The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-10-07
STOCKS IN THE EAST
Market Firm in Face of Unfav-
Orable Bank Statement.
WEEK SHOWS ADVANCE
CONDITIONS GIVE BULLS CON-
FIDENCE IN FUTURE.

Now York, Oct. 6.-Attention center
Cd on the bank statement on the stock
exchange today. But the very heavy
decline in the cash reserves of the
hanks seemed to have little effect on
speculative sentiment, beyond a fiutter
amongst the smaller class OF traders
who offered prices down after the
statement appeared. The larger specu-
1ators who have been bulling the mar
kat during the week seemed content
20 stand by and watch the effect of
the statement on general speculative
sentiment. The steadines5 of the mar
Let under the showing by the banks
seems surprising, when Ii is duly con-
sidered thai great stress has been laid
bv the spectators for the rise on the
offsets to the interior drain of cur
rency which were expected to mitigate
the CASH loss. Even yesterday when
the movement TO the interior was
known to be large the maximum esti-
mate Of the decline in cash did not
reach S6.O00,000. The large payment of
Pacific gold drafts last week was ex-
nected to moderate. that showing under
the system of computations by daily
averages, but instead OF that the loss
Of the cash for the week was run up
TO 1914, 700, and the remaining surplus
Of the banks is cut in half. The in
terror demand for cash has been larger
than any previous week of the sea-
son and far in excess of any single
week in the fall season of last year.
The extraordinary cotton movement is
undoubtedly responsible for the show
ing. The equanimity Of spectators in
face Of the bank statement must be
due to the conviction that the heavy
movement Of cotton to the seaboard
insures a continuance of the export
movement.
Cause for Weeks Advance.
This weeks further advance in the
prices of stocks cannot be attributed
10 demand from the short interest
the same a last week. There has been
some covering of short contracts on the
rise and the professional operators
who have the advance in hand, evil
IDENTIFY hope to dislOdge the long stand
ing short interest which has persisted
in the stock market on the theory that
the business reaction viii be continued
and warrant further shrinkage of
prices. The bull party is evidently
playing. also. to attract an outside
buying movement of the class which
nothing but a rapid advance in prices
brings into the stock market. The eff
fort mas not proved entirely unsuccess-
ful. but the new buying was hardly
suihcIent 10 absorb She profit taking
by professionals, who sought to re-
duce their commitments at a moderate
advance. The favorable increase Incl
dents or the week have been made the
most Of by the bulls, but the loudest
prOtestatiOns are of confidence in the
ultimate outcome Of conditions over
which the public at large is still evil
IDENTIFY IN doubt, especially a revival of
business to last years high level of
prosperity. The manipula we char
aCter Of the market was evident from
the number Of assertions put into cir
he s-rr
failed of verification. A positive an
nouncement that the coal strike had
been called off served its purpose in
rushing prices up late one day and
there were various rumors of absorb
lions and consultations of railroad
systems. while brokers vigorously bid
up the stocks concerned with a pal
pable disinclinatiOn to avail themselves
or lower prices to absorb the stocks
But it was notable that the advances
thus secured did not bring out any
heavy offerings from other than specu-
lative bidders. and price reactions were
not severe, even when the unveraciOus
character of the reports was recognize
ed.
Bulls Have Confidence.
This undertone of firmness gave
confidence to the bull following The
hopeful views expressed by authorities
in the iron and steel trade had a
marked influence on the much de-
pressed stocks in that group and af-
fected the general list favorabIy in
The declaration of the
regular quarterly dividend of 2 per
cent in Tennessee coal ended a bold
bear campaign against the stock,
based on positive assertions widely
published, that the dividend would be
reduced or passed. The subsequent
rebound in the stock had a reVivifying
influence on all the stocks in the steel
group. The placing of some large
orders for freight cars was another
element in the strength of the group
r rom the technical side, the compile
IlOn or some recent orders for liquida-
tlon OF various stocks was a relief to
the market and IL facilitated the ad-
vance. But the point probably most
relied upon by the bulls was the prom
lse Of early imports of gold. and the
apparent acquiescence of European
mone1 larkets by refraining from ad-
FdnclL6 their discount rates.
There has been only a Slight increase
IN bond business and prices have
moved irreguiarly. United States new
declined Il per cent since last !
SATURDAY.