The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-12-09
STOCKS IN THE EAST
Trading Is Inactive, With
Prices Irregular.
BUYING FEVER is OVER
PRoFIT-TAKING DEVELOPS RE
ACTIoNARY TENDENCY.


New York, Dec. S-There was very
little active trading in stocks today,
and the character of the market re-
manned about the same as for several
days past Tennessee Coal and. some
of the other industrials which have
been acuteIy depressed during the
week continued feverish and UnseJ-
tied. Tennessee Coal fell an extreme
SIS. and recovered , points in sympa-
thy with the late general strength of
the steel group. Federal Steel led the
rally and was helped by talk of divi-
dend distribution and of the adjust
ment by agreement of the disputed
points between the great steel COM
binatiOns. The movement of prices in
the general list was sluggish through
cut. The weak bank statement had
been so accurately fOrecasted that it
had little influence on the trading. If
anything prices were q little better
after the statement on taking Of bear
profits and in sympathy with the sharp
/ rally in the steel stocks, but there Is
no change in the Opini - that the cut
/ in two of the small surplus reserves at
/ this period is a serious phase OF the
outlook from a speculative standpoint.
/ The continued interior demand for
money is regarded as a striking evil
denCe of business activity and pros
/ perity. However, it win interfere just
! as effectively with the purposes of per
! sons who are holding stocks on margin
with borrowed money. The reported
J purpose of the treasury department to
/ anticipate the payment of over 5000
/ coo Of January government interest did
| not relieve sentiment to any extent, as.
/ experience shows that this manner Of
/ relief is cumbersome and slow in max
! ing funds available to the open money
/ market. Even in the stringent money
market of last fall, holders of govern
ment bonds were slow to collect the
/ interest offered by the government in
/ advance of coming due. The coming
! early settlements for which preparation
/ has already commenced involve the
/ disbursement of a larger sum of money
than ever before in the history of the
( country.
Irregular During the Week.
The irregularity of the stock mar
| ket during the past week is significant
! of the unsettIement of speculative sen
| timent and the present safety Of the
| voracious speculative demand, which
! took in all classes of securities without
discrimination for d time after cleo
/ ton. The decreased volume of deal
ings is a reflection of this condition OF
/ affairs The sharp reaction in prices
here and there represents the unload
take profits and alert to the declining
interest in speculation. This process
has served to reveal the collapse of the
early buoyant buying spirit The
Sugar episode was in some part an ag-
| graVatfng cause of this tendency OF
stocks. and in some sort merely an il
IustratiOn of it. The abortive specula-
ton in Sugar had its own motive in the
unwarranted expectation of a dividend
increase, but other stocks in the mar
ket offer an analogy. The industrials
! as a group are showing the effects OF
the pending problem of the efficacy Of
the new industrial combination as a
! financial device. The .'greener" new
industrials are more sensitive than
those with an older history, but the
same causes affect both.
| = The steel group offers the best eSs-
ample of the questions at issue. tbs
principal Of these questions IS whether
the capitalization is so high that only
| such prices for the product as invite
J new competition viii bring in the re-
quisite profits to maintain dividends
The actual disbursement Of dividends
| on these stocks and the course OF
events in the trade during the past
year here obviously failed to solve en-
tfreIy doubts on this subject in tine
minds of the speculative and invest
ment public. as is shown by the prices
of the securities
/ coming ear q ~HASlS-
The outcome Of events in the trade
, ! during the coming year are awaited
TO form a basis for more definite con-
I cIusions The profits of manufactures
! at last years level of prices, it is
proved. were so great as to invite tbs
bringing into activity of large aggTe-
/ gate of productive forces which re-
suited in an overpTOductiOn and neces-
| STATED heavy concessions to work OF
the surplus. The lower price leye
has driven smaller productive force.
into retirement again The future
value Of the securities of the grea1
combinations depend on whether they
can keep prices at a low enough ieVe
, to deter the smaller enterprises from
competitive production and still carr
dividends on their large capital Money
: rates have been higher during the Weel
but the money market outlook has no
prevented the continuance Of stronger
points in the market especially in TIT
low-priced railroad stocks.
The business in bonds on severa
2 days during the week has risen abov,
the level Of the dealings in the activ,
stock market after election. but ha'
at no time reached the high level of tn
January, 1922, period. The buying wa,
0 more or less speculative. and was es
r / peciaI1y directed to contingent inter
! est bonds and junior issues. Gilt-edg
: and high-grade bonds are quiet.
, United States refunding Is declined
[ u per cent, old As =, new As Is and 3
q and rs y per cent under the call prize
{ | a week ago.
Bond Quotations.