The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-12-14
SPECTATORS
LET STOCKS co
Heavy Losses incurred During
the Past Week.
MONEY CoNTINUES SCARCE
THE MARKET CLOSED ACTIVE.
BUT WEAK.

disclosed by the weekly statement to-
day proved a disappointment TO Specu-
iators, and stocks were sold freely after
its publication The market closed in
consequence active and weak. Earlier
IN the day the movement was nervous
and uncertain on a rather active mar
ket. There were several alternate adj
yances and declines before the final ac-
tive selling movement. The volume of
the weeks liquidation in stocks under
the losses entailed were felt to promise
a more extensive loan contraction than
that reported, which was 2,065, 400. In
yesterdays late drive against the bears
the impression got around that an in
crease IN surplus reserve might be dis
closed. Today by reason of a heavy
loan contraction and some special
movements of cash from nearby points
the spectators We're the more disap-
pointed for this reason over the actual
showing.
1t is possible that the actual loan
contraction is understood, as the heavi-
est liquidation was in the latter part
of the week and thus figured for only
part of the week in the statement of
averages. But there is also the posi-
bility that the loans called from the
stock market We're put out again to
syndicates and otherwise. At this time
there is no relief in sight from the sub
treasury's drain upon the money mar
ket, and the time loans for all periods
are at per cent.
Severe Losses Resulted.
Severe losses in prices of stocks have
resulted from the weeks trading as a
result Of the crisis in the money mar
ket- The week started off with some
show of resistance to depression, chiefly
shown in a very dull market, showing
the determination of holders not to sac
rifice their holdings at a time when the
absorptlve power of the market was
very slight. The banks and money
lenders seemed to have taken a decision
to prepare at once for the prospective
demands upon them, and they began to
retrench by the contraction of loans
outstanding in the stock market The
result considerably forced liquidation
and a rapidly falling market.
The acute phase of the Venezuelan
situation had considerable effect upon
the market, principally of sentimental
character, but no other cause was
needed for the break in prices than the
entire inability of borrowers to obtain
funds with which to carry their hold
ings of stocks. The fact has long been
known that the money market would
be subjected to severe pressure to meet
Xear-end requirements. A contingency
thus definitely foreseen is almost in
variabIy provided for IN financial af-
the resistance which had been estab- |
lished to the decline Iulled sentiment |
into sense of security that the worst |
had been passed.
The Moving Causes.
The incidents which had the princi- |
pal influence in disturbing confidence
were the transfer of $500, 600 to San /
Francisco on Monday, and the shipment I
or $l,OOO,O0e in gold to South America /
in the middle of the week. The large /
movement of gold to San Francisco this /
fall is out Of the ordinary and no clear
explanation has been offered for it. 1t 1
has been surmised that commitments /
for land speculation on the Pacific l
coast have created the special need |
and this has given rise to some fear /
that the same condition exists to a wide !
extent in other parts of the west, thus
the tie-up of capital which /
is believed to be at the root of the pres
ent trouble in the money market
The movement of gold to South
America disclosed that the London
money market has the power to divert
this demand. which is in satisfaction of /
claims upon London through New
York. 1t is believed that a consider
able demand from the quarter remains
still to be satisfied and the retention of
a 4 per cent discount rate by the Bank
OF England in the face of falling re-
serves is believed TO be due to conf
denCe that the further demand from
South America can be diverted upon
New York Another special factor in !
disturbing the money market was be-
lieved to be the preparation for the
payment of the 100000 600 dividend on
Standard Oil stock next Monday Pre-
money accumulated for this
purpose has been placed in temporary
loans, and was called in for use.
Many Loans Matured.
This is typical of what has been go
ing on all through the market. Large
amounts of time loans have matured
during the week, and some money bro
heTS report that in such cases New
York banks have refused to renew stock
market loans. but in some cases new
accommodations have been secured
from interior banking institutions. 1t
IS also the case that foreign credits
nave been large drawn upon during the
week by the process of placing finance
bills in the exchange market. This is
part of the operation for evading or
oostponing gold exports, which was in
with by the movement to
South America.
The difficulties in the money market
we're by no means confined to the stock
market Mercantile borrowers were
obliged to pay 8 per cent for all time
oans, and in some cases commissions
brought the equivalent of short time
oans up to per cent. The heavy
customs payments have continued dur
ng the week, and have made heavy
nroads upon bank reserves, and inter
lal revenue requirements have also
been thrown upon New York banks by
orders from interior correspondents to
make payments at the New York SUBJ
reasury.
Cause Of Anxiety.
Some anxiety has been caused by the !
weeks events regarding the position of
rarious promotions in which large
iums have been embarked, but which
lave been practically tied up and the
proceeds made unstable by the tight
less in the money market Part of the
weeks heavy liquidation of stocks is | {
believed TO have been for the protection {
Il such projects and to meet syndicate
ais for payment of subscriptions
which the subscribers had hoped would
'e unnecessary in case of a prompt flo ,
alton Of the new securities involved. .
Al other considerations than the money
ituation have been practically ignored !
Turing the week
Bonds have been quite freely sold
With stocks.
United States As declined 4 per cent
s compared with the closing call of
asst week.
Bond Quotations. {
7; s. ref. Is IL; W. & D. c.
coup -------lOSi4lI< e n Uni Is Igl1L !