The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-12-07
SITUATION
UNCHANGED
Semi stagnation Prevails in the
Stock Market.
OUTSIDERS STAY OUTSIDE
EFFORT TO BOOST PRICES THIS
WEEK FAILED.

New York. Dec 6.-The dealings in
stocks today reflected no change from
recently prevailing doubt and hesita-
ton of the speculation community.
Professional traders were early indis-
posed to leave contracts open even
over Sunday. Selling during the first
hour was followed by selling after the
bank statement appeared, the weak
ness of the showing have been so well
discounted that its publication induced
no outside selling. 1t is reported that
some large sums of cash are going to
nearby cities for use as change ia hol-
iday business. The small loan increase
by the banks was not unexpected and
it was feared that still greater eX-
parison had occurred in that item, as
several large transactions are known
to have been made in the loans
The foreign houses are now the i'm
portant factors in the loan market and
il is believed that the resources for
these loans have been secured by draw
ing foreign exchange, which is in eff
feet a short sale of exchange. The
high rate for time loans serves as an
attraction to foreign lenders. There
have been very large repayments of
foreign borrowings for some time,
cured on very advantageous terms for
employment in the stock market. Their
expiration was an important influence
in the recent heavy liquidation in the
stock market. Some of these funds
seem to have been re-loaned during
the past week at the better terms now
prevailing.
Resume of the Week.
Operations in the stock market this
week have been confined to the test
ing efforts of the professional traders.
Some attempt was made to lift prices
early in the week, on the assumption
that the Dec. 1 disbursements to the
money market would relieve the ten
ton there and afford resources for
speculative operations. The special
reason for the payment of a so per
cent installment of SIS, 000, 900 of new
Illinois Central stock was assigned as
a cause of the special stiffness of
money on Monday but as the week
progressed il was realized that what
ever relaxation there might be in the
money market was only temporary
The tightening process was manifested
in the time money market, in which
commissions were exacted for loans for
the shorter periods, which raised the
rate to the equivalent of per cent.
The week passed without any ex-
port of gold to Europe but ST. 600, 00O
went to pay English obligations for
wheat. and which is analogous TO a
remittance from here to London direct.
The Bank of England has given up
large sums Of gold also for shipment
TO South America, and it is thought
probable that further calls may be
made upon New York. The export of
gold from New York directly to Paris
or London is believed to have been
evaded only by a large use of bank
ers' credit, by selling of bills of eX-
chance to be covered by purchases
later. short interest in sterling eX-
change of many millions of dollars is
said to have been created in this
way.
London Money Easy.
The London money market has grown
easier under the influence of large gov
eminent disbursements and the pay
ment on Monday to shareholders of the
constituent companies in the shipping
combine, so that large repaymeRts
have been made to the Bank of Eng
land, which has left it's minimum dis
count rate unchanged. Large forces
of depletion are at work. however, up
on the banks reserve, and an advance
in the bank rate is looked for before
the end of the year, and such an ad-
vance may draw gold from New York
In New York the banking reserves are
suffering heavy depletion from domestic
sources. Customs collections continue
to run very high and demand payments
TO the sub-treaSuFy average $1,000
daily. The return movement of cur
rency from the interior is also delayed
and large remittances have been made
to New Orleans. II is rumored also il
banking circles that loans made di-
Fectly in the New York market by
interior banks before the crop move
ment demand, and while call money
ruled high here, have been withdraw
on a very large scale. The result i:
to increase the demand upon New Yort
banks for loans at the same time thai
inroads are made upon their cash re-
serves. Interior money rates continue
high and the continuance of active
trade at high level of prices main
tains the demand for credits through
out the country. The possibility of &
year end money squeeze has been the
dominant factor in depressing all ac-
tivity in the stock market and finan-
ciaI powers are united in frowning up
on the speculative use Of resource:
which will evidently be needed FOL
more essential purposes. There are ele-
ments in the trade situation the def
mite outcome of which it is desired L
await.
Effect of Higher Wages.
The advancing of wages of railroad
employees and the raising of trans
portatiOn rates is extending over tn,
breadth OF the continent. The effect.
upon railroad net earnings, upon vol
ume of freight. upon cost of materia
transported and upon final demand fo
consumption must be readjustsd II
the iron trade also authorities TepOr
a general tendency rather downward