the
whole industrial situation although the
effect on the United States Steel stocks
has been belated. Bank clearngs
throughout the country are running at
unprecedented figures, those for Feb
ruary being far in excess of any previous
record for that month, in spite of some
declines in the south owing TO low prices
for cotton Railroad earnings are i'm
proving again, in spite of the drawing out
OF the rate war on export grain which
threatened to spread to import traffic in
the contest between Atlantic and gulf
ports for traffic.
The still unexhausted resources of cap
ltai and the ease of the money market
are potent factors In sustaining securi-
ties and easy absorption of new capital is
sues is still feature of the situation.
forelgn money markets are affected by
tiC new issues, nOtWltnStand-
ing the. abundant accommodations of re-
serves in money centers The retention
OF the Bank Of England discount rate
this week disappointed numerous eXpecta-
tons, and the resulting rise i'm our
change rate has checked the disposition
OF foreign bankers to place loans here.
The steady expansion OF the value of our
| merchandise imports in connection with
the marked Shrinkage in our exports is
watched with attention in Its bearing on
our future access to the benefits of for
eign money markets.
Bonds have been less active at the
stock exchange, but the outside business
is reported to reflect a continued large
absorption. United States IS advanced
Is. the IS Il and the new Is Y per cent
on call on the week.
Ns(>~-4~ M w.. n