The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-05-11
ARE READY FOR
THE BIC STRIKE
Operators Prefer to Have 1t
Come Now Rather Than Later.
1T STOPS ALL SPECULATION
--4
WAITING TO LEARN EFFECT OF
LABOR TROUBLES.
IT STOPS ALL SPECULATION

workers seemed TO XIII speculative in
ttrest in the stock market today. Prices
went lower in some cases, notably so,
tut the volume of the llQuidation was
trivial, and rather less in the coalers
than in some other departments of the
list There We're some large individual
| selling orders in Union Pacific, ST.
Paul and a number Of other prominent
stocks in which some parties have been
active recently. The Unexpectedly
poor showing by the banks had much
the same effect on stocks. causing
struggling declines on light selling. The
I opinion was heard that the anthracite
| operators prefer a strike at this time,
/ II one is inevitable, rather than to have
! II come in the fall. The strike is not
! taken very gravely even now, as is
I shown by the effect on the stocks of
/ the coal-carrying roads. The loss Of
! over 100000 in cash reserves, COM
/ Pared with estimates based on the
I known movements Of currency as re-
ported BY the banks themselves, Of
about $4,000, 600. IS rather vaguely attrib-
uted to local movements. The loan
| contraction Of $2.224.500 showed but a
! meager result of the stock market
1 liquidation. There is nothing to show
I how far the much discussed position of
/ the trust companies may have been al
| tered for the better by the weeks
events.
! The weeks stock market started off
Ia the throes of anxiety, caused by the
suspension of three stock exchange
/ houses and the outgrowth of the col
| lapse of the Webb Meyer group of Sc
I a Nh 60
/ vigorous process of manipulation and
! speculative buying on credit. The
! ssringency in the money market had
/ the inevitable effect of calling in loans
and inducing discrimination against
/ this class of collateral. With credits
curtailed, the manipulators found
/ themselves unable to support their
stocks, and the forced liquidation
] caused an utter collapse As the event
! proved. the general market stood up
remarkably well under the shocks with
/ the result that sentiment was greatly
/ reassured and confidence in the sound
ness of the position Of the market be-
| came more general than for some time
1 past. The episode has been called a
house cleaning" in Wall street. There
was widespread apprehension that
/ the condition Of affairs revealed by
| this episode and by the International
/ Power collapse might have an indefi-
! mite extension. To say nothing of the
1 many new securities which have re-
/ Gently been pushed forward into spec
Uiative activity and advancing prices,
4 there are many old established high
! grade stocks which have been lifted to
/ unprecedented prices, for which there
ere no known grounds TO account.
/ Stocks Of this class gradually aeeumu-
| late in the hands of investment hold
! ers. either for purposes OF control or
/ Indifference to the market fluctuations
/ IN the price. This may be either in the
/ confidence that the ultimate value of
/ the property win justify present ex-
| travagant prices, or in the realization
/ that the marketing Of large holdings
I would break the prices. The small
/ floating supply makes such stocks
/ quickly responsive to a small demand.
or to manipulation, which is practiced
/ N such stocks for the sentimental ef-
\ tect upon the general market Such
| stocks are, however, equally sensitive
/ 10 light Liquidation. There are many
/ 81 ocks in the present market which are
/ supposed to be at price levels thus at
/ tanned. The fact has been often point
/ ed out Of late that the volume of cred
! its in the country is greatly expanded,
/ and feeling on this point was made adj
J ditiOnally sensitive by the action Of the
clearing house authorities last week in
/ resolving that outside institutions ad-
mitted in future to clearing house priv
! iieges must make weekly reports for
publication Of their copdition. and must
maintain cash reserves in their own
vaults equal to those required
Of clearing house members. This
was obviously an admonition that
! the local trust companies should
maintain cash reserves against
J the very large collateral loans which
/ they have out, instead Of relying upon
I their cash deposits with the banks,
Z which figure as cash reserves there
/ also. The nervousness on Monday was
( thus accounted for. There was ex-
! tensive calling Of loans and throwing
I out Of doubtful collateral.
The money rate went to 20 per cent
on Monday and to Is per cent on Wee-
j nesday. There was much uncertainty
! as to the extent of the troubles. The
Monday market demonstrated, how
ever, that there were ample reserves
still back Of the market, and the liquid
alton was we'll taken at all points of
! the decline. The consequence was q
( rather violent recovery on Tuesday and
a return of calmness and frmness aft
y erward. The shifting uncertainties Of
/ the anthracite labor situation were an
[ influence all the week, and opposing
opinions as to the chances of a strike
were strongly held all the week. The
! difficulty of arriving at a fixed view
Of the outlook had the ultimate effect
/ of discouraging speculative activity
and throwing the market into dull
ness and neglect. General conditions
( were regarded as favorable. The grain
market reflected increased confidence
in a favorable outcome for the years
crops. The point was made that the
drouth injury to winter wheat had
come so early as 70 give ample time
] for replanting Of corn and other crops
! as a possible Offset to the losses in
| CURED. The continued pressure for de-
] liveries Of all grades Of iron and steel
/ products was regarded as evidence of
I the health of that industry. but the
/ iron and steel stocks on the stock
/ exchange were not favOrably affected.
/ Conditions are reported to be improved
| in the copper trade, and railroad earn
| ings continue TO reflect a high degree
[ Of prosperity Notwithstanding the
/ small grain movement The weeks
/ liquidation in stocks has sensibiy re-
/ lieved the money situation, and the
J high interest rate has attracted credits
from interior domestic sources anS
from foreign money markets. The re-
ply filed by the Northern Securities
company to the governments suit had
a favorable effect. as the contentious
made are regarded as strong ones.
The bond market has moved in sym
pathy with stocks over a much mar
rover range United States IS and the
new As declined 4 per cent. as COM
pared with the closing call Of last
| week.
New York Nav 10.-The Commercial