The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1900-06-10

E'et5C 4NCAtAlGI II TIE foreign selling IN
suIIiclent volume to account for the
weakness. The news of the day, while in
Ginning towards depression, is of about
the same character as for some time past
Wnsle the market has been sluggishly in
different.
Fear a Hidden Factor.
Spectators are therefore inclined to
tear that some unfavorabie factor not yet
known 10 the public is influencing liqui-
udllOn me money market outlook be-
YONG the immediate future, is not alto
Sether satisfactory. The weeks addition
Al loan expansion of S6.4S4, 900 must clearly
De attributed 10 renewed t0reign demand
upon our credits. Estimates of the future
ease Oh the local money market have been
predlcted upon cessation of this foreign
demand. The acuteneSS of the stress for
FUNDS IN Berlin seems to be the cause of
new demand If this loan extension to
foreign borrowers should continue into
the period when New York banks are
called upon to finance the crop movement
now not lar distant, a rapid dissolution Of
the surplus, which was reduced TODAY to
SlS,5i4,250, would necessarily result Yes
/ terdays additional call for S5,000,000 of
government deposits will be followed by
three other calls for the same amount,
thus taking up the whole of the S25. 00G 900
necessary TO redeem the government Is.
which are called for Aug. IS These bonds
are IN the names OF the banks, and are
on deposit as security for circulation. 1t
is optional with the banks when they
shall be presented for redemption.
Until they are redeemed, the calling of
government deposits from the banks will
market. .... .,
The market closed steady, on covering
movement by room shorts
Stocks Are Lower.
Prices of stocks are considerably lower
Tor the week. and the speculative blood
continues depressed and respondent over
the uncertainties in the outlook and the
lear OF decreased profits in business and
industry and resulting drain in values 1t
is TO be considered that if this fear was
packed by conviction, there would be IL
quotation IN force and active speculation
on the bear side. On the contrary liQui-
dalton has been restricted to inapprecia.
bic dribblings for the most part, and the
prevailing mood IS one of apathy The
changes for the week have been accom-
plshed on very small volume of bust
ness. Trading on the stock exchange has
approached the point of absolute stagna-
IN Holders seem content to hold for
the present, hoping for better things. even
with no present demand tor their stocks
/ me incidents of the week have been on
the side of depression and the natural re-
action from last weeks fictitious rise has
made in the same direction. The covering
or the short contracts, which was the real
cause OF that rise, left the market tech
nlcaily weaker. The reduction of the short
interests withdrew a prop from the mar
ket and the taking of long lines on the
advance brought pressure to take profits
in its train.
These causes accumulated the dominant
influences which were the acute stages
developed in the complications In China
and the growing fears of a failure of the
sprlng wheat crop in this country. The
market has shown itself sympathetic to
foreign stock markets throughout This
IS more especially due to the fact that
some support for. American securities was
looked for with relief attending the fail
OF Pretoria and the security of the Jo-
hanneSburg gold mines.
Contracted by China.
The new. development in China has eff
1ecJually cOunteracted this expected in
fluence and the expectations of easier
money conditions abroad have also been
disappointing. the Bank of England, by
! refralnlng again from reducing its min
lmum discount rate proclaimed to the Of
fetal world that il preferred to conserve
Its resources for some future contin-
gency.
The Berlin bOurse has been in a condi-
ton OF panic through the forced sale of
iron shares TO pay off loan obligations
American securities have received no sup
port in foreign markets. and the selling
Tor foreign account in New York, though
small, has been an effective element of
depression. The decentralization in foreign
markets has been due to the course of
prices IN this country, which promise eff
fectiVe competition for foreign iron manu-
factlrers in their own markets.
Deep Cut is Favored
The cut in iron prices announced here
mad little direct effect in securities, as it
| mas been discounted and is believed to be
a step toward attracting buying to meet
| the well known consumptive REQUIRE
mentS. No one expects buying orders will
/ be placed to meet this requirement until
IL Is demonstrated that the recession in
prices has been ended. For this reason a
plan mas found advocates in the iron
trade of a sharp general cut in the prices
10 Wen below the price of production i'm
order to effectuaIly. consume production
and work off accumulation. The conse-
QuenceS involved of throwing out of bust
ness weaker concerns, the reduced en-
ployment for labor and a corresponding
train of circumstances are not viewed
with equanamity III Wall street, even
while the desirability of a stable basis of
prices in the iron market is fully recog-
nized.
Dire Predictions as to Wheat.
The Importance as basis of prosperity
of stocks is brought sharply into prom
inence by the critical conditions existing
IN the spring wheat belt. Pessimists have
already given up. the northwest wheat
crop as a failure and point to the neces-
sary results in reduced buying power bv
the decline in railroad earnings and so on
through the complicated channels of
trade. These lamentable predictions have
not had great effect, as railroad earnings
are we'll maintained and the generally
conservative course which has been pur-
sued by the railroads of making necessary
OullayS curing the period OF prosperity
with a view to preparing the way to re-
renchments in a possible period of adj
Verslty afford a buttress to confidence in
the stocks Of these properties. The fall
ing off IN traffic of the railroads and the
disputes arising at various points over
competitive freight and passenger rates
nave nevertheless, weighed on the rail-
road list.
The placing Of Atchison preferred on a
. per cent dividend basis and the mainte-
nance OF the quarterly dividend on Sugar
at the ~ per cent rate only temporarily
strengthened these stocks.
The extensive reductions in the operat-
ing expenses Of the Atchison system for
the benefit of net earnings lessen the ef-
feet of the increased dividend While
the American Sugar Refining company is
admitted 10 be lying down in peace W,
Its competitors, only part of the com
tors are inside the sugar COMPANY
stead of all of them, as on previou
liar occasions. The stocks have the
been under pressure.
The continued reflux of money to ,
York, while offering means for d
speculation, discourageS it. because a *
an index of declining trade and bust
ness.
The bond market has been dull. but
prices have been remarkably steady. T.
5. IS declined =; old IS coupon, p: old As
registered. g. and refunding Is. when is
Changes in Bank Conditions.
New York, June 9-The Financier SAYS:
After three weeks expansion in surplus