The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-05-28
Uncertain Crop Aspects Have Their
Effect On Stocks.
BEARS HAVE THEIR TURN
THERE WAS A HEAVY DECLINE
IN VALUES.
Credit Balance Abroad Has Been Ex-
hausted, and An Outward Move
ment of Gold Is Looked For-Sat-
urated Condition of Public De-
mand For Securities.


New York, May 27.-There was a mark
ed disposition in the stock exchange deal
ings to sunder the speculation in railroads
and industrial specialties. The immobility
of the standard railroad stocks in face of
the Generalization in Sugar and Metro
politan Street Railway was strikingly like
the midsummer markets of yore. when
Sugar was likely to absorb half TO three
quarters of the total dealings, and when
many of the industrials now traded had
not yet been conceived. The bears SEEM
ed TO have gathered fresh courage and
made quite savage onslaught upon Su-
gar, the tobacco stocks. the New York
municipal stocks, Smelter and Steel q
Wire. Losses in the railway list were in
significant in most cases. There was q
Simultaneous decline in New York Central
and Pennsylvania, which was in rather
marked contrast to the later strength of
some of the so-called Indifferent trunk
lines.
The first hour had not expired before
an active demand sprang up for the
Reading securities, based on the strong
showing of the April statement of earn
ingS. A decrease in operating expenses
of the coal company and an increase in
gross earnings by the railroad company
combined 10 produce an increase in net
earnings for all the companies of $lOI, 6y4.
In connection with the good report sub
mitted by the New Jersey Central earlier
in the week and the May gross earnings
of the Ontario & " Western, the coalers de-
veloped quite a bouyant tone and enjoyed
substantial gains all around. Erie first
preferred shared in the advantages. The
rise in these stocks was carried to other
railroad stocks and checked the decline in
the specialties short covering, causing
rallies of between one and two points.
The failure of the market. to show any
marked response to the bank statement
induced fresh raid by the bears, which
carried Sugar down to 145. an extreme de-
cline from yesterdays close of 49, points.
The market yielded in sympathy, the spe-
cialties quite sharply and the railroads
pressure, but with net gains remaining
for most of the railroad stocks.
Sterling exchange made an unusual
show of strength for Saturday, with a
rise of Il of a cent due to the hardening
of rate in money and the demand on that
center from the continent for gold.
In connection with the plethoric condi-
ton here disclosed by the weekly bank
statement there is some renewed appre-
hension of gold exports. The demand for
railroad bonds continues strong at adyanc-
ing prices, Reading being most conspic-
uous. The exchange will remain closed
until Wednesday
When the season of uncertainty regard
ing the fate of the coming crops comes
around, speculation in stocks by the out
side public proverbially falls to min
imum, and the stock market is left TO the
professional room traders. The very fact
of outside neglect of the market deprives
it of support, so that the professionals are
almost invariably bears in a dull stock
market and bulls in a dull wheat market.
in accordance with the possible effect of
crop failure in the two markets. That
has been the state of affairs during the
past week. Nearly every professional
trader on the stock exchange has been a
bear this week. The late recovery in
prices is not conclusive evidence of
definite indication of a change of heart,
as the professional trader looks with APP
prehension always on few days interval
Of i,,ac &c n T.
ant developments.
The heavy decline in values compared
with the corresponding period of last year,
the rise in value of imports and the per-
sistent rise in the rate of sterling eX-
change were all incidents to reinforce the
argument that our credit balance abroad
had been exhausted and that movement
outward of gold was likely. The languid
tone of securities of numerous industrial
combinations was a striking indication OF
the saturated condition of the public de-
mand for them, and was taken 10 fore
show the danger of a break in prices gen.
orally of those which were inflated in
value and in weak hands, which might
demoraliZe prices generally.
There were evidences not lost sight of
by the bears of a desire to realize on some
of the heavy holdings taken over by pow
erful interests to check the panic due TO
Mr.. Flowers death. Much was made also
of the impairment to values of an import
ant group of stocks that would result
from the enactment of a public franchise
these various assumptions the bears sold
stocks quite assiduously during the early
part of the week.
A number of things during the week
changed the confidence in coming reac-
ton in prices. Most important was the
excellent traffic returns of railroads Tor
the third week in May. Beginning with
St. Paul. on Wednesday, with an increase
of S36000 in gross earnings over last year.
there was practically no exception to the
favorable returns. AS the comparison is
with an unprecedented period last year, 1t
could not fail to have force.
Reports of damage to European crops
during the week suggested d future price
for wheat that would attract movement
of the reserve in farmers hands conSti-
tuting the invisible supply. the amount OF
which is believed to be large in spite of
the large movement last year. 1t was
sufficiently obvious that the declines in
prices of stocks induced by the short SELL
ing did not bring out any large offerings
of stocks arguing confidence In the hold
ers in their future value. There mas oeen
pretty steady demand from abroad for
the standard railroad stocks, and outgoing
steamers carry large shipments of securi-
ties. The growing caution of the public
towards issues of new industrial combina-
tons and a falling off of the furore of
speculation in such issues is unquestion-
ably a healthy symptom, and makes for
financial safety.
The detailed statement of the April for
egn trade shows a number of favorable
conditions especially the large proportion
of the increase IN imports lnclude0 IN ar
ticles in a crude state for domestic indus
try" OF the total net increase in imports
of 914S,077. this item absorbed S5,3l6,4l All.
The prevailing ease of money and the ac-
tivity reported by specialists in the va
rious departments of trade and business
were ali reassuring factors. There has
been a very notable demand for all avail
able issues of railroad mortgages during
the whole week.
There was a moderate absorption of
gilt-edged and government bonds. But
the favorites are new issues for refunding
and reorganization purposes in course of
disposal by reorganization syndicates, and
which may presumably hope for stable
higher range of prices after this floating
supply has been absorbed by investors.
The old As, coupon. and the S's advanced
u, and the old As, registered, and she SIS
X in the bid price
The total sales of stocks today amount
ed to 24I. 500 shares. including: American
Mating 200; American Spirits preferred,
2 900; American Steel & Wire. $500; Amer
lean S F. Co.. SO. 200; American Rubber
Co. g 100: Atchison preferred. 200; c.. y.
& O. rights eco; Brooklyn r. t. Co., 20
800: G.. b. & O.. 24O0: Consolidated Gas.
10 200; Consolidated Tobacco, 1890; Federal
Steel 500: Federal Steel preferred, 1900;
Mexican Central. 500; Metropolitan Street
Railway. 1900; Northern Pacific, $500; st.
Paul. 5000: Peoples Gas of Chicago. 400;
Reading first preferred. 12,4Oo; Union Pa
ci6c 400