The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-09-24
Matter That Is Causing Consider
able Worry On Wall Street.
WEEKLY BANK STATEMENT
FAILS TO DISCLOSE ANY EN-
CoURAGING FUTURE.
Total Increase of Circulation For the
Week But $s5, eoo-Banks De-
mand More Substantial Collateral
For Loans-Contest For Control
of Public Utilities and Franchises

New York, Sept 23.-The tone of the
trading in stocks was quiet by COM
parison with the recent excited temper
on the exchange, but the focal traction
stocks continued TO reflect a decidedly
uncertain frame of mind. Brooklyn
Transit refused to go up more that a
point and then slipped below last
nights level. Its extreme decline was
five points, and even with a final rally
of covering by shorts. its net loss is
three points. Metropolitan Jared bet
ter and has a gain of over two points.
The other New York City stocks fell
off in sympathy with Brooklyn Transit,
and the stocks in the Flower group
We're inclined to weakness all round.
There was no marked strength at any
time. The early advance was nomin-
ally in sympathy with the hope ex-
pressed in some quarters abroad that
the Transvaal question would find a
peaceful solution after all Earlier
gains had been very generally wiped
out when the bank statment appeared.
The first effect of the statement was
rally, due to buying by those who never
look further than the surplus reserve
figures. An analysis of the statement
failed to develop any very encouraging
feature in it, and prices fell away again
to the lowest of the day, and closed
there, except for a few specialities,
which rallied.
Mitch was made early in the week of
a plan Of relief for the stringency OF
money by an increase of national bank
circulation. 1t viii be observed that the
total increase OF circulation, according
TO the statement, amounted to but $780,
900 for the week. Furious speculative
activity and excitement have made
7ao1 ae
all the week. The obvious necessity
disclosed by last Saturdays bank state
ment for a contraction of loans by the
banks prepared the professional stock
operators TO take advantage of the
freed liquidation of speculative hold
ings of stocks which had been bought
on a margin with borrowed money. the
professional operators were all bears
and took the market away from the
longs as quickly as the pressure of
liquidation manifested itself in S.ny one
spot. The course of prices indicated
pretty clearly that the calling of loans
was made with marked discrimination
against the industrial stocks. The
margin of collateral on loans in which
the. securities figured was broadened
as well as the rate of interest being
marked up. In many cases the loans
were called outright, only to be re-
placed after the collateral had been
shifted into a more substantial secruri-
ties.
The violent fluctuations in Brooklyn
Transit had an inevitable effect on
other securities more or less. The pro-
portions Of the dealings in Brooklyn
Transit have perhaps never been
equalled in the history Of any other
stock in the period of time. In two
weeks past the number of shares of
this stock sold on the exchange foot
up a total of almost four times as great
as the total share issue of the COM
pany. The fact is beginning to emerge
that a contest is on between some of
the most powerful financial interests
in the country for the control of some
or all the public utilities and franchises
of Greater New York. The contest has
been open and fierce for many months
in the gas business, and the belief in
Wall street is that the same elements
are engaged in contending for the con-
troll of the street railway corporations.
The eagerness of the bear element
among professional operators resulted
in Overwhelming the short account,
and the demand to cover became rather
urgent. There was some relief from the
earlier anxiety over the money out
look as the week progressed, based on
various causes. The large contraction
of loans was sufficient to insure ma
terial decrease in deposit liabilities by
showed a falling off both to the in
terror and to the sulo-treasury. The
purchase of 100000 in gold in the Lon
don nlarke. for shipment TO New York;
though it would not be vouched for
by anyone in Wall street, had an in
fiuence on stock exchange sentiment,
as it was doubtless intended il should
The downward course of foreign ex-
change excited expectation of an early
export movement Of gold, though for
eign bankers rates deprecate the eX-
pectation. Last September the surplus
reserve OF the New York banks fell be-
low s., O00. GOO on Sept. II. and loan con- |
traction and liquidation on the stock
exchange set in with a stiffenirg of
the call loan rate 10 per cent. BY the /
end of the month the call loans had !
dropped back TO below per cent, and |
surplus reserves had risen to about |
$4,000, GEO.
But last September the treasury /
added to its deposits with depository |
banks the sum of nearly $4,000 coo, in
connection with the payment of sub |
scriptions to the new government bond /
issue. The large excess of government /
expenditures over receipts was adding /
money in circulation, While the New /
York banks are now losing weekly to |
the sub-treSsury. During last Septem-
Der the receipts from Europe at New
York, according to the custom house
report were Sif, 7SS,242. This month
there have been no receipts of gold, and /
none are likely before the end of the /
month. Last September the treasury /
not only offered TO anticipate October
l interest on the ! per cents of 1907, as
il has done this year, but also offered TO
anticipate the redemption of over $14,
000.0o0 of Pacific currency IS. Neither
offer was taken advantage of on any
large scale by holders of bonds.
National banks were increasing their
circulation last September on a larger
scale thtn this. These differences in
the circumstances last year must be
taken into account in connection with
the quick recuperation of New York
banks last September. The loan con-
traction last year between Sept. l and
Oct. reached nearly $50 100000.
The bond market has moved generally 7
in sympathy with stocks, but has not
been as active nor changes as wide.
United States IS advanced u, but old
IS registered declined Y and the IS Is
in the old prices.
Bond Quotations.
L. s. IS req. 100s< N y. Cent. Is. .111K
L. 5. IS coup. Joss n. J. c. gen. IS. 120
L s. n. Is reg..150 Nor. Pac. lsll3
u. s. n. Is coup.13o Nor. Pac 3s s6Ss
9. ;. IS reg .losss Nor. Fac. As. 1855
y. 5. Q. As reE.-1il N. y c. q ST
L. 5. o. Is coup.H3 L. IS .... lO7lS
Z. :. 5s reg---.-.ll2 \. * w. con. is. 94la
co -