The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-03-06

neWed with energy on the stock exchange
today and the Saturday short session was
long enough to effect some striking de-
clines. Large selling orders were executed
for Washington account, as was the case
yesterday. There was no news to account
for this selling. beyond general feeling
of apprehension over the Spanish situa-
ton.
There We're occasional rumors of new
developments afloat but to a large eX-
traders as TO the motive for theWaShing-
| ton selling. a rally in the late dealings
was III part the result of covering by the
shorts who had sold early in the day, but
the coincidence of the rally with the APP
| pearance of the bank statement seemed al
variance with the statement, which was In
some respects a disagreeable surprise.
! The contraction in loans, the falling off in
deposits and the decrease in cash were
much larger than had been expected.
MARKED NET DECLINES.
The fact that the financial world had
| bean going through such a trying period
with so little harm resulting was accepted
as bull card, in view of the underlying
! strength of conditions which is thus dem
/ onstrated. Nevertheless the general list
shows marked net decreases. extending
/ 10 over q point in some cases. Union
Pacific preferred, Northwestern and Man
{ haitian were the special points of weak
! ness. The grangerS were relatively firm
and the coalers also showed resistance to
the decline.
Dealings in sugar were large and there
seemed to be good support for this stock.
STRIKING EXHIBIT.
! AS measure of the uneasiness felt by
the financial community over the status
of the country's relations with SPAIN to-
| days statement of New York clearing
house banks makes a striking exhibit.
There is in IL evidence of q great drawing
in OF credit and fixing OF reserves The
statement was I surprise. Il has been
known that the demands of the country
for mone- for active use have fallen off
considerably this week. but the state
ment, nevertheless. shows a decrease in
cash reserve of nearly $S.000.0O0 That this
reflects the withdrawal OF deposits in
New York banks by interior institutions
as precautionary measure to strengthen
their reserves. is beyond doubt. The
enormous contraction in loans of $13,622, 900
represents the precautionary measure OF
the New York banks and explains why
money Tor purely speculative pui poses has
become scarce, why liquidation on the
stock exchange has been forced and why
prices were acutely depressed.
SOME REASONS.
1t is possible that some part of the loan
contraction is due 10 liquidation on ster-
ling exchange collateral which has been
Withdrawn from use in importing gold.
But it is the general balief that the gold
imports have been made on the sale of
new bills against London purchasers of
American securities. which were heavy
last week. and against grain shipments
The net result to the clearing house
banks is decrease in deposits of S2s,1sS.-
Gold in transit for New York or re-
to $5.S00000, which viii serve as an Offset
in part to the bnaks' losses of cash.
THE SITUATION.
The situation in the stock market is
closely analogous to that which fol-
lowed the elimination of the rise in prices
last September. The movement of money
then to the interior 10 move the crops
caused stiffening of money rates and
liquidation of speculative stock holdings.
Whether the import movement of gold
will result in a renewed advance in stocks
with the easing of the money rates. re-
mains to be seen. That the disposition for
the moment is against speculative outlay
in securities is evident. though large
capital apparently stands ready to buy
stocks at any considerable decline in
prices. The decline of the latter part of
the week has not in all cases wiped out
the early advance and net changes are
mixed.
Bonds have not been as active as stocks
but have moved in sympathy with them
within a narrow range.
U. S old As and the seconds are half
lower and the new Is 4 lower bid
MONEY MARKET.
Close: Money on call steady at per
cent: last loan 2 per cent Prime mer-
camille paper, 4d41a per cent; sterling ex-
change duh and steady with actual bust
ness in bankers bill at 4.S4ls for demand
and 4.S11aG4.Sl3i for 90 days. Posted rates,
4.S3 and 4.S5ls; commercial bills, 4.S02..
Silver certificates. 5lsel5f5s. Bar silver,
5i5s; Mexican dollars, 4i@s.
Government bonds weak; state bonds
dull: railroad bonds weak New As. reg.
l24; coupon, 1874; Is. III: coupon, 112; 2nds.
80; IS, reg. and coupon. 112; Pacific 6s of
80, 1882.
SALES OF STOCKS.
Total sales of stocks today 235. 600 shares,
including: Il.025 Burlington, $50 l.. & N,
q. O62 Manhattan. 1916 Metropolitan. $3.50
N Y. Central. $500 Northern Pacific. H.
407 Northern Pacific preferred 4S4 Rock
Island. 1886 St. Paul. BOSS Union Pacific,
200 L. p. D. & G.. $500 Peoples Gas, a.
$40 Sugar 1909 Western Union.