The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-07-09
Effect of the Publication of the
Weekly Bank Statement.
CASH RESERVES ARE LOW
WITHIN SMALL SUM OF THE
AMOUNT REQUIRED BY LAW.
Banking Authorities, However, See
Prompt Relief In Certain Pros
poets and Money Is In Conse-
quence Easy - Transactions In
Stock Market During Past Week.

New York, July S.-The character of
trading in stocks was much confused
throughout today's short session of the
exchange. There were points of agrees
sive strength which encouraged the main
tenance of prices. but the certainty of an
unfavorable bank statement encouraged
the continuance of proft-taking in some
OF the stocks which have recently adj
Vanced several points in price. On the
publication of the bank statement the
whole market sold off. and net gains were
preserved in only few cases. The liquid
atlon was by no means heavy and the
bears covered short contracts at the de-
cline, causing rally from the low point.
The denials of the reported alliance be-
tween Pennsylvania and New York Cen
trail led TO declines in those stocks. but
the amount was remarkably small.
The bank statement on its face presents
an extraordinary condition of affairs: 1t is
almost UNPRECEDENTED for the cash re-
serves to be down TO within a little over
S5OO0,OOO of the % per cent required by
the law at this time of the year. Yet e
banks expanded their loans during the
week nearly 100000. when they were
already at the highest figure on record
last week. The conclusion is unavoidable
that the banking authorities see prompt
relief in certain prospects. In fact the
easing of money during the latter part of
the week shows that the relief is already
at hand, 1t comes in large part from the
release of funds that had been accumu-
lated for the disbursement of semi-annual
dividends. 1t is also taken into considera-
ton that interior points are better sup
piled with money than ever before, so
that the conviction is held in banking cir
Giles that tightness in the New York
money market would bring funds from in
terror points to New York.
The action of the stock market this
week has justified the confidence of those
who bought securities last week in the
to realize profits quickly. The expected
demand for stocks was Forthcoming, but it
was so freely fed with offerings ac-
cumulated last week that the strengthen
ing effect of prices was Offset and the tide
turned in favor of reaction. Thus in spite
of a very active market for the short
week after the long holiday period, the
net changes are not conspicuous in the
majority of cases. The profit-taking was
most effective early in the week in Penn
svlvania and New York Central and the
either OF these, but the large and conf
dent buying of last week was discontinued
and prices We're not supported.
Much stress is laid on the large amount
of the years earnings that have been re-
invested in railroad properties resulting
in higher efficiency and paving the way
for future reductions in the ratio of OPP
Grating expenses. There were incidents
cOrroborative of the earlier rumors of far
reaching combinations of control of rail-
road systems. calculated to make posi-
BILE more economical administration and
to facilitate cooperative measures for
conducting traffic. But in spite of these
factors of strength in the general out
look the tendency toward reaction in the
railroads prevailed owing to the recent
conditions. Profit-taking was the main
factor. But there was in addition some
apprehension that spring wheat had been
damaged by heavy rains. and there Were
heavy damages to railroad properties by
the Texas Hood
The most potent influence toward reac-
tions was the failure of the money mar
ket to weaken as expected under the dis
tribution of half-yearly interest and divi-
dend disbursements. Time money could
readily be had at to 3l2 per cent. but
call loans were slow to yield below per
cent. In London both call money and
the discount rate fell below per cent.
the half-yearly settlement. Enormous
loans were lquidated both at the Bank
of England and the Bank of France: The
strain on the money market in Berlin
exchanges continuing to run against Lon
don. But confidence was shown that the
stringency there would also relax soon
and that no further demand would be
made on New York for gold. The easier
money conditions in London brought large
buying of stocks in New York for London
account until money rates there began
The weeks trading on the stock ex-
change has been distinguished by some
reawakening OF interest in industrial is
sues. as the market for railroad stocks
fell into dizziness on the reaction. The
older dvidend-paying 1ndustrials nave
been fdVorlteS. Dut some OF the newer ore
and metal combinations have also shown
signs of life, notably the coppers. Anal
gamated Copper has moved up several
points in the outside market, but is still
we'll below the original subscription price
and Anaconda has been active and
strong.
Bonds have shown increased activity
and strength. United States new As adj
vanced -, the IS y and the 5s Is in the
bid price.
The total sales of stocks today amount
ed TO $50. 49, shares. including: American
Steel & Wire 200: Sugar. 1880; Tobacco.
2. 400: Atchison. 6,000: Atchison preferred,
Il. 900: Baltimore & Ohio preferred; $500:
BROOKLYN Rapid Transit. 10000: Chesa-
peake K Ohio. $500: Chicago. Burlington
K Quincy. II. 200: Colorado Fuel & Iron.
4 600; Federal Steel. 1000; Federal Steel
preferred. 1000: Louisville & Nashville.
4. 200: Manhattan. 24.2O0: Mexican Central,
. 400: Missouri Pacific. 500; Ontario &
Western. 4.000: PENNSYLVANIA. COCO: Peo-
pies Gas 200: Rock Island. 400: St.
I Co IA ter