The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-01-14
STOCKS IN The EAST
Buying Demand on Wall Street
ListleSs and Narrow.
THE BANK STATEMENT
FAVORABLE SHOWING MADE BY
THE INSTITUTIONS.
Market Has Suffered From Democrat
ization in Special Stocks in Addi-
ton to the Withdrawal of the In
duence Of Investment Buying
Decline In Money Rates.
THE BANK STATEMENT

advance IN the movement TO take pro-
tits after the appearance of the bank
statement This exhibit was in itself
q. favorable one as were all the ether
incidents 0f the day and it conformed
closely To the preliminary estimates on
which the buying had been based. The
selling 10 take profits was RESPONSE Bile
for the advance in prices and was,
p..cUuJTa sufficient 20 bring prices
back 10 about the starting point
The activity in Sugar certificates
continued the price rising an extreme
ihIae points against the shorts, whose
covering demand helped on the adj
vance. The bears quickly detected the
rea.izins after the bank statement and
forced sugar down 4& points. Brook
lyn Transit and Tobacco showed close
sympathy and some other sDecialties
I.st point or over. A decline of rs
iu Sew York Central showed some
special pressure against that stock
Otherwise gains had been fractional
ana the reaction did not exceed them.
There was some selling for London
account as prices rose above tne London
parity A fractional recovery liz Lon
don discount rates and jump 3 pfen-
uiugs in the sterling exchange rate at
Berlin were without explanation.
The bank statement fully accounts
for the increased disposition of New
York bankers to place time loans at
present rates and their Temperatures
ss buyers OF commercial paper The de-
cline in money rates is also bringing
renewed demand for railroad bonds
from some of the great insurance com
p3nies Some heavy individual trans
actions i'm bonds are recorded.
The central fact in the situation in
the stock market is that the buying de
mInd is listless and narrow and with
out stimulation by any favorable de-
velOpments in the immediate outlook.
Even the investment buying has al
most ceased. either because prices are
above an attractive level or because
the available funds from dividend or
interest Disbursements have found in
vesIment
Investment buying does not IN itself
serve 20 advance prices greatly, but
it has a large sentimental effect, as it
inSuTes tha constant dimmutiOn on the
floating supply of stocks, held merely
for an advance in price.
The market has suffered from the
Generalization IN special stocks. in ad-
diuOn To the withdrawal Of the in
huence of investment buying. There
has been besides selling for London
account which was only discontinued
when the reduction in the discount
rates in the banks of England, France
and Germany gave confidence in the
reality of the relaxation in money
rates
The volume of foreign selling was
not large and would have been easily
absorbed in an ordinary movement for
an advance, but as the foreign selling
grew out cf the needs of the London
money market and served to increase
the pressure for gold i'm New York there
was no disposition to hold up prices
90 afford a market for London sellers
to make profits. Notwithstanding the
small demand for stocks the supply
was scarce and railroad stocks nave
responded quickly an week 10 any
sort Of speculative holdings of stocks
statements Of the New York clearing
house banks as well as those of the
great foreign banks. show that specu-
Iators the world over have been selling
their holdings, paying eff loans and
Withdrawing from the field. Many
commission houses and brokerage Of
fees in Wall street which found busy
occupation all of last year have ceased
20 invite custom. pending the develop
ment of new factors in the outlook
This ciosing out of accounts now
safely attained has involved some
heavy losses and no sman bitterness
of spirit. which is reflected in the dis
cusaGOn by brokers OF industrial COM
rlnauons and their tiOtations i'm a spirit
lar from complimentary This feeling
was deepened by the strong official liz
umari0u at the stockholders annval
meeting of the American sugar Re-
ing company, that the business was
not profitable in the present sense of
new competition, and that dividends
would probably be reduced or suspend
ed during the coming year. Profession
al operators thereupon fell tooth and
nal. upon the sugar certificates. as we'll
~ other industrial stocks. and sold,
them by the thousand shares.
The railroad list did not escape en~
.Ee-y- but was much less affected. The
iaW price of the dividend-paying in
JusuIals, bringing the rate of return in
s'm- cases up TO s per cent or over, re- /
ae-ts the rating Of the risk in holding
these stocks
The BEGINNING Of dividends on the
COMMON stocks of some of them has
I+'.tt .n elicit any advance in price
and -r. preferred stocks of some COM
ltlLUs have shown a tendency in such
tas1> OBJ decline, as having the safety
o- their dividends impaired. There is
an clement in Wall street who preach
t-s doctrine that the country has
i7den-a the crest of prosperity. They
y--e Ht evidence of this the marked
ammunition of the grain and cotton
movements compared with last year
"a- point 10 the comparatively small
harnesses in gross earrings of railroads.
While these show last years earnings
we. maintained last years prosperity
--- already been reflected in prices
+al higher prices depend on increased
prosperity rather than on the main
.-.lE.' uL the present level High
prices OF Cnmmou4ties are likely to
'aElH- the demand. Advances in rail- I
.at ra-as. now being enforced. lead
.a-l- off I'm the volume of traffic F.,
increase. cost Of material makes en-
..-.1a.aJ ou net earnings by enhanc-
- -le cost of OperPt.an.
He.l are some of - reasons as
S.7--i bog capitalists ana operators in
-.t-.- for their dissemination 20
-- money into stocks al present. They
"e- 81. await developments. The
a-a COST of operating is partiCu-
...-- noticeable i'm the case of some of
... ---l-Triced railroad stocks which
..e--ai1ed their dividends through
.-- t1.-al of depression by economy of
.-...us- on the other hand. some
ID. railroads which have passed
....l-H bankruptcy and reOrganiZing
. the effect Of the large outlay Of
-- acquired I'm reorganization Tor
ti-..aIec- heJterments and improved
..-iHa1t during the period OF low
..-- Tor material i'm present reduc-
.. 't operating expenses to the adj
'--.,as1 of net earnings
t.g market for bonds has been
SNAIL. but prices were we'll MAIN
s1.a-A United States new IS registered
-7-..avd g and United States new As.
Upon. SIS. old ga and IS. L In the bid
Bond Quotations.
IS ree-----l02l5 r. *. & T. ends. esb
T. Is reg-----llg-s H. X K z. 4s... 81
/ = Is e9up-..I0 n. y. G. Ists....I09
T. t.e" IS reg.l35s \. j. C. gen. 5s.llSi, /