Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1899-05-16
Stock Market Yields to Pressure Of
Downward Influences.
GENERAL TRADE ACTIVE.
This Wears wheat crop Estimated nc
3is'so0.oo0 bushels, which is 3o,-
100000 Lcss than Last Year.

N'M hoih May la--Aftcr "a pro-
longcd struggle. the stock market haa
at last yielded to the pressure of down
wand Influences. The "buil" side has
had a hard task. For four months II
mas been striving to support the highest
range OF prices ever reached In the his.
TORY OF the market. There have been
.Ntranfdinafy causes producing that
iise' ana u viii b. pretty generally al
lowed that those causes have In "a large
measure warranted the advance. hut
we past weeks experience was not
needed 10 demonstrate that something
more than the intrinsic merits of the
properties " needed to MAINTAIN values.
IN unbalanced condition Of the ma
,hincfN or speculation " enough to
hfcak mnrSet In spite OF whatever
may be- claimed IN favor Of the invest
mcntH Ever since the opening " the
year the market has been In state u
hiEh nervous tension. In January. the
market was taken by nuipfine with an
unprecedented rush " Investment buy
lnE which put ~ prices of railroad
shhtea 10 level. yielding az TO per
cent. This started a speculative move.
mrht based on cNtraynEnnt cNpccta-
Tons and buying was carried to cx-
ccsaca through foinvesting the lnrrc
profits yielded by hlEh prices. This
always dangerous method ~ financing
speculation has been the weak point In
hffN AtifAA NJ ANN ANF lNNN NMN tilNff
months, and the position became c--
pocially critical ~ soon ~ the large
operators realized their profits
We might easily have witnessed a
smart reaction IN February had u not
been that new element of excitement
then seized the market. within two or
three months, between two ANA
THREE MILLIONS
Of now securities wcre issued. repre-.
HrniluH great consultations of industfi.
nl corporations. That event was an Ok.
ritlnE surprise. Occurring Himultnnus
ouHly with an outbufst ~ unusual busi.
ness activity, 4 was az first construed
nH another evidence ~ great national
development. ana from that Impression
the speculative spirit In the market r..
ceicvd new lease " life. the more 80
a. ths promoters Of the new Industrial
combinations found u to their Interest
Ia foster the speculative spirit and keep
W 'hr general boom. such IN extra
ordinary excitement, however, could
not BE- long maintained at fun pitch.
Differences Of opinion developed ~ to
the conservatism 81 "a new movement.
The banks maintained an attitude of
reserve towards u and within the last
two weeks there has been an abatement
Of the announcements 81 new conHoli-
daiions. With a turn In the tide ~ the
new lnduftfiala. an abatement Of spec
ulatlon In the regular list was insvit-
able. The bears" seized the oppnrtun.
ny for determined attack. and hence
the very considerable break ~ Tues
day.
Wednesdays market exhibited a splr.
tied effort 20 rally the ranks ~ the
bulls" Fortunately, London hap
pened 10 be Inca buoyant mood and on
Tuesday and Wednesday took fully
100000 shares Of various securities Ccf-
tain houses which have become inter-
eated m the new combines also con-
tfibuted their influence towards
nRAcINo THE MARKET.
and Wednesday, transactions showed
a considerable recovery from Tuesdays
decline. The force of IN. downward re-
action may therefore be- said 60 have
been hrukcni but at the same time the
market has lost considerable OF ~ In
trluflc strength. There has been a good
deal ~ compulsory selling. and not
few outside holders have been driven
out ~ the arena BY the professional
bear, Probably not a little Of their
stock has gone Into the hands ~ buy
orr whose object IL the merely tenn.
pnrnry one uf helping their own urgent
eide issues II u hardly safe, there
fore, 20 take u for granted
that the hrrgk OF Tuesday WIN
boom IN the market. Among the things
10 ~ Rscttthined before that can be-
assumed i. the extent 10 which the
Issues 81 the new consultations are
passing into Investors hands and into
speculative operations ana thereby dis
placing the older recurtieE II seems
safe q assume that quite important
amount Ut the preferred stocks Of the
now inhnftrlnln hfV now hanging over
the market for realization: ana. OF the
holders are willing 10 meet the market.
u n not impossible that the new In
AaaN N0.aa
upon tho value Of other stocks. In view
OF the entering ~ these new interests
Into Wall street, ~ viii be- prudent Ia
maintain a watchful attitude. Pro-
Videi the new corporations should
PROVE As SUCCESSFUL
~ their friends hope. therr can be- no
doubt that securities representing our
Industrial Interests Will In time proba.
bly, occupy a position on the stock c1-
chang" second only 10 that held by the
railroad companies. The determination
Of tnis problem however. must wait
A. later stage. the real Significance
OF Tuefdny'n break and Wednesdays
rallA can be- better judged. How FAR
both movements were real or mnnipu-
latve remains 10 be seen; meantime. II
viii b. wise Ia follow closely the drift
~ the market. buying ON drops and
taking moderate profits on rises. and
not losing sight ~ the factor that there
N a considerable amount OF new secur.
itlca awaiting an opportunity Tor sale,
and Of kind which may prove an I'M
certain asset u speculative holders,
whatever they may be a. permanent
inNsHiiusnt. AZ the moment there are
no now clements In sight calculated to
materially AFFECT the future course OF
the market. The remarkable activity
ln the general trade of the country
REMAISs UNCHANGED
aud may be expected 60 continue In-
dennltcly without any abatement. but
the question II whether this Influence
has nut been already discounted and
whether It's effect VIII so beyond gly-
Ing u mere stcadying tone 10 the mar
kct without producing any further con.
siderable Rise In prices.
The Influence ~ the crop prospects IL
at present neutral element. probably,
however, tht worst probabilities have
been discounted, aud any marked lin
prOvemrnt on the output f0rerhadow,i
In tho forecasts ~ the department ~
agriculture would be- nkeiy 10 Improve
the position NJ the railroad list. 10 far
aH respects winter wheat, the eondi.
lions on May lst are construed, by The
ntntistician ~ the produce exchange
uH meaning crup s2s 5000 900 btlgbsls,
which IL 10000. 900 bushels less Than
the Indicated crop at the same date ~
last year, That decrease. however. Is
much more than offset by the