The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-02-02
BORROW MONEY
TO FORM TRUSTS
&--
Loan Expansion Of Banks Be.
IieVed to PreSage Coalitions.
--&
EPOCH IN BANKING HISTORY
RECORD OF MONEY LENT SELL
DOM ECLIPsED.
EPOCH IN BANKING HISTORY

causes on tSe stock market today were
not sufficient tc offset the doubtful
state OF inind in which spectators find
themselves regarding the suit against
the Northern Securities company. in
which a decision by the supreme court
may be given on Monday. The decIar-
alton Of the first quarterly dividend Of
1 pey cent on the stock Of the Northern
Securities company and the mailing OF
checks TO stockholders last night with
out announcement, were taken as sug-
gestive of a desire 10 fOrestaH possible
legal opposition to sucn action. and in
creased The disposition of the public to
await. the judicial decision regarding
the status Of the company
The enormous loan expansion by the
banks was another disqUieting factor.
Increase in loans Of nearly 10000. 600 in
a single week has occurred only a
few times in the history Of the New
York clearing house, and not at all
outside the period last spring, when
syndicate preparations were making
for The great deals which afterward
electrified the financial world. For the
week ending February last year the
loans of the New York clearing house
banks were expanded $50 90, 0eA. which
ss the largest single weeks expansion
in their history. But the vast expan-
sion Of credits the country over since
that time. and the small proOOrtionate
increase in cash reserves for the same
period makes what was a bull influence
last year "A cause of hesitation and
doubt this year.
What operations are responsible for
the past weeks large increase in loans
is not known to the public The bank
statemenc counteracted the influence
of earlier strength of sugar on revived
HINES nj ~ M hp DIN
ties, and of the continued speculation
in Amalgamated Copper. The market
closed dull and heavy at mixed net
changes.
The speculative movement i'm stocks
tEis week was limited almost wholly to
special points. These points were diff
ferent on different days. but the move
ment never became general, beyond the
Slight sympathetic effect due to the
Efforts Of the professional traders to
make the special movements prevail in
the general list. A number of develop
ments during the week Rave been i'm
portant in their bearing upon the gen
eral financial outlook. Such develop
ments at a period of speculative ac-
tivity ike that prevailing at this time
last year, would have thrown the mar
ket into a state of excitement. The in
difference of the market TO them at
.tiflS time Only serves 10 ueIine more
clearly the determination of the money
powers of the country TO await the out
come of various weighty problems. The
fixing of the legal status of the North
ern Securities company by judicial con-
struction seems TO be the most i'm
pOrtant of these problems in the esti-
nation of the street Efforts were made
by the professionals 10 put prices up
last Monday on-the profession of sat
isfaction with the arguments offered tC
the supreme court against the petition.
for a hearing of a suit against the
company, but there was no important
response to this invitation. There has
been a very active speculation in
Amalgamated Copper at advancing
prices during the week. based upon the
developments I'm the trade, i'm an urgent
demand for raw copper both in tslis
country and i'm Europe. The financial
revival in Germany seems to have mad
an important influence on this move
ment, owing to large number Of cleo
trical undertakings which were under
way in that country when it was over
come by financial paralysis. and which
il is hoped VIII be taken up again with
the return OF confidence The renewed
demand for COPPER has an important
bearing upon he industrial situation at
large. but its Immediate significance
TO the Amalgamsted Copper has been
much obscured, perhaps designedly, by
many conflicting claims.
IL is persisteuty asserted that that
company has not only sold out its sur
plus stocks Of metal at the low level,
but has entered iuto extensive future
contracts at the same level. This con-
tention has not prevented the sharp ad-
vance in Amalgamated Copper shares,
and the active Gsmand for raw copper
has given no indication of being over
sold for future delivery. The collapse
in the raw copper market and Anal
gamated Copper was an important fac
tor of depression in the stock market,
but the recovery has had but {. feeble
effect on other stocks The proposals
looking towards peace in South Africa,
now clearly known to be under discus
sion, must be regarded as promising
an event of worldwide importance to
the financial world. 1t has met with
q proportional response in the stock
markets of Europe but has been quite
Intellectual in awakening speculation
here. So j.. has been with other innU-
.eaCes which ight be regarded as i'm
portant. The statement of ten
months operations by the United
States Steel corporation and the bal
.ance IN h9nd Nov 81 has caused in
teresting comment il commercial cir
Cles while there - general assent to
the favorable condition indicated both
for -ne trade and for the corporation.
The stocks Of the corporation, however.
have moved barely point during the
week The decision to remove the war
taxes is welcomed as a measure of re-
lief from the drain upon the open mar
ket money supplies caused by the tax
ing up of the surplus revenues. which
has been a continuing and perplexing
problem.
The money market has grown easy.
the rate for call leans dropping to
per cent. Railroad gross earnings for
the third week in January reflect high
IL prosperous conditions i'm the trans
portation industry Some Of the re-
turns of net earnings for December
show decreases compared with the pre-
ceding December, out the explanation
Is accepted as reasonable that storms
and floods were accountable for holding
back of traffic, which must ultimately
come forward. The violent break in
the grain markets led To some rumors
of resulting financial troubles. but the
speculative liquidation there and the
SHOWS in the winter wheat belt which
prompted il. are considered as bene-
hcial to the general situation.
There has been an active bond mar
ket. especially for junior grades and
those whose investment standing has
been below the best. with a correspond
ing advantage in the interest return.
L : refUn5ing IS declined u and the
S. and new As advanced I per cent
over the closing call of last week
Bond Quotations.
t. 5. REF . T. W. & D. c.
reg. .............1 0Sis lists ............1 1913
l.. :. ref. Is Hook. Val. as 1852
coup Z. o.. ,...10SlsL. & y. Uni is.1Ol19
L. s IS reg. .l0Si4 NJ c. Is ... S2ia
= D conn 1Qs1. n ~ q95E