The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1905-03-19
ONTARIO ( WESTERN
TAKEN IN HAND
And Moved Up Three Points
Market Has a Spotty
appearance

appearance
NEW YORK. March 1S.-The govern
ment of the stock market today indicated
the activity OF contending forces in the
speculation. and the contest between
them was rather inconclusive. The clos
ing was irregular and not far from last
nights level after passing considerably
below that in the early dealings and gen
orally above on the rally. Stocks were
freely sold during the early dealings and
the recovery seemed TO be due to profit
taking by the bears, who were disposed
10 close up their contracts on the three
DAYS reaction preliminary TO the Sunday
interval IN the market. The showing by
the banks in the weekly statement
which mad been counted upon by the
bears TO induce selling and thus afford
them an opportunity TO cover, proved to be
moi so weak had been feared. so that
the buying by the shorts was OF the
greater effect. The good resistance OF
Ontario d Western TO the declining tend
ency and notable resiliency in New York
Central were also sustaining forces IN
the market.
Reserves Decrease
The loss in reserves proved to be but
$I,430.900 in place Of the estimates run
ing from ten TO twelve millions, and
the contraction of credits to the extent
of s., 241 800 contributed to the reduction
In deposits, and thus relieved the reserve
requirement TO the extent of 50 800. 925.-
The reduction of 81. 123 975 in the surplus
brings that item to IS, 154, 175. which is
low for this period of the year with the
interior demand for currency now immi-
nent- The weight of opinion is therefore
IN favor, of somewhat higher rates for
money. But offering OF funds by the
trust companies at the higher rates NAV
be expected. The usual discussion is
thus invited of the growing part played by
these institutions in the money situation
as q whole apart from the showing by
the banks themselves. Foreign exchange
continued its decline. in spite of the firm
ness of discounts in London.
Sentiment Dlstrustfui
Speculative sentiment showed itself dis
trustful of the market from the opening
OF the week, but there was good resist
ance to the moderate pressure during the
early part of the week In the absence of
any unfavorable prospect in the general
business, industrial and financial condi-
tons. With the rise in the call loan rate
for money the reactionary tendency as
sumed the upper hand and pressure to
sell overweighted the market There is
a large element amongst those operating
IN stocks which has held conservative
and professional traders have constantly
tested the market to find a yielding tend
ency. These operations had proved SO
often unsuccessful, necessitating the coy
erlng of short contracts at a loss, that
the bears had grown timid and were keep
ing out of the market. The power of the
sorb the heavy profit taking from time to
time and the constant development of
new points of strength, served to convince
the Skeptical that stocks were being taken
out of the market by substantial holding
powers, and gave color to the many ru-
mors constantly Tetailed of accumula-
lions OF many stocks for purposes of con-
trol and ultimate plans of combination
and readjuStments of relations which
We're expected to increase the values of
properties.
Trade Expanding
The partisans of a continued advance
also had On their side of the argument the
unclouded conditions in the business of
the country. Trade was admittedly ex-
panolng IN all directions and the ex-
traordinary activity in the iron and steel
trade especially WAS of great force as an
moex OF prosperous industrial conditions
as whole Unprecedented bank clear
1ngs were clear proof of the large volume
Of business and the enormous outlay in
progress by the railroads and plans for
slin InrLner expansion IN the future wit
messed confidence in the perrnanency
OF growing requirements on the part of
tnoSe trusted as the most competent
Judges OF the course of business There
was no attempt to deny or to befiftlc
these facts on the part Of the conservative
party Their argument has been simply
arlat STOCKS nave already risen TO level
winch measures all these Favorable con-
nftions and that there was danger of their
being pushed to a level beyond witt, a
Iesuiflng 1nsta bility which would threaten
subsequent misfortune II was feared
that even should all of the expected plans
De contaminated there would prove to
De no TURNER waiting 10 take up the Of
1erlngs which were waiting only to get
Out OF holdings at profit The doubt was
offered IN addition to the truth of MANY
OF ths rumors which have been the mo-
live Tor large buying of stocks up to a
level which nothing in their present rate
or dividend or known earning power
seemed to justify 1t was feared that
time OF disappointment must ensue for
the buyers when there would be q rush In
get out OF their holdings and a resulting
slump.
Ease IN Money
The apparently invincible ease of the
money market was a powerful factor in
encouraging the holding on to stocks
With the rate for money almost nominal
Tor day to day loans there was a profit
IN buying stocks with borrowed money on
which the dividend return, even at the
reduced rate ON present high prices was
suiilcient TO ray carrying charges and a
tasted small price fluctuations would be
Regarded with much greater tranquility
tian ~hefe the profit ON rise was alon..
fedieo On Many of these holdings also
were acquired at an early stage In fine
rise and offered a wide enough profit TO
\ aHoro apunuan1 opportunity to get ont
Even when the rise in call money mod
HE'D this condition there was manifest
restraint in the reaction and the resist
ing power OF the market was notable
This attitude Is partly due to the belief
that the furry in call money is ttrnno-
rary and due to the fepay menf of TX
Per cent of government deposits with ma
tionai banks. which was made on the
9Th in response to the call. The spr.inp
demand from the interior is now TO he
faced however. and its DEVELOPMENT will
be watched with attention. So viii the
returns Of conditions OF national banks
as of March ID. now called for by the
comptroller of the currency, especially
Ter the item OF loans.
Imports sfos,0oo 900
The showing Of February imports at a
recorded figure with value of over SIQs :
oooVo0 is accepted as evidence of the
counfry's heavy consumptive require
ments. The decline In value OF exports
while traceable in part TO the low price
OF COTTON and the disappearance of the
-cxportabie surplus Of the wheat crop is
also regarded as attributable to the coun-
tsy large power of consumption of its
own products But the reduction of the
excess value of exports to below S6 ono ,Oo
&ilh Inc consequent reduction of the sun
ply OF foreign exchange is canyassed for
IT'S possible effect on our money rns-,ret
N recognized English financial arflo-ifs-
asserts the opinion that European horl-t,,.
reserves are becoming so reluniant as
our own capital requirements expa n6tnr~ 81,
rapidly That flow of foreign canita1 frfo
our investments is likely to resume witt,
movement of gold to New York as the
consequence But a rise in interest rates
: VIII De probably necessary preiinina--v
TO such movement The outcome nj
peace or war In the far east is s7nnf,,ars
FACTOR in the problem
Inc bond market has been Iess active