The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-01-07

The volume OF this selling In New York
was not formidable, but the sentiment
al effect of it was decisive in driving
prices downward throughout the list
and discouraging buying of stocks. The
further sharp decline in interest rates
in Berlin and London precluded the
explanation Of money stringency to ac-
count for the selling, and made it ap-
pear that its motive was political, The
friction between Great Britain ard
German mail steamers was not left
alone as an explanation, the reported
movements Of Russian troops towards
the Afghanist3u frontier arOusing the
apprehension Of further embaTrass-
ments for Great Britain. A leading
authority on the sterling market re
corded his opposition that as long as
the TransVa8I war continued. sold
would continue TO go out from New
York.
The board Of trades returns of Great
Britain's foreign trade for Decem Der.
showing q decrease Of over $23 co., G0
in imports and an increase Of S. 300, 600
IN exports, taken in connection with
the heavy selling of securities in New
York fer London account goes TO eX-
plain LOndonS continued control over
the International exchanges and ability
to draw gold at viii. The lightneSs
or the outward movement Of cotton
from this country also keeps up the
rate of sterling exchange While the
selling for foreign account was being
executed there was no disposition to
keep above the London parity, and
pressure against some leading indus
trials, especially sugar, was added.
With the cessation Of the London
selling and the appearance of the bank
statement there was an improvement
in sentiment. Losses were partly re-
covered and the closing was firm on a
good volume OF business, the fact that
the surplus reserve was maintained
and even slightly increased in the fact
Of the gold export movement and a loan
expansion OF 81, lGl, 400, afforded much
encouragement over the domestic
money situation.
The stock r1srket moved in an ir-
regular manner all week and the mo-
tives Of the operations have not been
by any means clear. The confusion is
largely due to the fact that profession
al operators were closing up contracts
10 which they had committed them
selves in expectation Of the week 8
events. SUCH a movement now usually
tends 20 nuliify the influence of the ac-
tual event when ii occurs. Thus none
of the rules in stock exchange specu-
iati0n is 10 buy in anticipation of the
early January demand caused by re-
leased dividends and interest money
seeking investment.
Last weeks strength in stocks was
due very largely TO this autiCipatory
buying, and the cOrOllaFv Of this buy
ing would be selling TO take profits this
week when the dividend money began
10 be disbursed. But while one set Of
professional spectators IS seeking to
q Q
street REGARDS as the outside public.
there is always another set aiming to
make profit out Of the first set them
selves This weeks events prove that
very heavy lines Of short contracts
were put out last week. on the theory
that antIciDat0ry demand for stocks
would prove to have outrun the real
demand This week, and the attempts
70 realize would break the market and
offer opportunity TO cover at profit.
This element has on their side the
argument that the recovery in prices
from the level of the December panic
had already outrUn the usual rebound
after such disturbance. and that a re-
action was Due from the selling Of
stock bought in the panic. The short
sellers argued also that the money
market would not show immediate re-
lief after Jan. I, and that the return of
disbursements to the market viii be
retarded. Such speculative commit
THentE must be taken into account TO
explain the apparent contradictions in
price movements on new developments.
The event proved that the shorts mis-
calculated the extent Of the new. in
vesment demand and the relief al
ready afforded the money market by
last months drastic POPULATIONS. Their
operations were mostly in the meTcuT-
ial industrial specialtieS, notably 81
gar, and the demand to cover shorts
has caused some excited advances and
IeveTish fluctuations this week in that
depar tment Of the list. In the railroad
lost for the most part changes were
small, though business was active and
well distributed
There was considerable selling to
take profits by last weeks professional
buyers, and there was a steady stream
of liquidation for foreign account until
the latter part Of the week. This was
attributed 90 Berlin account and was
not fully explained. The Berlin money
quotations had not shown a condition
Of strinsency sufficient to force large
liquidation, and alarming rumors of po-
ltiCal complications between Great
Britain and Germany were deprecated
at official sources. but the home de-
mards for securities proved sufficient
10 absorb offerings and sustain the
level OF prices. The trunk line group
was notably strong, led by New York
Central. Speculative sentiment is very
clearly formulated as 10 the prospect
Tor values. Investment considerations
rule for The most part, and buying or
ders Of this character come in on any
reaction and serve as a support. On
any considerable advance in prices they
show a falling Off.
The high prices ruling throughout
the industrial and commercial world
causes some questioning in Wall street.
f-her8 the r=celt sharp lessons from
Ihe consequences Of price imitation has
been taken TO heart. The growth Of the
proportions Of operating expenses Of
railroads by reason Of high-priced ma
terial I'm the monthly returns published
are impressive. The effects TO ensue
from the advances IN railroad rates
now going into force on the volume Of
railroad traffic VIII be keenly studied
IN the light Of complaints by shipping
interests. The Well-hlled order books
ia the departments of the is0n industry
give confidence in the existence Of con-
tinued prosperous conditions. but the
future demonstration Of the possibility
of profitable consumption Of high
priced primary products is awaited as
an index Of the duration of the period
Of prosperity.
The bond market has been less active
than stocks, the level Of prices on pres
ent returns Offering fewer attractions
than in stocks. Z. S. 3's, old As, new
IS and the SIS advanced y in the bid
price.
Bond Quotations.
n. 6. 2s reg...-.1 021k AZ. x. & T. 2rds. ga,
l. s. IS reg.-..-1097s NJ * q T. As. 29zs
T. S. IS coup. 1908 n. Y. C.. lists. 1ds1s
70 ~ 4 e