The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-01-27
STOCKS IN THE EAST
Favorable Bank Statement Pats
Life into Market.
TRADING PROFESSIONAL
PUBLIC HAS NOT BEEN PROM
NENT DURING WEEK.

New York, Jan. 26.-The stock mar
ket manifested only a languid diSposi-
ton to respond TO the very active and
bold manipulation to which it was sub
Jected today, until the appearance OF
the bank statement Immediately
upon The appearance of the statement
on the tape the market became ami
mated anu the dealings brOadened out
considerably. Nevertheless the mar
-ket remained spOtty to the close. and
although there Weresa large number Of
stocks which show advances 90 one to
two points, many parts Of Inc list
relied to respond tC the ad-
vance at all st. Paul was the 'ea -ure
all day. The stock was exceedingly fe-
Verish and unsteady at times. but it
was W3vanced with determination and
made the last price at the top. six
points above last night The dealings
were on a very barge scale. The pre-
ferred stock gained % The Kansas
and Texas stocks continued to hold a
conspicuous place in the market, and
the preferred rose IS in the early deaf
ings, but suffered later from profit
taking. Rock Island rose 25s, and the
grangers and Northern Pacific were all
strong.
The bank statement disclosed a fair
ly plethOric condition of the money
market, and the very liberal expansion
of loans by the banks of over 100000
has not suC:ced TO keep pace with the
rapid congestion OF reserves
Amount Of Specie Large.
A notable feature of the cash in
crease is the overwhelming preponder-
anCe of specie in the receipts The
weeks increase Of 81, 057. 400 brings the
specie holdings Of the New York banks
up 30 S191. 40, 200 which compares with
the maximum record of S206, Sl6.500 on
May q 1899. The sub-treasury Fay
ments are now being made almost
wholly in gold, including the large
current redemptions of national bank
notes and the mail and express re
ceipts from the interior by the banks
include a large number of gold CeTtifi-
Gates Of large denomination. The
banks also have received payment
from the sUb-treaSuTy on account of
Sl,OOO,O0O receipts of gold in San Fran
cisco. Yesterdays steamer from Aus
tralia brought another 1852 Oe0 in gold
to san Francisco, which VIII figure in
New York bank reserves eventually.
Tt is worthy of notice that ali of the
$4,000, COO gold exported this week also
came from the government assay Of
flee
The speculative contingent in the
stock market evidently looks to this
redundancy of lOanable resources to
stimulate speculative buying of stocks
1t is also certain to stimulate the gold
export movement. With a further rise
today in the quoted rates for sterling
exchange in the nominal Saturday
market, with advances in the. cali
money rate in London. and with ster-
ling hardening It Paris, il is not I'M
likely that the coming week viii see
gold go to London instead of to Paris.
The TemittanCes abroad in payment Of
returning securities continue on large
scale and keep up the exchange rate.
Weeks Market Professional.
The action of the stock market this
week has been strictly in accord with
what might be expected from the ad-
Justment of accounts after prolonged
period of active speculation. As spec
ulatiVe buying Invariably carries prices
above a normal, so that the realizing
of profits necessitates q downward
reaction, so speculative selling carries
prices below the normal. with a neces-
saTy upward reaction when the bears
take their profits by buying stocks 90
cover their short con traits. The. lat
ter is what -ccurred in the early par
of the week and the upward rebound
was aggravated by the fact that a
combination OF the more alert profess
sional operators turned from the bear
10 the bull side of the market and COM
henced oStenJaIIOuSly buying stocks
and bidding up prices, while at the
same time putting out various intima-
tons and TUmOTs to account for the adj
vance, some Of them with enough show
Of probability 10 attract an outside de-
the market made 1t pretty clear that
the principal demand of the early part
of the week came from the OVereXtpnd-
ed short interest. This was particularly
true of Missouri Pacific. The demand
for this stock was urgent when rumOTs
were circulated that j. was to be the
central feature in a vast scheme of con-
sOlidatiOu of southwestern railroad
properties. The premium paid for the
use of the stock for -deliySry indicated
large short interest and there seemed
TO be practical corner in the stock 4
Reports were revived that the.St. Paul
Northern PaClhc-ETeaJ Western deal
was on foot again and the Inference /
was encouraged that the threatened
rupture among she great steel cOmbfna-
uonS was about to be patched up To
the mutual benefit OF all parties Some +
of last weeks selling had been ON the
SuppoSltlOn that the death of Queen I
Victoria would have a depressing in
Huence on the worlds securities mar
kets and when the quiet steadiness of /
prices in foreign markets after that 1
event became manifest there was some f
buying to cover shorts as conse- /
quence- The early upward movement I
was followed by a reaction on Droff /
taking and again by a secondary re- /
bound.
Bank Notes Coming In.
The speculative world is beginning 20 /
canvass the future again in the convic- Z
ton that the Influences of the past have
lost their force The fate of the coun- /
try S crop for the coming year must
again be reckoned with. The condition
OF the iron trade is eagerly scrutinize6 /
with opinion much unsettled and CON
hicting as TO its future. Growing inn
pOrtance is attached TO the coming fest
or the new future of the bank chr
rency law. The treasury is called uuon
70 redeem more national bank notes
from day to day than at any time since
the new law went into effect last year
This VIII soon test the ability of fha
banks 10 keep their notes in circulation
As they do not figure in the money re-
serves required By law CT national
banks, the tendency viii be to redeem
ana retire them unless they can be
Kept IN circulation Ire legal Iimita-
uon upon the retirement to s. 600 000
per month still remains in force. Tho
current redemption Of bank notes s+
the subtreasury is an important item i'm
Ile large gains each week by the New /
oIk banks on subtreasUrE operations
ana IN the current use Of the New York
money market The export of gold is
JHtS IaCl = ted even when the con- I
sJdnt disbursement on government ar- /
counts keep the London market e4sy [
IN spite OF mdneuvreS of the Bank of /
England TO keep up the open market
rate for money.
The bond market has been relatively
more active than that for stocks ana
prices nave been better maintained.
Bonds of the principal SOUTHWEST,
railways have been in large demand
and SHOW striking gains