Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1899-06-15

COLLAPSE OF TRANSACTIONS


Sew York. June 10 lht3l-lh wan
ftrcct. affairs nave exhibited another
week II comparative dullncsa. The de-
gIninr tendency of values apparent
during the two or three weeks prcccd-
Ing has certainly bccn checked. but
Dine late yielding ~ prices has not un
vel induced enough buying 60 produce
general activity TO be- in keeping with
tbo recovery IN the tone Of che market.
rricus are probably not low enough TO
tempt extreme buying. nor high enough
to encourage either realizing or boar
ceiling. and. at the Same time, there
Hrp no outside Influences calculated 60
materially unoct operations violently
iu either the one direction or the oth-
,r
There are also tompornmcntnl causes
which have had much 10 do with tho
collapse IN transactions 10 about 40 per
cont OF their recent volume. The spec
Native element in Wall street ~ above
800 morcurlai. It ls highly sensitive Co
Impulses and follows drifts In either
direction until they eliminate In cN-
trcmoa, after the extremes come re-
actions IA the opposite directions aud,
after the reactions. % collapse Of oN-
element aud contraction ~ opera
lions. Then cufuCa phase of inhction
nud waiting. during which the nitun-
don d. carefully weighed, prices are
rharply tested by the professional
traders and a safe bottom is thereby
reached In tho meantime. the weaker
class of operators are wuvdcd CUT
rsv. ret OF conditions affecting values
UTaUa. the speculative spirit RECEIVERS
IfH elasticity and the elements Tor am
other campaign are forthcoming
A BULL CAMPAIGN.
This Is very much O. recital OF tho
c1uf.o 0f events loo the stock market Tor
thD Inst twelve months Tlkyu ua %
whole. IL has bcpn "hull campaign
of unclunllol force and ucuNity' our
ing thr last quarter nj 1855, there was
d downward reaction. but with me
uppuiur OF 1893, the upward tendency
recovered &C. force and. within four
months. carried up prices 90 figures uh.
anticipated by the most utnEulno ana
surprising 400 experience. a. th' cilHlH
when prices had reached un elevation
90 abnormolly hirh that e. relapse WIS
Inevitable. tho market was tlknn hy
0urpricso by the immenHo cancellations
ID Industrial capital. That movement
though not bringing ON the market
fupply u now securities at all pro-
pprtioncd 90 tho magnitude or tho
transformed capitals had yet the ef-
fert or introducing into the money
market n now element OF VnHt Import
nuce. 10 caused demands Tor consider
able transient loans which were not
without their effect upon largo holders
~ ordinary stocks, ana gave rise tn a
vgi1s diversity of opinions aH 90 the
hrprlng Of this rrclt industrial recon-
rirurtion upou the future of credits,
Investments and spcculntinni while u
diverted money from speculation IN lhN
older stocks 90 ventures 10 these row
iuluHtrlnlH, Thus, the Troh nun
movement in the regular Hot one'un-
teroi
A STAGGERING OBSTRUCTION
from tho unforeseen creation of n
vast amount ot now InduHulHH ace
rIrupd TO hcnCvfOrth play am import
nnt part ln tho operation Of tho stock
pNuhanre The marvel lH not poo much
Tint this sudden expansion uf th' area
of the stock market should nov" proc
Jurcd pause lu che prevailing extra
ordinary bull cnmptiEu, as th1t il ilH
NOT boon attended with more disturb
Iug effects. Tho fnct that the market
has H1 wUll preserved itH equilibrium
and that In tho face Of the trying hap
poumrs TO thoFlowor interest ana or an
unsettled money markets. remark
uhlo evidence OF tho Intrinsic strength
of the financial markets ana Of the pre-
Willing etpndlucHH OF public confidence.
In estimating tho future Ot the stock
market. ID d. not 20 ho overlooked that
This new element must Dee one OF tho
most important factors 60 he dealt
with. So FAR ns this situation means,
tD that an addition has been made 90
tAe supply OF securities seeking invest
meut. and CD that tho stock exchange
demand upon tho banks for loans Will
Doc thereby hrundonJ d-HO FAR the now
situation ig not 90 bee regarded nH ono
altogether favorable 20 cNtrumc prlcos
Whether yulues have boon already adj
ju7te6 20 the new position ndmiW Of
tIucrrnCca OF opinion. II o. true that
The fall in prices wcro the result OF an
unprecedented rampant speculation
and were much above the normal level
on tho other hand, the special national
prosperity that hVH led to tho great
speculative activity stlll continues
Und with 40 visible reason for expect
ing itB early dIacnutinunurr IL o.
also Co he kept ln Wow that, as rule,
thnrD Is no imperative necessity for tho
immediate marketing uf the now Indus
trials. For tho most part, those stocks
have gone into the hands OF the orig
inll owners of tho
PROPERTIES CONSOLIDATED.
who Il may De presumed would be- sol-
lorH only at high prices and net before
the value OF tho stocks had been sct-
Ned hV experience, Probably, tho prln-
g.pul sellers of these issues would DO
promoters OF the cancellations whose
compensation has been paid On stock,
sud the question 10 respect to such
holders % whether they could not grt
hottgr prices by holding than hy ronliz-
Ing under the present uncertainties
ana pending q glut of supply, Bo this
u7 II may II Is certain that the hnnn-
ulll Interests committed 10 the launch
INK Of these now Issues iH quite "a large
md Influential one, II ~ clear that their
ability TO sell their stocks must almost
entirely dopond upon the maintenance
M healthy tone IN tho general stock
markcLThe older stocks have therefore
the solid backing of this important
class. which ~ matter ~ no small
nom9nt 10 the future " the railroad
list Il ", however, too early as yet
10 venture upon definite fnrcahadow-
inEs, and, Tor the moment l would
counsel the buying M sound stocks, and
for modest profits only The work
ul the hour with tho leaders
NJ speculation ~ 90 canvass the now
situation and mature plans for the neNt
phase Of the great campaign
which began "a year ago ana
does not seem 20 have yet