The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-03-18
Rank Statement Causes a Sur
prise on Wall Street.
REDUCTION OF SURPLUS
WAS BUT ABOUT HALF WHAT
WAS EXPECTED.
loan Contraction of S11,311, 400
shown-Relief For the Money
Market Looked For in Various Di-
rections-New Currency Law
Causes Suspension of Speculation.

hands today. There were cratic fluc-
+,,stious and active speculation in Third
Avenue over a range Of 334, and Sugar
continued to share with that stock the
largest amount Of attention. Tonnes
sea Coal advanced 3 points, and gave
e,,upethetic strength to other iron and
steel stocks on the action Of the diree-
tors in placing the common stock on
the dividend list by ordering a dis
brrsement Of the per cent, after pro-
gliding for the claims of dividends.
There was a good market for Ameri-
ran stocks in London, and an early ad-
vance in sympathy here, but the weak
ress of the local traction stocks and
uoeaeiness over the bank statement
caused sagging market up TO the
time of the appearance of the state
1uent when there came a smart rally.
A Sudden drop in Third Avenue to be-
Low, Is and renewed weakness in the
other traction stocks checked the ad-
vance and settled sentiment. But the
closing was fearly steady, and showed
net Gains except in a few stocks.
THE bank statement was a surprise
in many particulars. Wagers had been
freely made that the surplus would be
entirely wiped out. The fact that it was
reduced 10 little more than half, there
fore. had a sentimental effect against
the bears But the surplus is so small
IN any event as to leave no great diff
ference IN the condition reflected by
the banks What was of special signiti-
canoe was the loan contraction of SILL
81 400 This can only mean that the
process Of liquidation has commenced
As,f-. txrf 10.
hanks here and elsewhere to buy gov
eminent bonds for the purpose of TAX
ing advantage Of the new refunding
law. Chiefly from this cause the loans
Of the New York clearing house banks
were expanded from Jan. 81 to March 10
no less than $50 965, 600.
The large applications making to the
treasury department for the conversion
Of present bonds into new IS gives
promise of prompt relief for the money
market by the disbursement of the pre-
miums on the old bonds. 1t is highly
significant also that the New York sub
treasury begins to reflect the payment
of pensions in its reduced drain on the
banks, thus promising relief from the
factor that has caused most uneasineSS
regarding the money market. On these
accounts the belief is held that tOday's
statement marks the elimination of the
decline in the surplus reserves.
The quotations made in tOdayS
money market were hardly more than
nominal as loans made on the stock
exchange on Friday afternoon carry
over until Monday. Not the least sur
prise in the bank statement was the
fact that as a result of the first week
the new bank currency law is in oper-
alton, there is an actual decrease re-
corded IN the circulation Of New York
banks of $50, 500
Speculative sentiment in the stock
market has been suspended during the
week between conviction that the new
bank currency and government bond
retundiHS law was bound to result in
an mvigOrating flow into the veins %
circulating medium, and a doubt
whether the effects would become oper-
alive soon enough TO cOunteract the
factors constructing the money supply
in New York and threatening a pinch
i'm the immediate future. The cOntin-
ued dullness Of the demand for stocks
during the latter part of the week has
prompted some throwing over of stocks
by tired holders, who had bought to
discount the effect of the new law and
were disappointed at the hardness of
the effect i'm manifesting itself.
There was some calling of loans on
account Of the diminishing reserves Of
cash by the banks and some selling of
stocks IN consequence. But the selling
seemed % be confined to professional
traders in stocks and those of lesser
Importance. Only part of the week s
cams We're lost and the general level
or prices are somewhat higher.
While speculation has been quiescent
there has haar, fr,x~0e-tr,,,,,,.+
peqally in the bond market, affording
an effective support to confidence in the
intrinsic value of securities. however
lhey may be effected by the immediate
e.A,Eehcles of the money market The
uIlucuIty IN the New York money mar
heI is due to the continued drain Of
OdSH INTO the United States Sub-treaS-
Wy. rms week it has amounted to
St'UO'N'0, bringing the total for the
.1Iee weeks last past 10 over SIG. 900 900
As the total surplus of government
Ir'ehueS for the month OF March thus
lar amounts only to between Sc. 600 600
ana $.VVp.0oo, it is clear that there have
oeen liberal disbursements on govern
MeAt account at other points than
New York. '-'''i'
But there is a continued demand
ertneless, from the interior points on
EN 1oIk Tor currency. These evil
-slteS OF an active demand for money
as we'll as the continued demand fo,.
-ans upon ths New York banks re-.
e-ly go TO show the strength of the hus-
ness situation in the country And
@,,y are So accepted in Wall Street
Nlgh conflicting opinion continues IN
ouefeu from more or less expert
tleS regarding the extent TO which
s-NA circulation viii be eyuanda5 nm
' me new law, and as to it's effects
ss- pEaes ana business. The conviction
-e-eraI that there viii ba IjharaI
.-peAslOn OF bank note ISSUES and tbst
liect on the money market viii
Imply De felJ TO the extent Of tbe M
cent increase in the circulation Of
o,,-... &c present CeTcSited to secure
-rf,,,,' lng circulation and Of the pre-
-bai- '-I tue sei.-s PonuS, payable upon
-tF conversion into the new > III -.
,s. Assurance is felt that the nav
Is 1u y. OF this premium will be made o,,+
So, ,ls Iunds in the treasury. if necAs-
ny, ~ avoid disturbance in the money
rs.;Asl rather by drafts on deposits in
-b--l even in the event Of drafts on
SO deposits, 1t is evident fbat +ba
Ma Ilnent bonds placed by the hanks
rr.. . me United States treasury &C CO
by -. LOT these deposits VIII be there
hs. 5e-eased and made available as
erc,, Tor additional circula sion Tn
asr .'af issued by the treasury depart-
lev aiming the provisions of the
o "a" clearly demonstrates a margin
r,sI.olt on circulation, even NJ fba
rs,.Ii1 high prices ruling FOR Fovarr-
us,s ponds. which is equivalent In mn
SUED , %. LOG for the new IS when is
have .Nnen ruling prices for the bonds
brnr Proved sufficiently attractive to
hol5s,' drse offerings from Investment
Whom ;, including savings banks To
out oAey are not available 10 take
hrss. Proceeds of these sales sea1-,ro
actic.nent have made an n, S1hiis
bonds market for high-grade raiIroad
50 ana are likely to continue to do
hgulasH lGes do not reach prOhibitorv
bank - 1t has been argued thai fbe