The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-12-17

Elected from the London exchange and
by 4. end of the first hour seemed 10
have overcome the weakness. The ap-
rearance. however, was deceptive. Act
i've LIQUIDATION was in full force early
in the second hour and ate away the
recoveries that had been achieved,
forcing prices below the opening low
level The market closed with all the
symptoms of decentralization and at the
lowest prices of the week.
The days net losses for the principal
active stocks run from 2 to points.
In the railroad list the greatest suf-
ferers, naturally, were the shares that
are listed on the London stock eX-
change, and especially those which
have been recent speculative favorites
there, such as New York Central,
Pennsylvania, st. Paul, Louisville, At
Gibson preferred and Missouri Pacific.
In the list OF industrials and special
ties the New York City stocks, Sugar,
Tennessee Coal and others of the iron
and steel stocks were the largest losers
The early resistance was due in large
part to the determined support afforded
by the distribution of large buying or
ders throughout the list by inside in
terests in the various stocks. These
interests had not waited for the open
ing here to do this, but had cabled
buying orders to London.
London. in the meantime, had been
comforting itself with rumors from
South Africa of retrieval of General
Buffers reTefsals. The fact that to-
days steamer is the last that will be
available for shipments of gold gave
relief from that direction during the
coming week There was a resump-
ton of selling orders by cable during
the second hour and growing uneasi-
ness over the situation in Boston,
growing out of the announcement of
bank failure from that center.
The bank statement was construed
as unfavorable in the items of loans,
although the cash changes conformed
closely to forecasts. The small loan
contraction barely served to offset the
cash decrease. so that the gain in sur
plus reserves is only nominal. The
statement does not include today's gold
engagements, which aggregate $780,,
000
The weeks experience in the stock
market has been severe one to show
such small improvement in the money
situation. 1t is evident that large part
OF the money called in has been put
out again, under the urgent stress of
circumstances. A large amount is
known to have been transferred to
Boston to strengthen the monetary
situation there. The local money out
look was the determining cause of the
late break in prices and withdrawal of
support
1t is many months since the stock
market has been subjected to so violent
and drastic a liquidation as that of the
past week. At intervals it was met
with some aggressive support by
friends of different stocks, and the
professional bear operations have oc
casionally closed out their short con-
tracts at the inviting profits offered,
but at other times all other support
81 t-e-
of securities were being forced to snle
by the wiping out of margins The
shrinkage in values reached an enor-
nous aggregate, competent estimates
placing the figures in the hundreds of
millions. AS a consequence, credit ia
cilitieS were heavily cut and stocks
placed as collateral We're forced to sale
for the protection of money lenders.
The bear operators We're very bold
and aggressive and offered prices down
in a seemingly reckless manner wher-
ever any indication could be had of
large speculative holdings. In some
of the industrials, which have been
manipulated by speculative pools. the
violent decline in prices dislodged some
enormous holdings and the bears reap
ed sensational profits. The combination
of circumstances threw the market into
conditions bordering on panic several
times during the week.
The markets quick response to any
development in the London money
market pointed strongly to that as
the seat of trouble All the powerful
resources OF the English financial CEN
ter were even being eXerted to attract
funds to meet present and prospective
urgent needs. The bank of England
statement shows a continued drain on
interior points To supply the eXtraor-
binary trade activity in England just
as the New York banks have been
drawn upon from interior points in
this country. The extreme depression
in the London stock market of the
news of the set-btck to the British
operations and the convulsiye recover
les capsed by even vague rumors OF
successes. warrant the deduction that
the English money market had adj
justed Itself to hopes of earlier relief
than now seems possible by resump-
ton of shipments of gold from South
Africa.
The urgent need Of other relief is
manifested in the vigorous upward
movement Of sterling exchange at all
the worlds money centers. Both at
Paris and New York the rate reached
the gold export point during tie week.
The importance attached 10 the matter
in the New York stock market was
demonstrated in the decentralization OF
Wednesday afternoon, when prepara-
tons were made to export gold as well
as in the sudden recovery of Thursday.
when a relapse in the sterling rate
raised the hope that gold exports were
for the time averted.
Although the sub-treasury. absorp-
ton of funds from the market had run
up 10 nearly s5,eG0 GOO before the an
nouncement OF the treasury depart
nleRt's decision TO forego a rebate in
anticipation of The January first inter-
est-on bonds. that measure is looked Il
relieve the drain from that source for
the immediate future. The course of
the interior exchanges has indicated a
response there also to the need OF re-
lief IN New York, and funds have been
received here, not only from interior
pOslts in this country, but in Canada
With the relief thus secured from the
resources the effect of the gold exports
was largely Offset.
The stock exchange liquidation itself
has gone TO such lengths as to mater
tally replenish the supplies of available
made ii evident that the interests af-
fected were larger than the ordinary
professional operators in stocks.
The weeks developments in Boston
show that the necessity OF support in
the copper mines market was a factor
in the situation. Large selling was at
tributed also TO the account of impor-
tant western centers. The demoraliza-
ton produced IN some of the newer in
dustrial stocks was an indication of
the burdensome nature of the under
writer's holdings. and the narrow mar
gin for many of the new notations,
which have been below the listing
rf-iceS ON the exchange in many cases