The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-04-02
TWIN CITY RAPID
SELLS Up TO 11S
Bank Statement Better Than
Expected and Adds to
Bull Courage

NEW YORK, April 1.-The weekly
bank statement today COMPOUNDED all
previous estimates as to it's character
Notwithstanding the weeks enormous
demands for credits the banks report q
contraction in loans of upwards of
$10OOO,OO0. The only explanation can
De that the credits outstanding in the
STOCK market. by the banks have been
Withdrawn to the extent of meeting
requirements in other directions and
that loans have been made through
trust companies and through other
sources. There is no room to doubt
that the volume of credits as a whole
mas been substantially expanded dur
ing the week. The Indicated loss of
cash of $4,500,000 is reduced in the
showing of the bank statement to
ABOUT 100000. The net result is an
Improvement in the margin of the sl1r
plus to the extent of $2.1S5.25O The
appearance of the statement had an
encouraging effect on the demand for
STOCKS, but the days notable move
ments were confined to the list of spe-
claltles. This is in accordance with
the protested expectation of the trad
ing element that the movement to be
looked for is to be in this class of
stocks.
Trading Professional
The days operations were almost
wholly in professional hands, but
were indicative of a confident feeling
that next week will see a revival of
speculative demand and quick relax
auon IN the money market. Banking
opinion on this point was by no means
agreed, in spite of the nominal
strength of the bank statement. The
snllling or loans to the trust compa-
mes TO foreign bankers, while it af-
lords relief TO the resources of the
banks themselves, nevertheless makes
real lnroad upon the available supply
vi Sredlts. Additions are constantly
MADE to the list of new bond issues
which will add to the requirements of
the money market, and the extent of
the exterior demand for money is an
unsolved problem. The reviews of
mercantile agencies point to highly
prosperous conditions in all lines, and
these were factor in the day'scheerfuI
sentiment. But the activity thus indi-
Gated promises a continued wide de-
mand for funds In all lines of business.
The market closed barely steady and
below the best. Total sales of bonds
par value, $2,170,0O0.
Market Irregular
Prices of stocks have given ground
thls week, but in an irregular and re-
strained manner, the decline being in
terrupted by recurrent rallies. This
was believed to be due to the frequent
covering of short contracts by the
pear traders, who thus testified their
lack OF confidence in their position.
Ihere was also evidence of support
py buying orders at times when the
tone became conspicuously weak The
hesitation has been ascribed principally
TO the money position which has
prompted conservatism in making ex-
tenslve commitments on credits sub
to IL 10
that the limitations of the money sup
ply are due to temporary causes. The
attitude of the trading has been to a
degree waiting one until the Situa-
ton is cleared up. Aggressive opera
lions for an advance have been dis
continued meantime and even support
is less effective. But the party of reac-
ton has not operated with any bold
ness. The strength of the general sit
uatlon has intimidated them and the
developments of the week have offered
nothing TO suggest any impairment of
actual values. Trade and industry are
obviously expanding still. But with
money market resources restricted
means for free operations In stocks
have been lacking and the rate of ac-
uvlty in securities has decreased ma
| terially.
Last weeks bank statement showed
that the surplus reserves had been
protected by reduction of the deposit
liabilities by contracting outstanding
loans. The demands to be met during
the week caused a strong conviction
| from the outset that loans would ex-
pand for the week With the surplus
already a low level there was the like
| hhood that loans would have to be
called from the stock market to meet
other requirements and to-preserYe the
legal reserve.
10,
but in unexpected moderation. Each
| day during the week there was fear
that furry would occur in the gen
eral market before the day was over
The tendency towards recovery IN the
latter part OF each day on the stock
exchange marked the sense Of relief at
the tranquility of the money market
Japanese Loan
The subscription to the $75, geo, 900 in
stallment of the Japanese loan was
the principal event in the money
market. The large subscriptions offer
ed for account of domestic interior in
situations was the occasion Of remit
tances from the interior to New York
which carried their own protection of
the money market. Subscriptions were
reported. here also for European ac-
count. and it is believed that remit
tances in preparation for these had to
change, which carried the rate near to
the gold import point. Exchange has
recovered this week and Paris has
renewed its demand on London for
gold The bank OF England return for
the week disclosed a very large resort
to that institution for credits to relieve
the open market This situation abroad
has modified the previous confidence
that resources We're opened for relief
from fpreitrGl money markets in case
OF need hr. The week opened with
an intin.ation from the treasury au-
thoriues that an additional call for
return of government deposits 10 the
amount OF fifteen or twenty millions
might be expected during the spring.
The weeks requirements included the
April 1st settlements, known to be un-
usually large this year. Beyond lies
the subscription to the PENNSYLVANIA
railroad bond issue of 500, 000, 900.
Other large capital ISSUES are already
| announced and stih others arc known
to be in contemplation.