The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-06-04
Its Operations In the New Stock
Market Yesterday,
BUT LITTLE ENTHUSIASM
UNFAvORABLE BANK STATE.
MENT AFFECTS PRICES.
Decrease In Cash Owing to Engage
ment of Gold For Export-Short
Week On Change characterized
By Dazzling Campaign and Quick
Retreat By the Bears.

cOuraglng the formation OF a bull party
in the stock market and they made it
sufficiently obvious at the opening of
the trading and even before that they
had fixed upon the stocks of new steel
commissions and few other industri-
al specialtieS as the most promising
field for operations. Tips were dis
seminated through inspired sources and
by publication of coming dividend de-
| clarations on several of these proper
| ties and their prices were bid up in an
transformations way at the opening.
There was not the expected enthusi-
asm, however, in support of prices.
either by the outside demand or by
the professional traders. The higher
level of prices invited profit-taking by
some of the buyers of yesterday and
| the advance came to a standstill.
There was hardening of prices on
covering by shorts in expectation of a
favorable bank statement. But the
! statement was on the contrary. I'M
! favorable, and the gains which had
been established by the bull clique
were quickly marked out There was
very little liquidation induced by the
decline and the closing was quiet and
! somewhat irregular in tone and Show
ed net losses in the majority of cases.
The holiday in London deprived the
market of what has been source of
strength in the last few days. West
ern Union, Brooklyn Transit and Sugar
showed evidences of rather acute weak
ness and in the railroad list Northern
Pacific and the Coalers were centers
| of depression. Fractional gains were
retained in a few stocks, early adj
vances not being entirely wiped out
| in the iron and steel group. The bank
statement was a surprise, as 1T was
expected that the liquidation in the
stock market would have resulted in
a contraction of loans and a decrease
in deposit liabilities. Instead of this
there was small increase in loans.
The decrease in cash vas expected and
was due to the engagement of gold for
export and to losses to the banks by
the sub-treasury by reason of the
small excess of revenue returns over
government expenditures, which is now
the rule. There was very little bust
ness transacted in the bond market
and price changes were small.
The short week on the stock eX-
change has been characterized by a
dazzling campaign and quick retreat
by the bears. They found Il number
of conditions in their favor when they
returned to the street on Wednesday,
after their three days' holiday, and they
sold stocks with great confidence and
soon broke the market. The eXhaus-
ton of margins on the decline brought
out a flood of long stocks, which en-
abled the shorts TO cover extensive
lines at a good profit. Probably the
most influential factor in determining
the bear attack was the abandonment
of the purpose to sustain the prices
of the new Amalgamated Copper stock
at or above par. The SI5,0o0,000 of
stocks of this organization was largely
over-subscribed at par and the pay.
ment of subscriptions was completed
"a week ago Monday. The subscribers
were understood to include some of the
most powerful financial interests in
the country and the new stock was
supported at or above par all last week
in fact of very languid public de-
mand. When the price was allowed
to slump to So on Wednesday and
Thursday in the outside market it was
interpreted to mean that the powerful
hackers were not disposed to combat
the reactionary tendency in prices for.
the present.
Fortified by acquiescence on the part
of the element which had frustrated
previous attempts to force down prices,
the powerful bear party proceeded TO
work their will with no important OPP
position. A large body of security
owners had for some time been in the
position of inertly holding ON, waiting
for a further rise in prices. When the
wide gaps, and the owners saw the
value of their holdings being cut away
from under them, they became alarmed
and threw over their holdings indis-
criminately. Among them were show
ings of reduced net earnings for April
by the st. Paul, Burlington, North<rn
Pacific and Union Pacific systems. for
which subsequent plausible explana-
lions were offered, but which were. Gil
their face. evidence of Il decrease i'll
the sums available for distribution
among the stockholders.
There was a hardening tendency i'll
exchange, foreshadowing an outward
movement of gold. which came in the
announcement after banking hours on
Thursday of an engagement Of 5000
600 for shipment to Europe. The fact
that this angag smcnt was made after
an easing IF The rate for sterling eX-
change led some exchange bankers &c
question whether the operation could
yield a profit as an ordinary exchange
transaction. The fact that It vas
made by rhe institution that financed
the Ama.gama.ei Copper company,
and also the payment nf the philip
pines indemnity, may serve as an ex-
PLANTATION. The purpose was to pro-
vide for the payment to Spain, go as
to avoid the export of gold, ami a suf-
ficient amount of foreign exchange was
accumulated TO cover the amount due |
to Spain, so that the gold :or certif-
Gates of gold) could Ne transferred from
the sub-treaSury in New York TO the |
banking institution. 1t was obviously /
corrollary of the plan to set off for /
eign obligations to banks, including, |
presumably. foreign subscriptions to |
the new copper company, to make up |
the foreign credits tunrned over to the |
government. But the operations seem |
to have induced a plethoric condition |
in the local money market, and a hard |
ening tendency in the London money |
market. which were not counted EDon, |
and which make the outward move
ment of gold necessary to restore the |
balance.
The relief to the London money mar
ket gave strength to the stock market |
there, which spread to Americans, and |
was reflected back upon the New York
stock market. This, with the fall in
wheat, the subsistence of the yellow
fever scare and good prospects in the
coal carriers, led to good recoveries
Prices recovered last weeks level or
above all around. Bonds sold off in
with stocks, but they were
later in yielding. and declines Were
much less marked. United States IS
and old As reg. advanced r. and the
new is and the IS Il in the bid price
The old IS coupon declined u.
The total sales of stocks today
amounted to 2ss,17O shares, including
American Steel & Wire. 25.500; Amer
lean Sugar. $1,000; American Tobacco,
4 900; Anaconda, 1900; Atchison pre-
ferred. 1900; Brooklyn Rapid Transit
%. 800; c. B. & O.. 1890: Federal Steel.
%. 200; Federal Steel preferred, 400;
Louisville & Nashville, $500; Manhat-
tan. 10.700; Metropolitan Street Rail-
G n. u o. (, y