The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-09-17
Thrown Into Generalization BY the
Weekly Bank Statement.
PRICES ARE FORCED DOWN
STOCKS SOLD FOR WHATEVER
THEY WOULD BRING.
Losses In Cash By Banks For Week
Were Sufficient to Bring Surplus
Reserve Down to Within Quarter
of Million Dollars of the Legal
Requirement.

New York, Sept. 16.-The appearance of
the bank statement effectuaIly dispersed
all the encouraging illusions that sPeeula-
tive holders of securities have been in
dulging for several days past and -threw
the market into Generalization. Prices
were forced down by plunges and very
heavy blocks were liQuidated apparently
for whatever they would bring. L ne local
traction stocks were Speclal mar n,
seemingly on the theory they had not re-
sponded adequately in sympathy Win
Brooklyn Transit. metropolitan street
railway slumped an extreme l4hs points
and Manhattan 6. Brooklyn Transit IL
self was somewhat relieved from the Sc
we're pressure and held firmly at ~ or
above through most OF the STORM IN lle
late market The other Flower stocks
Were fiercely attacked Peoples Gas
dropped nearly 4: Rock Island "a, ana
az and Tobacco SS4. Losses elsewhere IN
the specialties extended between Z ana s
points in numerous cases. 81. Panl sui-
fered from continued liquidation even be-
fore the late break and after the pank
statement appeared it dropped an extreme
~ to lbs. Many railroad stocks 1en a
p9 The violent declines invited the taking of
some quick profits by the bears which
caused feNerish rallies. In Metropolitan
the rally reached over points, But the
tone of the speculation at the closing was
completely demoralized and Prices IN
many cases were still being offered down
rapidly in the frantic efforts OF holders ID
unload
The losses in cash by the banks for the
week were over 2.000, 900 less than had
been foreshadowed by the known move
ments, but on the other hand contrac-
ton in loans had been expected to reach
as high as 81, 100000 according to some
estimates. AS the returns showed a re-
duction of only $l,Sd, 400 in loans the net
result brought the surplus reserves down
to about a quarter of a million dollars OF
the legal requirement Stocks held on
margin and with borrowed money have
been forced to sales in large volume DUR
ing me week with the result Of raids on
the market. prices reaching consider
able figure in some cases.
Last Saturdays bank statement show
ing reserves of a number of the clearing
house institutions already below their
legal limit. made il certain that there
would be loan contraction and the bears
were eager to anticipate the selling which
was in prospect. Rates for call loans
were marked up on Monday and Tues
would-be borrowers who were seeking to
shift loans which had been called. The
volume of liquidation indicated clearly
enough that many were unable to get &C
commodations, even at the higher level
The bears sold so induStriously that their
endeavor TO cover short contracts worked
q sharp rally on Wednesday, when the
banks ceased to call in loans and the pres
sure of forced liquidation was relaxed.
But when the demand from the shorts
was satisfied the market fell back again.
Inc reaGliOHdEN tendency WAS emphasized
by the refusal of the ST. Paul directors 10
extend the disbursement Of the large sur
plus earnings of the year beyond the reg
ular dividend rates. The decision was
calculated to have the more effect on the
railroad stock since many stocks have
been lifted on speculative buying based on
expectation of increased dividends. Few
OF these stocks can snow as large a sur
MUS of current earnings as st. Paul. and
many are in far more urgent need of ex-
penditures on structure and equipment in
~.
The annual report of nearly every import
ant railroad that comes TO hand contains
the same story of diminishing rates for
transportation. Ton mile revenue was
never so low before and is still declining
and the further reductions in ton mile
cost of operation thus made necessary is
only to be achieved by enormous OUTLAWS
of capital for improving road BEDS and
track equipment and structures. putting
down of grades so as tc make possible the
carrying of heavier train loads.
The realizat ion of the money stringency
after the banks had reduced their liabili-
ties on account of loans led to an optimis-
It's mid-week view Of the money outlook
wmcn, however. was not only long main
tanned. A somewhat exaggerated effect
was produced on sentiment by the decs-
ton OF the treasury department to anti
cipate the payment of October interest on
government bonds. Last years experience
in a similar period of stock market need
Of money demonstrated that holders OF
government bonds were not inclined To
avail themselves of the offered privilege
The relief at best would be small and is
not Immediately available. With continued
demand for cash in sight both from the
treasury and from interior money centers,
no source of replenishment is discernable
Bankers, In fact express themselves as
well content with the existing rate for
money and are not disposed to seek means
for the relief of speculative borrowers.
They hold the view that check on undue
speculation and wedding out of weak
speculative accounts, makes for the safety
OF the financial fabric.
The causes of the firmness of sterling
exchange with money rates in New York
far above the London level and a sun
posed credit balance in our favor of many
millions does not find very adequate ex-
PLANTATION. There are said to have been
large receipts from abroad of securities.
but selling from that source has not been
in evidence through the regular agencies.
Foreign houses in New York have lent
money mere during the week The purpose
may be TO ease the money rate and so
defer the pressure on London for gold i'm
I'll the Transvaal crisis has resolved it.
self in some way
Bonds moved in sympathy with stocks
but not as widely. United States As adj
ranced p in the bid price