The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-08-27
WEEKLY BANK STATEMENT
FIGURES ARE SHOWN THAT
CAUSED SOME SURPRISE.
Dealings In Wall Street Have Been
Irregular and Puzzling During the
Week-Small Raid lfade By Bears
Condition OF the Money Market
Likely to Remain Firm.


short session, although there were i'm
provements. The London exchange
was closed for a holiday, leaving some
uncertainty as to the speculative senti-
ment of that center. which was de-
pressed yesterday. Added to this was
d weak tone in sugar on new crop of
rumors Of q new phase of the war in
the sugar trade. The new stocks of the
Republic Steel company, dealt in on the
exchange for the first time yesterday,
showed a Discrimination to maintain
the price established for them yester-
day, and Norfolk & Western and North
ern Pacific in the railroad group
showed a reactionary tendency. Con-
solidated Gas dropped an extreme AZ,
Brooklyn Transit was heavy and there
were other less important points of
weakness. In the second hour of the
session the traders manifested a dis
position to cover short contracts, APP
parently in the fear that the unfaVor-
able character of the bank statement
had been exaggerated. as proved to be
the case. Renewed demand from the
shorts forced up Consolidated Gas an
extreme "a. Mobile & Ohio gained )
and Northern Pacific rallied over
point. Graat Western preferred gained
8: Louisville, Chicago d Eastern Hi
nois St. Paul & Duluth and the To-
advanced an extreme "a and became
very feverish, serving to unsettle the
market.
The recovery in the general list, how
ever, held for the most part. n feature
was the movement in a number OF IN
significant stocks, including Peoria x
Eastern Kanawaha & Michigan, Keo-
kuk & DeS MOines and Colorado Coal
DEVELOPMENT company. In view OF the
forced liquidation in Brooklyn Transit
early in the week the extension OF cred
its TO the amount of S9,096.OOO shown by
the bank statement came as surprise.
The decrease in cash proved to be less
than q million. whereas the known
movements Of money indicated that 1t
would he So. 500, 600 The decline in the
surplus is. therefore, largely due TO in
crease of reserve requirements by rea-
son Of the loan expansion
Viewed apart from the previous eX-
agserated estimates, the return is weak
The changes are impossible OF eXplana-
ton from any transactions known TO
the public.
The action of the stock market was
very irregular and somewhat puzzhng
during the week. A number OF the
most prominent specialties and INDUS
trials showed extreme Generalization IN
the week The raid by the bears upon
these stocks were commonly supposed
30 be a. tactical maneuVer with the Cd
iect of obstructing the disposition CT
the general list to advance.
AS a matter of fact the violent breaks
in the specialties proved ineffective to
prevent the rise of various railroad
stocks. When powerful support in the
speciaaties frustrated the attempts OF
the bears to work further declines, and
the way seemed open for general al
vance in prices. the upward movenneht
was met by such heavy offerings 10 take
profits that sentiment Oh heS4Idtloh
reasserted itself.
A comparison of prices showed some
very substantial gains in small num-
Der of railroad stocks, and some Sc
we're losses in the industrlaIS. In the
majority of the standard railroad
stocks net changes are small, nor mas
there been any marked activity in these
stocks during the week. Quite a num-
Der of southern and southwestern rali-
roads show reactions from recent hlgh
prices on profit taking, which has been
on a very large scale. 1t has been sur
iciently obvious that the tendency OF
The market to advance was chiefly Que
to operations by pools formed py Pioe
fessional Spectators. The buying OF
Z. 600 shares of stocks and then blddlng
several points higher for 100 shares IS
a quite familiar process on Wall street,
but in a number of cases this week the
higher bid developed an astonishing
amount of stock waiting to realize. A
good deal of this, according to the
0ninion of SPECIALISTS, is that stock
that was bought at a higher level last
spring by that portion of the popula-
ton designated in Wall street as the
outside public" having held through
heavy decline, these owners are eager
TO take a small profit, or even to set
out without loss.
on the higher railroad and trunk lines !
prices were long ago made TO discount
expected increases in dividend rates |
In some cases these increases have not |
come, in spite of large gains in earn
ings. but prices have been maintained !
at the high level. The return on the /
purchase money at present dividend /
rates of many standard railroads is less /
than on high grade bonds. Moreover. !
the great activity in all branches OF !
trade and industry and the employ |
ment thus found for money has made |
a rate for money which temptS 10 tie (
conversion of securities into floating !
capital. Last year authorities in the !
financial world predicted that the re- !
turn on capital would be permanent at /
8 to 31k per cent, and prices of high /
grade securities were run up according /
". With the money on the market I
yielding 4 per cent or better. in loans, |
the holder of stocks and bonds on the |
high level of prices becomes somewhat
railroad bonds and on government
bonds, both here and abroad.
That money is likely to continue firm,
or at least at the present level, is the
evident expectation of the worlds
financial authorities, as evidenced by
the precautionary and strengthening
policy of the banks Of England, France
and Germany, which is continued even
after the considerable accumulation of
reserves already effected. The same
policy is in force by New York clearing
house banks. Whatever present ease
is apparent in the money market is
obviously due to the quietnesS of spec
ulation and the considerable liquida-
ton already induced by contraction of
loans. In this condition of affairs it is
natural that spectators should have
turned back TO middle and low-grade
issues which have prospects of early
upon the dividend list, or of
an increase in the rate of distribution !
on account of largely increased earn
ings. The most promising field OF
operations has been among compare
lively obscure stocks, the chances of /
which for increased returns have not
been already discounted by previous
active speculation.
Activity has increased in the bond
markets. but gains have been confined
to speculative issues. United States
new As declined g, old Is. registered.
K. and the IS Is in the bid price.
Bond Quotations.
[. 5. IS .10oIs NJ. X. & T. As. a4ss
L. S. Is reg......19S1s n. Y. c. 1sts....Iils. /
= &c y - Z