The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-03-25

-,--1 .,traat attaches importance at this
- 70 the attitude of London towards
49,. 49,. local securities market, for when
:. was seen from the morning cable
y .a+l-,es hat London had reversed its
M. .,t+,,5s Of Yesterday and had begun to
Inv American securities, the DISPOSE
zion manifest here yesterday to sell out
md take profits was completely al
.o-ad The buying for London account
-, supplemented by a rush TO buy ali
'lsssas. I0nGOn's influence was SHOWN
=, Inc leadership in the early market
- the International favOrites, Of which
K q. and d. e r. q. stocks were
- ConenicuOus Baltimore q ohio
- in the late dealings an extreme
~ ana retained its conspicuous place
A. the market throughout Pennsyl-
t,ania i'm which the transactions are
rsraIv on a large scale, was dealt IN
A. 6O0-snare lots, almost as though
that were the normal suit OF trans
rctions. and Individual transactions IN
re stock ran from that up TO 5000
shares which was the size OF the Dlock
taken when the price first touched l4O.
An Of the trunk lines were more or less
afecte6 by this movement, but the
rtreanl Of realizing held back the NOT
fox & Western stocks. TransS crions
of 900 shares and upward were ire
ouent all through the railroad hSt. and
bToclre of 1870 shares changed hands
In Atchison common and Southern Pa
cifr The Paeifics, especially Atchison
en5 sor1s Of the southern and some OF
tba southwestern group, were heavily
ALI in all day. The CTTanserS were
les active. but the group was strong.
There was some tendency 70 reaction
IN the local fractions, and the iron ana
steel stocks were quiet. Otherwise
There was no important exception to
the general activity and strength OF
the list. The closing was active and
fairly buoyant at the prices.
An early fnkling was obtained Of the
probability Of q favorable bank state
ment based on the growing abundance
OF funds offered to borrowers. The
heavy loan contraction. in spite Of the
outbreak Of speculative activity, indi-
Gates how important an element was
the buying of government BONDS Tor
speculation in tying up the money mar
ket The late rally in governments IN
dicates that the principal liquidation
rn this account has been completed
i
suited IN a decline in deposits Of nearly
Sl4O0O.OO0. and a consequent reduction
in reserve requirements of S3,491,570. As
the loss in cash was only $360,1OO the
surplus was benefited to the substan-
tial extent of $3lS0,S75, bringing the
surplus up to S5Sl7 800.
There was not much change this
week in conditions bearing upon actual
values Of securities, but number OF
developments in technical conditions
combined 10 cause an awakened Spscu-
lative demand for stocks and an ad-
vance in prices. Most important was
the appreciate relaxation in the pres
sure on the money market, which has
for some time deprived the speculative
element Of available resources with
which 10 operate. Great confidence has
been expressed for several weeks that
the new currency bin was to result in
easy money, but the prospect of easy
money is more difficult for Wall street
discount than other favorable factors,
because the actual relaxation Of money
must be awaited to supply funds for
speculation.
As a matter Of fact, the present re
taxation Of the money market is not
due to additional supplies of bank notes
issued under the new law, but rather
to a general changing of plans by ma
ti0nal banks with regard to taking out
additional circulation. For nearly two
months there was large demand for
loans on the New York banks for the
purpose Of buying government bonds
The price of governments had been so
much increased as a consequence that
@ liquidation Of holdings offered much
larger profits than the taking cut Of
circulation. There have been large
sales Of government bonds in cense-
uusnce with the intention Of Offering
plans for taking our additional circula-
ton until bonds could be bought in at
lower prices The refunding Is. when
issued, were quoted at one time on the
stock exchange at 1861 bid and on
Wednesday Of this week they sold at
To- Other government bonds declined
in proportion. but have been steadier
Tor the laCer part OF the week.
This movement 10 take profits in
governments has released large
amounts Of loanable funds to the
money market. The liquidation of
loans lied up by the purchase Of gov
eminent bonds doubtless accounts for
the frmness Of New York exchange at
interior points. earlier in the week, the
rate at Chicago having advanced at
one time 10 25 cents premium per thou
SAM The absorption Of cash BY the
New York sub treasury has materially
relaxed owing 60 the large government
payments on account OF pensions and
payment Of premiums on converted
bonds. The Withdrawal Of funds by
the government, nevertheless, cOntin-
uas large.
Early in the week the unexpected an
nounCement 81 the acquisition of Third
avenue by the Metropolitan Street
Railway disclosed that the amount of
short sales of Third avenue stock was
greater than the TOTAL amount procur-
abe IN the market. The squeeze Of
Tire shorts in this stOCy frightened the
the shorts in this stock frightened the
r. ntic demand TO cover shorts in all
the New York public utilities. in which
bear campaign had been in fun
swing. Other industials and special
ties responded in sympathy.
mis- is a maxim with professional
stock operators, that prices of stocks
must advance before the general pub
Ec viii manifest any interest or come
IN and buy. The squeeze of the shorts
IN the specialties and the resrIrino
sharp advance in prices seemed to give
the necessary filing 10 the market and
outside buying through cOrnmiSsio1
EouSgS largely increased as the week
progressed. Speculation IN stocks kent
NE demand for money we'll abreast Of
we ADDITIONAL supply and rates were
thus we'll maintained The large de-
manj for stocks for London was q faa-
tIre If the weeks trading. The moro
sctiTe speculation there as here. is d11s
70 easier money. following the release
O funds tied up in the new govern
IIsht loan, which has been allotted. 1t
: an interesting coincidence that ibe
london money market has been be1a
FFyJed by an extension Of the Bank of
tLnsland's note issue of S4.S75. On0 in the
..--lloidry department, the first in sew
enty years.
mis- issue is based on the privilege
feooraed the bank OF .ssui1g notes to
irT-,o mount OF two-tnrds Of the lapsed
a-e of private banks While the Va
iD9S technical developments were Inc
mediate causes Of the upward move