The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-10-29

New York, Oct 2S.-The favorable
showing made by the bank statement
was a complete surprise to Wall street
and venturesome bears were caught
short The result was seen in some
violent price changes. The expecta-
ton of an untavorable statement was
so universal that The bears were very
active in the first hour and the bulls
were little disposed to push their VEN
lures.
The early advance on buying by Lon
don and a light demand from out
siders through commission houses was
completely wiped out and the in
dustral specialities yielded easily IN
sympathy with the weakness manifest
in Steel d Wire, which dropped TO Asa
on continued liquidation and uncover
ing OF stop-loss orders. Pretty mulch
ali the stocks of companies in the metal
industry We're specially Vulnerable and
there was profit-taking in the Leather
stocks The latter were supported by
the recently active pool and prices bid
uD sharply This prompted some
covering by the bears in other in
dUstrials before the appearance of the
bank statement.
But the scramble for stocks immedi-
ately upon the publication of the state
ment showed that large bear contracts
remained uncovered The bulls helped
on the advance and bid prices up easily
and by wide Jumps in the effort to take
The market away from the bears. The
closing was feverish but strong and
showed q higher level of prices on the
day. The southern and southwestern
railroad STOCKS made the best showing
as on previous days of the week.
The bank statement is completely
y, H..
banks was taken for granted. None of
the preliminary estimates placed it
under 81. 0O0 900 and most of them put
it at over SO, 000,0 coo. Instead it is $751;
600 The increased activity in the stock
market indicated that the process of
loan contraction had been stopped. In
stead there is a loan decrease of 81, 1885,
800
Bear traders were confident that cash
in the banks would fall below the legal
reserve requirements. Instead, the
surplus is more than doubled by
reason of the reduction in requirements
by loan contraction No satisfactory
explanation is available Of the sur
prising remuneration effected by the
banks during the week.
Dealings in stocks have been on
greatly fncrea sed scale during the
week the total sales running to near
the three-quarters of a million shares
mark on several days against a pre-
Nailing daily average for some time
past of less than half a million. The
market has broadeEed, the active list
being more than doubled in length
and many obscure stocks coming for
ward into activity at advancing prices.
The disposition has been to advance,
the opposing factors being the stiff
ness of the money market and the
Weakness of some of the green" in
dustrials, with no dividend record yet
made.
The GROWTH of a new demand for
stocks during the week has been avail
ed Of to take profits by those who have
been picking up stocks during the re-
cent depression and money stringency.
The advance in prices since the first
week in October, when the lowest
prices were made by the liquidation
forced by the wholesale calling of
loans. has been from Z to 10 points in
the majority of prominent railroad
stocks The profit is sufficiently at
tractive TO have induced some eX-
tensive realizing.
The effect of this great move became
marked as the week progressed and as
the threat of an unfaYorable bank
statement undermined the confidence
of buyers. The most influential factor
in the weeks advance was the an
nounced determination of the railroads
to advance their rates for transports
ton. Thus they give benefits directly
TO stockholders in railroads as the
traffic of railroads has grown TO such
enormous proportions that a very
slight change in the rate per ton for
freight would make a vast increase IN ,
the aggregate return to the railroads.
But the incident has been significant
in its wide bearings. Composition Tor
railroad business has been so keen IN
f1n+ ont TaS
have been too severe for railroad man |
ayers to make in order to secure bust |
ness The advance in railroad freight |
rates is evidence that the traffic has |
reached such proportions that there IS |
enough to keep the competing lines all |
profitably employed.
IN conclusive confirmation of the sig |
nifcance is intelligence received from |
an quarters Of the country of longest |
ed freight car famines and eager de- |
1uand for new railroad equipment. Inc |
announcement of the New York Cen |
trails intention TO devote the proceeds |
of its new stock issue of Sl5,OOO,00O to !
acquiring urgently needed new equip |
ment. attracted additional attention |
10 the subject Another incident hav- |
ing far-reaching influence on senti-
ment was the announcement OF the |
closing of contracts by the great rail- |
road comnanieS for steel rails next |
wear TO the extent OF 1,500,OUO tons pre-
vious to the advance in the price. Sew
tral of the largest railroad COMPANIES |
have delayed these contracts appar- |
eatly with the hope that the prices OF |
iron products would relax.
The decision 10 accept the present |
level Of prices for SO vast a quantity |
of product by authorities whose oppor- |
funities for information is far-reach- |
ing. and whose trained judgment in 1
large affairs is so skillful, goes far to 1
strengthen the general faith in an eX- |
tension of the period of prosperity. The /
large orders placed by railroads all |
over the country for new freight cars |
tend 10 the same conviction. The fu |
ture demand thus assured tends TO !
counterfeit the theory that iron prices
would react with those OF copper, TIN, |
lead and other metals.
The multiplying evidence of unprece-
Gented activity and prosperity in bust |
ness have caused some relaxation of |
pressure against even the green in
tilistrials, which have been much in
disfavor on account Of the disclosures
REGARDING the capitalization and
method of valuation of constituent
companies. There have been conspicu-
Gus examples of price collapse in this
class during the week, but insiders
have showed more inclination TO sup
port the securities than in other recent
situations of a similar, kind. Money has
become easier at interior points dur
ing the week, and the pressure upon
New York has somewhat relaxed, but
has not ceased. Rates for money in /
New York have consequently been very
firm on account of the already depleted /
condition OF bank reserves.
The firmness of foreign exchange. in