The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-05-02


weeks trading was marked by the
same condition of apathy, and almost
stagnation which has characterized
the market all through the week.
The dizziness was accompanied by
the heaviness of inertia, and prices
sagged even on the limited offerings
of shares.
! The grangers were rather heavier
+ than the general list. The market
closed unsettled and irregular The
dealers in stocks and bonds have been
occupied almost exclusively with the
gold export movement which has set
in and have manifested considerable
uneasiness at the proportions as
sumed by the shipments. There was
some undertone of strength in the
market, finding expression in the small
offerings of securities at the low level
but prices have been on a descending
scale almost without exception. The
gold movement has proved a puzzle to
the best authorities. and the inability
to account for it satisfactorily has been
much the cause of the stagnation in
stock dealing as any positive appre-
tensions of it's effects. Last Saturday
the opinion was quite general that no
exports of gold would be made until
the then prevailing rate of exchange,
which WAS SiS0A for short sterling,
should rise above that figure. This
opinion was based on the fact that on
the previous Monday short sterling
had ruled at $4.SS1s and had touched
$4.SS% without any engagements be-
ing made for shipment. The exchange
houses agreed among themselves that
there would not be sufficient profit
shipping gold to make it worth their
while until demand sterling should
reach S4.SS$z. Yet today with demand
sterling only just steady at s4.S7% or
IL below the profitable point agreed
upon by the exchange houses, a ship
ment of sl,OO0,000 additional gold is
announced from Boston, to be made by
next Tuesdays steamer. This re-
trospection is necessary to properly
estimate the disputes that have arisen
as to whether the gold is going abroad
as a commodity at a premium or
whether it is a legitimate change
operation. The first engagement on
last Saturday Of 1917 900 in gold bars
which is stated TO be in execution of
an order. the firm receiving a commits
sion for making the purchase, expects
to pay the expenses of shipping. This
was obviously not a regular exchange
operation, the commission and eX-
pense of shipment being in effect a
premium on the gold The house
change agreement not to snip, gave
as an excuse for the operation that it
was not a regular exchange operation.
Yet the next house to ship carefully
emphasized q, statement to a repre-
sentative of the Associated Press that
it was done in the regular order of
business to liquidate an Indebtedness
and because 1T was cheaper than ex
change. How much of this contradic-
ton was apology and recrimination
from the breaking of the exchange
agreement can only be estimated.
The motives of the agreement were |
said to be to keep. up the price Of ex-
change until certain stocks in supply |
were disposed Of and on the other
gold exports on some heavy railroad |
bonding operations that are in process
of completion.
The doubt as to gold shipments being
in response to the exhaustion of our /
credit balances abroad grows out of the
heavy excess of our
exports over imports for
the nine months of the fiscal year, an
excess aggregating 1928 900, 900. Those
who argue that the balance of credits
has turned against us assert that this
excess of imports shows q dis
position to evade customs duties.
They point to the heavy i'm
ports of the last two months in an
ticipation, and the heavy obligations
for still heavier importations
to come before the new tariff goes into
effect. The bond market was devoid
Of feature during the week and prices
Of the leading issues show but little
net changes.
The main trend of values was toward
L lower plane, in sympathy with the
Influences governing the share market,
put the losses are not extreme except
n few of the unusually neglected
mortgages.
Money on call easy at 1A@1h per
,ent.
Prime mercantile paper. 3A a (.
Sterling exchange steady, with actual
business in bankers bills at 4.S7A0
S71s for demand and at 4.S614 "a. S611
or so days.
Posted rates, 4S7@4SS1s.
Commercial bills, 4.S51a.
BOND QUOTATIONS.