The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-12-03
WEEKLY BANK STATEMENT
FULLY AS FAVORABLE AS HAD
BEEN EXPECTED.
Futurc of the Money Market Still
Unpromising From the Stock OPP
orators Point OF View-Activity
During Week Restricted to Few
Individual Securities.

able bank statement. The appearance
OF the statement on the tape was the
signal for a light realizing movement.
and as there was no outside demand to
absorb it. prices fell away. The clos
ing was duh, but distinctly easy, the
downward drift having established a
liberal sprinkling of net losses where
the level had been higher, throughout
in the early dealings. Sugar ana Gu
cose were strong on the reported plan
for consolidation and absorption OF
competitors. There We're evidences of
strength In Union Pacific, Northern Pa
cific, Burlington and Chesapeake &
Ohio. and in one or two of the less
prominent industrials. None of the
gains were well maintained, the whole
list being affected by the easier tone
in the. final dealings. e
The bank statement was fully as IA
Torabie as had been expected, though
the liberal expansion in the loan ac-
count was unlocked for. The high
rates for money and the satisfactory
security offered are attractive, inducing
the banks to keep their loans close to
the limit of the legal allowance. The
lack of response to the bank statement
was due 10 the understanding that the
recuperation in reserves was wholly
due to bond redemption operations with
the sub-treasury.
The fact that the movement Of cur
relcy is still in favor of the interior on
balance and the progress of the sterling
exchange rate towards the gold export
point, further step of which was made
today, leaves the future of the money
market still unpromising from the
stock operators point of view. Activ
ity in stocks during the week has been
restricted to a few individual Securi-
ties. and the general list has been
cole fnd f1an 6pn on
Gency of prices was partly offset by the
heavy absorption of the great trunk
line stocks, and the sharp upward
movement in the prices of those prop
critics.
The reports pat in circulation to eX-
plain these movements are mostly
anonymous and are far from being ex-
plicit. They range from allegations of
n consolidation Of ownership 10 milder
limitations of q friendly and mutually
advantageous cooperation. Though
lacking explicit knowledge, the Wall
street public finds confirmation from
the stock tape of its conviction that
policies have been inaugurated which
promise substantial Improvement of
the trunk line situation. The special
field of the benefits to accrue is indi-
Gated by the way some other railroad
stocks have suffered on account of
shifting Of holdings into trunk line
stocks.
Besides the great trunk line stocks
there has been a movement in num-
Der of extremely low price stocks, SELL
ing under $50. and a few even under $40
per share. The strength of these was
attributed almost entirely to individual
causes. but the general tendency to-
wards consolidation either of small
ines with each other or of small lines
With powerful existing companies. was
L conspicuous element in the eXplana-
ions offered of these movements. Such
movements have resulted IN talr
sprinkiing of net gains through the list,
but the majority of stocks are slightly
lower disappointment over the failure
of the money market to show work
easier in spite of last Saturdays i'm
proved showing of the banks, was the
principal motive OF the in0isDosition TO
embark on speculation.
1t is the custom for stock brokers to
charge their customers G per cent for
funds employed in carrying stocks. no
matter how low the open market rate
for call loans may go. Now, that open
market rates are ruling at or above 6
per cent, brokers have charged their
customers accordingly, and have met
with protests. While the call loan rate
serves to wipe out the profit TO brokers
on loans, they are not inviting opera
tons by their clients on any extensive
scale. The weeks events seem to put
the return to cheap money some time
IN the future.
The Bank of England has waited to
advance its official rate until it has Sc
sured control of the open market by
selling consols and thus lifting money
from the market. The English institu-
ton is manifestiy terrifying itself after
a special demand to come later, partly
to meet requirements for yearly dis
bursements by corporations on Jan. l
and partly, it is believed, in eXpecta-
ton of a further issue of government
war expenses.
An unusually large volume of loans
by Canadian banks is in the New York
market, and the advance in the London
money rate threatens to attract these
funds, necessitating their withdrawal
from New York. In the New York
money market itself the recuperation
of resources disclosed by last weeks
bank statement has not led to any APP
preciable increase in offerings for loans.
Neither has the addition to resources
during this week by reason of the sub
treasury operations in connection with
bond redemptions.
The strength of last Saturdays bank
statement was due 10 the operations of
only one bank, but a very influential
and powerful one. These operations dis
closed a change from the recent policy |
of calling in no more outstanding cred |
its than necessary 10 keep barely with !
in or even slightly below the level re- |
serve requirements. Not content with |
an increase in cash resources of over |
$. coo, 900. this single institution con- |
tracted its loans over S4,00o.00e last |
week.
This looks like entering upon a sys- |
TEN of recuperation III preparation Tor |
a coming demand. Such a pol |
icy, while strengthening the showing of |
the banks. would still further restrict |
funds available for speculative opera |
tons in stocks.
The interior exchanges have turned |
against New York again during the |
week. Although the treasury depart |
ment has extended the period of its Of |
fer to redeem bonds. OF which about |
s., Geo. 600 are available under the offer. |
* is now manifested that this meas |
ure serves only as a safety valve. and
that 1t releases no funds except under /
pressure of high money rates. Any |
le encroachment money sup |
ply for purposes Of stock speculation |
threatens TO precipitate money strin-y
gency which would in itself defeat the /
objects of the speculation by bringing I
iiquidation on the market.
Dealings in bonds have been on a |
moderate scale. Price movements have !.
been in sympathy with the stocks of the
same companies. United States IS and
old Is and IS Is in the bid price.
Bond Quotations.
L. S. Is reg. 102 Al. K-a& 7. Is slH
L. s. IS reg. .i09I n. T.sC. 112is |
Z. IS COUP. less n J. g gen 5s. 1903