The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-05-19
BANK STATEMENT
AFFECTS MARKET
Stock Exchange Made Show of
Weakness Yesterday,
HEAYYEXPORTS OF GOLD
FAILURE OF INTERIOR RECEIPTS
THREATENS MONEY SCARCITY.

New York, May 18.-The promise of
renewed strength in stocks held out
hy yesterdays market was not fully
realized today. although the substantial
early gains were not an wiped out by
the late reactiOuay tendency. due prin-
cipally to the bank statement. Just at
the close there was an abrupt marking
up Of few stocks a. top prices. appar-
emily by manipulation. which Iessened
Hhe appearance of weakness.
The disappointing feature OF the bank
statement was the decrease in the cash
reserves. The preliminary estimates OF
the interior currency movement indi-
Gated that receipts had been so heavy
as TO Offset the outgO by gold export
and sub-tressury requirements, and
bring the net gain iu cash by the banks
70 &6,O00,6OO or upwards. The statement
SHOWS q decline, on the contrary. Of
%,Z53,600- The discrepancy is surpris-
ing, but the fact is obvious that the re-
taxation IN the local money rate has
lessened ne attraction here. which was
drawing mons from the interior dur
ing the -strinEency of last week and
early this week, just as it has allowed
sold TO go to Europe. The heavy stock
market liquidation is shown ir the S2f-
t94,800 of reDaYments Of bank loans. II
Is clear that the money market is again
a factor to be considered i'm the stock
AAhAt HANAf VIII ANEEnULo vi cur IEAlL1 AEOll
the interior arrested and gold going out
80 Europe.
The effect Of realizing was quickly
manifest this morning in Eocks which
mad been strongest yesterday. AtChi-
son forged Upward 10 Che leadership Of
the market. and closed with a net gain
ct 3Ss. There 4as no news to explain
the rise. Other strong features were
the local gas stocks Baltimore & Ohio,
Lackawanna, Rock Island, Illinois Cn-
tral, the Chicago & Alton stocks, Pitts
burg, Cincinnati, Chicago & St. Louis;
Northern Pacific. Great Northern, the
Fries, the Southern railway stocks,
Wheeling & Lake Erie first preferred.
international Power, the National Lead
stocks, Manhattan and a number of
minor industrials n s~paciafties. Last
prices were decidedly below the best in
most cases. The decrease in loans was
the largest for n week in the history
Of the clearing house.
The stock market has shown the in
evttable arter-eHeCtS of last weeks n
vulsiOn during the whole of tFss week,
in spite of opinions voiced by the less
rational of the speculative element that
the panic was only a sort Of emotional
insanity. without real cause in actual
conditions, and that. therefore, the
stock market was likely to come
promptly 70 its ~previous state. The
various violent rebounds which have
occurred from the lower level of prices
have been cited TO strengthen these
hArihA g. bAE hAl4tAAL ANGLQdAAlll1 OL NAAt
kind witnessed this week are phe-
nOmena always Witnessed in the market
Immediately following q sudden COM
motion. The movement of prices is eN-|
actly analogous to that of the waves II
"a pool. where a sudden withdrawal o.
"a huge displacinE body forces a violent
recession. followed by an almost equaliy
violent rise. and then lesseung Csctlla-
tions.
Those who can possibly command
means or credit TO hold stocks will
make almost any sacrifice to prevent
selling of property on which they have
amy claim in such a market as that OF
Thursday of last week. Those who are
forced TO sell are throwing over hold
ings and making prices at which many
buyers would be glad to take them if
ahey were at hand 20 do so. The ma
c1inery Of supply and demand is, for
the time, out OF joint and men may be
selling stocks 10 n part Of an excited
crowd many points below What is being
paid FOR it. a few feet distant, while
there are other buyers who are unable
to get buying orders executed, IN spite
ofthei~ utmost eagerness.
That this was largely true last week
As shown by the numbet Of acrimonious
disputes which haze occurred this week
concerning sold out accounts and need
less sacrifices made in the panic The
violent rebound in prices WhIC follows
the first check 90 b panic or selling
SIS thus understood. but when the re-
a0LETA mas UEEL. NAAd4E LAAEAE - aAHnN - aI
residue Of impaired accounts Wnicn
must be ~iduidated. Many stock eE-.
change houses rave admitted THAI the
low level of prices last week mad not
only wiped out their customers claims
uDon them. fut would AVE yielded only
insolvency for themselves had they
Uqu3dated. They simply refused to sell
audtawaiIed the quick rebound. Then
they took advantage Of this to sell
1T was belated liquidation OF This
ahanaaHaa which nnHTEan tho violent re-
IapseS of Tuesday and "Wednesday of
this week. whiCE reached fairly seusa-
tional proportions. With the compile
ton OF the most urgent Of this belated
forced liquidation this forced recovery
again. The fortuightly settlement on
the London stock exchange cora
pliCating factor. as that market was
heavily committed in Americans and
was short Of Northern Pacific as the
market had been, but the time offered
for preparation enabled London to
meet the crisis and avert the panic
which Wa [S2red.
with the progress mad towards nor
nal conditions in the stock market.
actual conditions of general business
and OF Individual properties have re-
asserted their inth,ence to some extent.
h conviction is general that the en-
Filtered controversy over the controlsof
Northern Pacific has been adjusted.
No authentic information can be had
or the terms of the settlement, but
fnEre IS eNlQence mat the contestants
for ControI of Northern Pacific have
been insured against harm from the
operations Of the Burlington deal, and
that project has proceeded towards
Consummation. There is an element ia
the speculation which argues that as
this controversy was the root OF abe
troubles which pUtcipitated the panic.
its adjustment should leave the way
open TO Il direct return to the boom
prices for stocks.
The ANTIQUITIES encountered by
HuHpty DumDty in getting himself put
together again formed an illustrative
precedent for this case. This yulner-
ability OF the market to the shock of
the Northern Pacific episode revealed
the fictitious character of much of the
buying which produced the boom
price Buyers on margin had stretched
their credit to secure title to the
stocks which they had no means to buy
outright and fcr which there was no
demand from those who could. The
heavy losses suffered by these sDeC1l-
lators is a deterrent to a resumption
Of buying, even by those who have
means remaining. Othsr deterents are
b largely increased margins demand
90 by commission brokers for the Dur-
chase af stocks and the additional eau
lion shown by the banks ir making
loans