The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-10-06
BUSINESS AND
FINANCIAL NEWS
Pressure Upon New York Ex.
change Relaxed Yesterday.
STATE OF MONEY MARKET
CAUSE OF IRREGULARITY ON
WALL STREET DURING WEEK.

London today accentuated the duIlness
here and tended TO relax the selling
pressure as London has yeen a con-
slant seller IN this market Of late. The
fact that there is no loan market at the
stock exchange on Saturday also tend
ed to relax the pressure upon the mar
ket. Perception is growing of the fact
that the question Of the effect of the
interior demand for money on the stock
market has passed the stage OF argu-
ment and has resolved itself into
question Of how much further stock
market liqui fdtiOn may have to eX-
tend. While there has been no strin-
genoy Of money during the week, this
has been due to the fact that in re-
ducing their outstanding loans bankers
have been discriminating against in
dustrial collateral rather than mark
ing up the ruling rates for call loans.
Owing to the continued firmness of
sterling exchange, IN SPITE of a larger
supply of cotton bills this week. relief
by gold imports does not appear inn
minent Demand continues from bank
ers short of exchange and experts in
that market declare that large short
interest remains to be covered during
November. 1t is said that some fresh
sterling loans have been negotiated this
week. The loan increase in the bank
statement revealed that other forces
are still at work in the credit market
which offset the stock market liquida-
tiUn. ais and the renewed pressure
against Amalgamated Copper depressed
the whole market
There has been some irregularity in
the stock market from time to time
during the week and dealings have been
on smell scale. The course of prices
in the main has been downward and
the weakness increased during the lat
ter part of the week. The support of
1r-lrea at L 7flfa
was a feature during the cris.~ fol-
lowing the assassination of President
Mckinley and which IVES attributed to
the joint efforts of the great banking
and financial powers Of the country,
has been conSDicuously lacking. The
liquidation has not been heavy nor
apparently urgent but very light de-
mand was forthcoming at the declines
and there seemed to be a general agree
ment of sentiment in the street that a
reactOnary movement was due and
need not be contested.
This is an acquiescence in the normal
course of prices of securities at this
time Of the year when the largest de-
mands are annually made upon the
money markets for fall trade, the NOV
ing of the crops and the period of wait
ing for the situation to shape itself
concerning the outlook for the coming
year. The artificial support which was
considered necessary when the shock
or the president ASSASSINATION naQ 10
be met. in order to prevent demOraliza-
ton and panic, is no longer considered
necessary. The opportunity having
been given for Que consideration and
preparation to meet the ultimate eff
fects Of that event, the market has
been left to the natural play of forces.
So far as the general outlook is con-
cerned. confidence has been maintained.
Trade returns are encOurs ging in prac-
tically all branches Bank clearings
the country over continue ct a record
figure. Railroad earnings are still at a
higher level than last year. though the
tito of increase Is running somewhat
less than for earlier weeks and months
for some time past.
A feature IF many of the railroad re-
ports coming to hand both for trans
continental and trunk lines, is the fact
that increases in net earnings are
achieved on a somewhat lessened vol
ume Of actual tonnage moved. This is
a practical demonstrst ton Of the
healthy effect Of the maintenance OF
freight rates and reflects the prosr' IS
made in the community of interest as
a factor IN suppressing the rate cutting
which has made such serious inrOads
upon railroad earnings in times past.
on the other hand the reduction in
tn D freight movement is not an entire
ly reassuring fact. In part this COndi-
ton IS due 20 the higher grade of much
of tn freight which is moved and
which is a natural consequence Of the
prosperous conditions Of the country
The eastward movement Of agricultural
products shows a falling OF partly
owing TO the shortage of the corn crop
and the holding back of cotton. But
the Westward movement of merChan-
disc. whose classification - under
higher freight rates. has continued at
an Unprecedented volume.
While TIs condition has served TO
sustain railroad earnings. it is OBJ
Viously not self-perpetuating condi-
ton. as - is in effect due to the en-
Joyment Of past prosperity. Conditions
in the steel trade are very encourag-
ing. following the settlement OF the
labor troubles. The regular dividend
OF the steel corpora ton declared last
week. is an indication OF the healthy
condition in the trade.
The withdrawal of artificial support
from the stock market revealed some
disturbing conditions as to the status
OF many stocks which had been mostly
subjected to manipulation. Some OF
the minor railroad stocks which had
been subjected to operations by specu-
lative pools suffered wide relapses, but
the most striking effects We're shown in
the long list of industrials. Attempts
10 market some small. amounts OF these
stocks resulted in a collapse of their
prices into fragments.
Several factors combined to awaken
the latent diStruSt with which these
securities are habitually regarded and
and which is reflected in the low price.
80 which they sell compared with the
rate OF dividend return. The nomina
cause was the declared constitutionalitS
Of an antitrust law of New York state
which emphasized growing dread Of
attack by federal legislation.
the collapse Of the stock of Amalga-
mated Copper earlier in the month ha:
caused increaeing attention to the iacl
OF pubic Information regarding con.
ditiOns Of other industrial corporations
The action Of the United states Stee
corporation in public statement OF
monthly net earnings opened up the
necessity Of other corporations follow
ing SUI. Yearly reports of some OF the
mino- ompanies recently have showI
deci In net earnings and resort Il
the lrplus to maintain dividends.
whole question Of over-capitali
cation and ability TO continue dividend
in any but the most prosperous time,
have received renewed attention and
PARALLELS are drawn with the exper:
ences Of railroad corporations under t1'
earlier financial methods OF the countr.
and the bankruptcies and reorganiza
tons in reaching sound conditions o
organization.
Money market condi ions have con
tinued favorable. but the termination o
the interior demand for currency Il
awaited 70 insure further conditions