The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-05-18
A CAIN,
BUT FIND LOSS
Bank Statement Shows SurDris.
ing Depreciation.
COLORADO FUEL AND IRON
GOES DOWN WITH OTHER COAL
ERS BECAUSE OF STRIKE.

New York. May 17.-Prices made
decided recession in the first hour of
tOday's short session because Of the
apprehension over the efforts to make
the anthracite miners strike a nation
al strike, but practically recovered aft
er the bank statement appeared. A
fan of nearly two points in Colorado
Fuel and heavy selling Of United States
Steel to below 40 unsettled the close
and made it irregular at declines from
the rally. The selling Of United States
Steel may have been due to fears of
special damage to that industry from
a possible interruption to bituminous
coal mining or it may have been con-
nected with the meeting Of stockhold-
ers on Monday TO radfy the conversion
Of preferred stock and the issue of
bonds The bank statement showed q
decrease in cash Of over $1,000 600.
where q gain of that much had been
expected but this was ignored in the
satisfaction felt over the heavy reduc-
ton in deposit liabilities effected by
loan contraction by which the surplus
reserves were recuperated to the extent
Of nearly $4,000 The weeks reduc-
ton Of so, sos 100 in the loan accodnt
has once before been eQualed. In the
week ending May is, 1901. the banks
reduced their loans $24, 500. This
was the week following the panic in the
stock market when loans had been
made practically without limit to check
the panic, and when the buying to sup
port the market was followed by quick
liquidation after confidence was re-
stored. The past weeks events make
it clear that no such liquidation has oc-
CURED as this loan contraction would
measure. The local trust companies
have been large lenders all the week.
Banking authorities estimate loans
placed by the trust companies at as
high as $40, 200, 600.
There has been lending also for ac-
count Of interior money centers. This
IS without taking any account Of the
large borrowing abroad, reflected in
the foreign exchange market. It is re-
ported that there have been large sales
this week by American holders of Brit
ish consol subscriptions. which have
risen in London to a premium of 2 3-16.
The proceeds of these sales would rep
resent, Of course, actual replenishment
OF local money resources, but the
banks figures must represent for the
most part a shifting of accommodations
rather than a loan reduction.
The stock market has settled back
into a seasonable condition Of dullness
during the week at a generally lower
level Of prices. A process OF. readjust-
ment has been in progress both in the
stock market and the money market.
This has been accomplished rather by
a shifting of accounts than by any ac-
tive liquidation. although there were
some sharp declines forced on Monday
incident to the discrimination by the
money lenders against some of the coll
lateral that has found its way into
loans during the late season. Of liberal
credits. This wedding out process was
the consequence Of PREVIOUS develop-
ments IN the Webb-Meyer stocks and
the construction Of the money supplv
that had been disclosed by the bank
statement of last Saturday. Energetic
measures for the recuperation of the
money market were taken, which were
FACILITATED by the high rate for money
ruling here.
The distribution on Monday of a So
OO0,OOO dividend TO the subscribers of
United States Steel corporation under
writer's syndicate attracted attention
to the enormous profits Of underwrit-
ing The total subscriptions were for
100000 600. Of this 121h per cent or
$25,OO000 was paid in. The paid-;n
capital has been returned to the sub
scribers, and two dividends of Dnr
cent each or S20,0 00e. have been pai5
amounting to 50 per cent of the cash
capital employed. 1t is expected that
two additional 5 per cent dividends viii
be paid, which would bring the total
profits on the underwriting to $40 100000
or $50 per cent Of the cash capital en-
ployed. The result is pointed to as in
dicating the powerful attraction for
the underwriting OF Industrial com
binahons aside from the Industrial ad-
vantages which may accrue.
The market for bonds has grown dun
and has moved in sympathy with
stocks. United States IS declined u
and all other issues 4 per cen. below
the closing call Of last week.