The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-08-03
BEARS HAVE
HAD CONTROL
Rush to Take Profits Caused
StagnatiOn of Prices.
RAILROAD DEVELOPMENTS
LITTLE DOING IN WALL STREET
YESTERDAY.
.AD DEVELOPMENTS


only a few professional room traders
had anything to do with the market
The corporations did not carry prices
FAR away from last nights level at any
time
-he holiday in London left the mar
,st without any orders from that
source and emphasized the dizziness.
The days net changes are slightly
mixed. but the closing tone was heavy.
The bank statement failed to conform
to expectations. but its publication did
rot affect the market to any apprecia-
bic extent
Today's money and exchange mar
kptg were nominal The fact that the
next available steamship for shipping
gold to Paris does not sail until next
Thursday defers the question of fur
ther gold exports.
The only features in today's market
worth specifying were advances in the
local fractions, with subsequent reac-
lions. a loss OF over points in st.
Louis & san Francisco and a buoyant
recovery in the Central of Georgia in
come bonds.
This week has been a check to the
growing disposition TO buy stocks.
which was carrying prices upward
throughout the list.
Various factors have interviewed
which might serve as an explanation
Of this check, but the selling seems
10 have been due entirely to a desire
10 take speculative profits.
Commitments on the long side had
been considerable as a result of a long
continued rise and the process of pro-
ft-taking has necessitated a consider
able absorption.
In some stocks the selling out of the
effective leaders in the operations for
the advance has been rather obvious
In others appearances have suggested
that the principal operators for the ad-
vance have helped the reaction with a
view TO shaking out weak and cum
bersome followers with a view to facili-
tate other advances and take on fresh
holdings of stock at the decline.
Such movements are incidents of all
professional bull operations. The mar
ket has not yielded to acute weakness
at any time. and there have been sus-
tanning points of strength at all times
in the form of advances in special
stocks due to individual causes, real
or supposed.
strong undertone is indicated by
the fact that as prices receded the ac-
tivity Of the market has diminished
showing that holders have withheld Of
ferings Of stocks at the lower price
levels.
Last Saturdays bank statement was
a predisposing cause for the taking of
profits at the opening of the week.
The large loan expansion was a warn
ing that the prevailing speculation was
making large inroads upon available
credits, while the feeling in the finan-
cial community is that bank reserves
NJ in
preparation for coming large demands
for interior requirements.
The large exports of gold announced
for Tuesday followed by additional
shipments for Thursday, emphasized
this impression.
The continued firmness Of the foreign
exchange market after the shipments
Indicated that further out-go was with
in the probabilities.
Under ordinary circumstances a re-
taxation of foreign money markets
might be looked for after the month
end requirements are met: but at the
present time the London market is con-
fronted with payment of a 20 per
cent installment on the $16O. 900 900 con-
sol issue, while in Paris the Bank OF
France is making preparations for the
Tentes conversion plan, which will ne
cessitate a temporary tie-up of a large
'Nl4i VI AiifAltN ~ ClldDlt the eON
10 stand ready to redeem any such
portion Of issues as holders elect TO
exchange.
The present large Indebtedness of the
New York money market to foreign
markets is now we'll understood, and
lhe government financial measures re-
ferred 10 are believed 10 explain the in
disposition of foreign creditors to ex-
Tend loans here. Notwithstanding the
ADVANTAGE I,x~ HI oan inf
rates. The latter part of the month
mas also altered the expectations of re-
Hef 10 the local money market by a
continuing government deficit.
An unexpected development during
tne week was the reported absorption
Oy me 81. Louis x San Francisco of
the Chicago & Eastern Illinois, thus
Ihsuring an entrance into Chicago for
mat system
The recent large absorption of st.
LOUIS & San Francisco was supposed to
Ioreshadow its incorporation into the
,'oth island system, and its strength
mas helped the advance in Rock Island
on account of readjustment of its cap
ia Chicago & Eastern Illinois had
Deen marked out for transfer to some
other large system, but it was expected
10 go 10 Illinois Central.
reports are now published that the
louisville & Nashville was also bid
uer Tor the property. The fact is dis
.losed that competitions and rivalries
nave been involved, rather than prog
leSs towards adjustment of a commu-
MY Of interest TO insure permanent
peace and cooperation in the railroad
World such as WIS but recently ac-
'sptsd as the ideal towards which the
.loT's Of the financial powers were
In the eastern trunk line territory
also the progress of the plans for the
Nouia systems outlet to the Atlantic
N watched with some solicttude as TO
NE harmonious adjustment of the new
relations thus created.
The Rock Island readjustment plan
10" definitely promulgated has been
me subject Of great interest and con-
noting views.
The prevailing tendency of capital
S'hf ersious towards exchange int
l.'tclosure issues on a highly expand
"a basis of valuation is viewed with
CONSIDERABLE disquiet in the financial
World and the addition of subsequent
s'orN issues gives rise To COnjectures
as 10 the possible status of such So
,urties in the probable periods of de
preston which may occur in the future
dS IN the past.
Ihere is some questioning heard as
% the good ground for the expansions
~ valuation which are witnessed as a
result of simple readjustment Of cap
;,s' issues on property which is itself
-'it unaltered in its volume of earning
power
Some Of the reports of net earnings
~. railroads for lima are NOT entirely