The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1901-11-03
BUSINESS AND
FINANCIAL NEWS
Stocks Were irregular on the
New York Exchange.
RALLY OF UNION PACIFIC
PRICES DRIFTED UNCERTAINTY
DURING THE PAST WEEK.

weekly bank statement. Very large
orders were placed in various stocks
to effect the rally. The selling after
the bank statement had been consid-
cred and the earlier gains had been
preety well wiped out. Union Pacific
was most prominent in the rally, and
was marked up to 1891 through many
offerings of sevarai thousand sharei
blocks each. The southern railway
stocks, Baltimore & Ohio, Amalgamat
ed Copper and United States Steel pre-
ferred also rallied strongly, the last
named rising a point over last night.
St. Paul was notably heavy, and rail-
lied but feebly. dropping back to the
lowest Of the day just at the close.
The general movement was narrow,
but some less important stocks moved
widely. People Gas was sharply de-
pressed. There was strength in Illinois
Central and the st. Louis and San
Francisco stocks.
1t was hoped that the gold exports,
coming late in the week. would not
figure for the full amount IL the bank
statement under the average system.
But the cash decreased proved to be
$500, 900 in excess Of the estimates. But
the loan item showed the process Of
loan expansion by the banks to be still
heavy in force.
The London money market showed
relief by reimbursement Of November
davsdepds and sterling at Paris re-
covered a fraction. Further gold ex-
ports from New York next week are
counted as a practical certainty. The
strong rally in Union Pacific at the
close was accompanied by rumOrs that
-4e ~ ~
ern Pacific settlement was a POSSIBLE
ity before trading was resumed on)
Monday.
Prices Of stocks have drifted uncer-
tainly during the whole Of the past
week. with no consistent movement
at any time. The conflicting eddies in
the pool of speculation have been due
TO movements Of individual stocks I'M
der the influence Of special causes. The
prevailing impression among market
observers has been one of duIlness near
to the record low level.
For the first time this year the
weekly transactions in stocks have
fallen below the aggregate transactions
for the corresponding period of last
year, during one Of the weeks of Oc-
tober, yet a survey Of the transactions
OF the whole month reveals an aggre-
gate of 14,023, 147, compared with a to-
tai Of 10, 900,9S5 for October of last year,
which was, in turn, the largest aggre-
gate of transactions for any October
in the previous ten years.
Sales of bonds for October Just ended
amounted to a par value Of S64, 954, 500,
compared with $42, 297, 500 in October
of last year, and $59,747, $50 in October
Of 1898. 1t viii be seen, therefore, that
the sensation of dullness is due to the
contrast with the furious activity OF
the speculative furore of the earlier
part Of the year. when the daily trans
actions ran from 100000 to 5000, 900
shares a day for many successive days.
1t is true however, that speculative
operations have fallen to a low ebb, and
are left almost wholly in the hands Of
professional operations.
The multiplication of securities listed
and dealt in by their expanded share
issues counts for the maintenance Of
the amount of business in the stock
market above any previous record for
the corresponding time Of the year
The result Of Withdrawals of banking
deposits from active circulation in the
course Of crop movement makes this
normally period Of dullneSs in specu-
latiOn. The fostering cause of specu-
lative activity is the accumulation Of
idle reserves in the banks, which are
employed by the average Spectator in
the form Of loans on call.
1t is found to be the invariabIe rule
that demand for money for mercan-
tile and industrial purposes works 2.
contraction of the supply available for
speculative purposes on call, no matter
what the ruling interest rate for call
loans may amount to. Thus, in De-
cember, 1899, whe nthe war in the
Transvaal' broke out, demand for call
loans for speculative commitments on
the stock exchange ran the rate I'D to
lS6 per cent per annum, and precipI-
tated severe panic, but did not check
the outgO of gold to London. SpecuIa-
ton is, therefore, naturally timid in
times Of strong currents in the shift
ings Of money supplies.
Opinions continue to vary as to what
will be the ultimate direction of values
when speculation issues from its pres
ent dormant and hesitating condition.
The aggregate requirements of foreign
money market until the turn of the
year are still underlined and the events
Of the week point to the likelihood that
the New York money market will be
called upon to meet those requirements.
The beginning of gold exports in Paris
and the advance in the Bank of Eng
lands discount rate point clearly 20
that conclusion. The ability of foreign
markets to command gold from New
York in face Of the heavy trade bal
ance in our favor for many months is
now seen to be due to the enormous
vat =
ties to domestic holders and large Dor
rowings by home capitalists ana syn
otcates during the struggle for control
Of the Northern Pacific and the organ
ization Of the United States Steel cor
pOratiOn
The prolongation Of the Boer war
keeps Europe shut If from its Gus
tomary source Of gold supply, while
the continued production in this cOun-
try makes it the most available source
OF supply Industrial depression in
Germany and in Russia have involved
heavy losses, French capital having
been heavily committed in Russia. This
IS held to account for the calling home
of Fl, neh capital.
There have been suggestions also
that foreign capitalists have not en-
tirely approved of the uses TO which
their money was put by the borrowing
capitalists and syndicates here. The
depression abroad is already reflected
in a degree in the decline in our ex
ports and in the increased competition
for surplus products and lower prices.
and the question arises how much fur
Their this tendency may go.
Attention has been attracted this
week by reports of retirements from
business of wheat exporters on account
OF disappointing foreign demand and
eollarsed ship carrying rates, so that
speculative contracts both in wheat
and ocean freights have involved
losses.