The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-02-16
COPPER STRONG
AND UP A POINT
An Over Extended Short Account
the Cause of the Rise.
ACTIVITY OF THE MARKET
ATTRIBUTED TO VARIOUS CAUs-
ES AND TEMPORARY.

New York, Feb. 15.-An exceedingly
erratic movement in Metropolitan
Street railway confused the speculation
in today's stock market and discOur-
aged activity elsewhere in the mar
ket. The large scope of the plan an
nounced and the large resources de-
manded for carrying them out caused
some apprehension. as was seen by
the break in the stock to below 16S,
after an opening advance of over a
point. This and the disquietude over
the threatened enforcement OF the tax
on call loan coliaterals caused some
sharp declines in the market, recess
sions reaching a point in some of the
prominent stocks.
There was a rally before the appear
ance of the bank statement and a re-
pewed decline after its appear
ance. Metropolitan was taken
vigorously in hand and marked
up 1ss over last nights last
price. Amalgamated Copper also
became very strong and moved up 29s-
An Over-eXtended short account was
seemingly responsible to a large ex-
tent for the rise in this latter stock.
The combined movement drove the
shorts to cover elsewhere and the mar
ket rallied wiping out the important
point over last night. There was a
further jump of points in Burlington.
Cedar Rapids & Northern, making II
points in three days. Union Bag pre-
ferred gained 8 points. The street was
prepared for a further expansion of
loans and was apparently relieved that
il was no larger than Sl5, 4e9. 100. but
the hope of gain in cash was disap-
pointed, and the decline of 1925 100 in
that item raised the question whether
the return flow of currency to Chicago
and interior points is imminent Tho
market closed quite active and firm at
the rally. On the curb market there
were sales Of Metropolitan SECURITIES
when issued at 10. and the bid price
was advanced 10 116. There were sales
of the subscription rights at 10.
The upward tendency of prices which
was established last week was carried
over into this week and there was an
active market with shifting points Of
strength during the early part of the
week. The selling 10 realize profits
gained effect during the week, how
ever. the mid-week interruption of the
holiday serving as an enCQurag cement
to this, and earlier gains were. in con-
sequence. much reduced. while in a
few weak spots wide breaches in values
were made. The operations were evi-
IDENTIFY in the hands of specula tive pools
fer the most part and disbursement
over the unresponsivs attitude of the
general speculative public had much to
do with the elimination of the rise
There were, however, several changes
i'm actual conditions that helped to-
wards reaction. The proposal of the
Brooklyn Rapid Transit company to
authorize a bond issue of $3.50. 0O0. 900
was a chilling revelation. Details are
lacking as to the portion of this issue
which it is proposed TO float at once
and the purposes TO which the proceeds
are 10 be put but the figures are for
mi0able in the suggestion of demands
upon the capital and the future re-
quiTementS for interest Following
upon other large bond issues for rail,
roads whose claims to earnings wal
take precedence Of present stock issues
and of new stock issues which will
have equal claims with present issues.
the effect on speculative opinion was
disquieting. Last weeks great loan
expansion by the New York banks
which seemed TO be signed in the early
part of the week, was given renewed
consideration and revived anxiety over
the rapid expansion Of credits.
3 Ii l. true that the loan EXPANSION of
the New York banks since the first of
the year has only been a little more
than half as much as during the cor
responding period of last year. while
the replenishment Of reserves mas been
much nearer the increase of last year
so that the present condition of the
New York clearing house banks is NOT
materially different from that of last
year. The position Of the New Yorl,
banks as the holders of the greater
part of the ultimate reserve for the
whole country has 70 be taken into
consideration. New York trust com
panies nave increased their loans on
collateral 10 an enormous extent dur
ing the past year. while their reserves
are on deposit with New York banks
except for an insignificant part and
figure IN the reserves Of the banks. De-
posits OF Interior banks in New York
are included in the same way.
The credit expansion the country
over has therefore Increased the Iiabii-
ity upon New York bank reserves.
This gives added influence TO anv sur-