The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-02-25

rsr v.ra. Feb. 24.-Tne general
-...r-.f.,. --nument as reelected in
.-.. --,.r. D.. rekst was a good deal OBJ
.,.r-6 today by The generalization in
.rr..r avenue Active trading in a
stack with resulting drop in the
...... .r ...r ten points. Is bound TO
t.-. -n-.sIable effect in "a narrow
r..-.-.. however peculiar and iudivid-
mall mas H. JHe cause which induces the
selling a rather violent break in
tennessee Coal had the same tendency
Asa matter Of fact, traders were dis
-..-a. 90 SELL stocks on the general out
i..E especially the reports from trade
eurf7r.rt.s that prices of materials, es-
ra.a.y Tina metals. were declining.
r..-. Wa also the fear ta6t the cut
ling of grain rates on the trunk lines
1.F spread 10 other class hcatioDs,
and some rather striking declines in
Nh. volume of bank cledriuss COM
r.rai with the corresponding period of
ms. saar Reports by telegraph 20 the
Financial Chronicle for five days show
a large shrinkage, not only at New
York Boston and Philadelphia, but at
Baltimore. amounting 10 over O. per
cent. and az st. Louis of nearly 4 per
cent New Orleans, however, expanded
f-4 .T-ariugs over a per cent, Chicago
80 Der cent and other cities outside the
seven leading cities. 81 per cent.
railroad earnings continue to show
large increases, sINty-One roads, which
have already reported for the second
week fu February. showing an average
increase of 3045 per cent over the cor
regn0udiug period of last year. Strong
~
the third week 10 February by the st,
Paul Hooking Valley, and the RIO
Gauds Western. There was consider
able buying OF the COai-CaTryinS rail-
road stocks and a rallying tendency in
the market. which was checked some
what by the renewed weakness IN
Third Avenue and the New York uIl-
tiles in the final dealings.
The decrease i'm cash shown by the
bank statement was very near TO the
estimates But the superstition that
the large rate of loan expansion had
been checked proved erroneous, Chief
Iv by reason Of the additional loans OF
SLICES. 900, the surplus reserves are fur
Uher depleted Co the extent of Si.35l 10.
There can be- no doubt that bankers
are influenced In their Hberadty in
extending credits by the possibility of
currency imitation authorized by the
pending financial bill. Sufficient at
teuJion has been called to the fact that
the bill authorizes an extension of the
bank note circulation to- the par value
of the bonds at present deposited %
secure circulation, which would be a
IU per cent increase.
But not $50 much attention has beer
given 10 the fact that bonds at present
deposited SEQ secure circulation amour
60 only S235. SS0110. while natiOua
banks capital amounts To S6e6 600 00h
which fixes the limits of the bank not
circulation permitted. The refundin,
plan provides for the issue of new
bones rD the amount of the presen
premium on outstanding bonds which
VIII Doe available for deposit 20 secur
additional circulation. The additional
profit afforded ON circulation by tn
new provisions. IL is believed. VIII in
yite bank note expansion 90 the limi
authorized. unless the premium on IN
new bonds becomes excessive.
The breaking of the stock eXchane
week by a holiday has had some iufu
tuCe in Curtailing activity i'm the So
uuritics market. Professional specu
I8tors are always diSinclined 10 entt
uuau commitments when a period
suspension of trading is approachin.
with possibilities of events OccurTin
which viii materially affect value
Bur this motive is by no means suft
u.yut tu account for the persistent Jul
hess of the stock market. in the fac
OFF the favorable business condition
which are reflected i'm all the news
the day.
Increased business activity expand
ing industries "a high level of earning
t.r railroads and Industrial corpora
lions. aI make for higher values
securities Either the dividend return
ar- assured of an increase. as i'm tn
ease off stocks or the payment Of
fixed return Isl given additional SecuI
r-y. as In the case of mortgage bond
Tur Tor other points of view. the &C
1.r.ry and prosperity of general trad
operate against an advance i'm IN
price ut the securities. The demand ia
money fur mercantile uses or for in
au-uratfuu Of new enterprises en-
eruH.n.s ON the surplus reserves
financial institutions and leaves no ac
foundations uf idle funds, which an
eagerly offered for employment
speculation .l securities
Pursued lH Us logical conclusion. ac
tive trade and industrial development
Tend tH discourage even lnNeStmeu
NuyIu- .t securities as we'll as purel
speculative ruviuE. Because of an ac
tive mercantile demand for credits,
raising of lU" interest rates may attraC
the transfer nt funds from fixed invest
mtut Tu securities te Use iu the none
warks, THAT Has what happened Z
cur securities iu foreign markets las
prinE when Quar- demand upon foreig
money markets for settlement Of on
.arolb-. trade balance ran up the in