The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-06-17
STOCKS IN THE EAST
Market is Active and Declines
Rapidly.
DUE TO TWO CAUSES
NORTHERN PACIFICS low DIVI-
DEMO AND CHINESE WAR.

New York, June 16.-The stock market
abandoned the attitude of waiting in
which II has been so long steadfast, and
gave Itself over TO active Liquidation with
All tie appointments Of a state of alarm.
TWc expected incidents We're the cause
Of this change. First of these was the ac-
uon OF the directors of the Northern Pa
cine, after business hours yesterday in
reducing the dividend on the common
STOCK. This was accepted as a well con-
sldefed and well informed decision from
conservative authorities shat a serious
shortage in the wheat crop in the north
west was to be faced this year and that
a period of declining railroad earnings
was TO be expected as a result of this
and the reaction in general business. The
effect was pronounced on the stocks of
grain carrying roads, and especially IN the
northwest and the rather numerous
groups OF stocks which have risen in
price on the score of good earnings and
hoDes of liberal dividend disbursements.
Ihe policy of extreme conservatism on
dividend disbursements adopted by the
Northern Pacific, It was taken for
granted, would have an influence on other
railroad directors,
BY the end of the first hour, what
with the demand of shorts to cover and
supporting orders by the friends of diff
ferent stocks, the decline had been ar
rested and the pressure of liquidation re
Taxed at a rally in prices.
The second phase began with a resUmp-
ton of realizing in some stocks and was
preclpitated into acute weakness by the
publication of the bulletin reporting the
destruction of the foreign legations at
Pehn and the killing of the German min
lsJer there. This, though, without official
confirmation was accepted as throwing
the Chinese situation into an acute stage
ana the market which has been waiting in
hopes of a peaceful and satisfactory So
luton of that problem threw over stocks
in heavy volume After a mOmentaTy
pause, when room shorts began to cover
the decline was renewed and the clos
ing was active and weak at the lowest
The movement Of prices in the stock
exchange mas no significance this week.
The market was entirely in the hands of
room traders who operate on their own
account and generally close an account
before the day ends, taking their profits
or losses as the ease may be. The inertia
OF the market in face OF these profess
slonal operations is pretty good evidence
that the level of prices has reached the
normal and the real owners of stock are
holding them to await more definite de
Yelopments regarding the future.
The lassitude in the bond market is
especially significant, in view of the pres
ent low interest rates Tor money, which
almost invariably serves to bring an in
VeStment demand into the bond market.
The extremely conservative course
which is being pursued by the bank OF
France in increasing its gold supply and
largely reducing its Obliga 5iOns, causes
increasing surmises in the financial world
and keeps alive uneasinesS over the
Chinese complication. Special inducements
offered by this institution drew the week
shipments of s, 500, 600 in gold from New
York. The renewal Of this foreign de-
mand for gold, coupled with the calling
of government deposits from national
banks into the treasury, has awakened
some vague questioning as to the effect
of our money market. But the fact that
the government 3 per cents have been re-
called for redemption for this purpose
quiets any real apprehension
The bond market has fully shared IN the
duilness Of the stock market and the
movement of prices has not been import
ant.
u. 5 new IS have advanced p and the
IS 4 ia the bid price.