The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-12-21
MAN
IN WHITE HOUSE
Wall Street SUperstitious Re-
garding Dec. II.
DATES SEVEN YEARS BACK
OR WHEN CLEVELAND PULLED
BRITISH LIONS TAIL.
DATES SEVEN YEARS BACK


conditions of last week during the
period of forced liquidation The an
nouncement was made on Monday of
the formation of bankers protec-
tive pool" the subscriptions to which
amounted to $50,0G0, 900. This sum was
TO be placed at the disposal of Presi-
dent Baker of the First National bank,
President Stillman of the National City
bank and ]. P. Morgan, as a commit
tee and to be liable for loans on call in
case of an emergency in the money
market The liquidation in the money
market was Immediately checked and
some recovery enSued. The effect OF
this measure was in some doubt for
two days following, but it was ulti-
mately the cause of restoring a large
degree of confidence. Supplemented
by other favorable factors, the result
was to remove the general feeling of
depression and to induce a rapid re-
covery in the stock market
Not a Loan Made.
This ensued without dollar of the
$50 600 900 fund being drawn upon. The
knowledge of the existence of this re-
serve fund was a contingency which
served to induce freer offerings of
funds from other sources and to unlock
some resources that had been jealousy
guarded either from timidity or from
a desire to take advantage of higher
rates which were quite generally eX-
pected to rule before the end of the
year. Rates for money have steadily
declined during the week, six months
loans being shaded to below 6 per cent,
and the premium on loans for shorter
periods has disappeared.
Upon the first announcement of the
formation of this bankers pool there
ter Significance to it as a symptom OF
a more serious state of affairs in New
York than had been generally expect
ed. The measure does not differ in any
kind or degree from those adopted at
previous times of crises, except that
heretofore these measures were in the
hands of the clearing house authori-
ties, while in the present instance the
management is confined to private
hands. Inquiries poured into New
York from all quarters as the call for
such important provisions These
seem to have met with satisfactory
response, and a feeling of confidence
that the years end requirements would
be met without trouble.
Currency Receipts Large.
Beside the strong sentimental effect
of the protective pool the actual de-
velopments of the week tended to
strengthen the conditions of the banks.
Receipts of currency were large from
the interior and the drain by the sub
treasury was much relaxed. Part of
the government requirements seem TO
have been drawn from other ceuters
and large pension payments at New
York have relieved the banks. One of
the most reassuring factors in the
money situation has been the cOntin-
ued softness of the foreign exchange
market, Notwithstanding the easy tone
of the local money market. This has
been partly due to large supplies of
grain bills and it is hoped that the
sharp break in the corn market will re-
suit in increased takings for export
and an additional replenishment of the
exchange market 1t is manifest that
New York bankers have been able to
negotiate additional loans in foreign
markets as we'll as to obtain extensions
of maturing loans, which has been
difficult to do for some time past. Lon
don has been a moderate buyer of
stocks in the New York market, and
the proceeds of the sale abroad of the
SO, 900, 600 issue of Pennsylvania car
trust certificates have been available
In the exchange market A willingness
on the part Of. the foreigners to make
new investments in our securities,
which they have conspicuously re-
Trained from taking at the high level
Of prices recently prevailing was a
factor in providing means to settle the
somewhat overstrained foreign credits.
Wall Street Superstition.
An almost superstitious dread at
tached to the approach of Dec. II. the
seventh anniversary of the sO-called
Venezuelan panic, due to President
Cleveland's message to congress on the
boundary question. The passage of
the anniversary on Wednesday with
out trouble undoubtedly prompted buy
ing of stocks on the part of those
fears had been aroused. Very large
short lines were covered throughout
the week and this was a substantial
aid to the recovery, especially in some
speculative favoriteS where organized
pools have directed a campaign
against the shorts. Special factors
have also helped some stocks, such as
the absorption by the United States
Steel corporation of the Union Steel
company, the possible benefit to sugar
from the recent reciprocity treaty the
better conditions in the copper trade,
etc Many rumors of other develop
ments have also figured in the market.
The fact is not lost sight of that heavy
syndicate and other requirements re-
main to be met before the end of the
year, but feeling is much more conf
dent that the emergency has been ade-
quately provided for.
Bond Quotations.