The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-10-12
POOR PROSPECT
FOR The MARKET
-&-
Bank Statement Again Shocked
Wall Street Spectators.
Money REMAINS STRINGENT
Heavy LIQUIDATION ALL
ALONG TIE LINE.
MONEY REMAINS STRINGENT

ALONG TIE LINE.
Naw York. oct. 1.-THE response OF
,ss stock market 10 the shock OF
,oor bank statement served as evil
S4Bes of the large marginal holdings
~ stocks that MIST sim remain In The
.,syEst. The nervousness disclosed by
a. prospect OF further Withdrawals on
- stock market ~ the banks could
ssrdly be- due 20 others than those
boIdIues stocks on margin borrowed
nancy. None Of the best equipped
dpaucial authorities could pretend 20
sy,I4iE the showing made by the
hanks. The shifting Of loans due 10
tba weeks splendid syndicate opera
lions NAV be supposed 10 have Offset
rbe large Liquidation In the stock
,Barxrt and thus account Off the ex-
landed loan account Of the banks. But
he conjecture Is az a loss 20 account
gor the Disappearance OF the gain Of
over s. 900 900 in cash reserves as a
resl,lt of the receipts for foreign gold
5t,rlps the week. The small gain In
the net deposit also fails TO prove
With Jhe changes in the loan and re-
serve items.
The statement showed the standing
NJ the purplus with the exemption of
reserve allowed against government de-
pozits. as wen as without that exemp-
ton But the present 0ollcy OF the
hanks Is not eneroaehlBg upon the
reserves against government deposits
has been so clearly shown as 10 leave
little comfort for spectators In the
houe OF a resort 10 that relief. There
was some large selling before the an-
pearance Of the bank statement, which
Was attributed TO the account OF
large operator who was selling al diff
ferent times during the week. but the
selling az the last was quite promis-
cuous. including the putting out OF
short lines by professional traders,
The assumption was general that fur
ther Joan contraction by the banks is
TO be expected,
Heavy Liquidation.
Important Liquidation Of marginal ac-
counts has been effected In the stock
market this week, with corresponding
benefit TO the resources OF the banks
available for other purposes. The re-
suit has been a growing relaxation OF
the pressure upon stock market bor-
rowers TO sell stocks and repay loans.
The question has come into prominence
whether the forced liquidation is nm
ally over for the season and the spec
ulatOrs short OF the market have
shown their fears that this may be
true by covering their short contracts.
This short covering has been an Inn
portant element In the recovery In
prices, but observers have professed
20 see evidence Of buying by import
ant inside interests as well. NOtwith-
standing the important Tecuperation
accomplished BY the banks. they have
persistently refrained from extending
their stock market loans and have I'M
Piled their conviction that 1t Is the
part OF wisdom 10 conserve their re-
sources for the large demand from the
interior which Is still likely TO be
made. The unchanged form in which
last Sundays bank statement was Civ
en- out counting government deposits
with others. as demanding the main
tenance OF reserves against them. in
spite OF permission by the secretary
Of the treasury TO release the reserves
against government deposits. was, ac-
cepted as notice from the banks that
no loans would be extended to stock
market borrowers.
Powerful Pools Caught.
The important liquidation OF the
early part OF the week followed. There
Is good ground for the belief that
this included large holdings by some
or the powerful pools and individual
operators who have striven TO contest
the reaction and revive the dull spec
ulation. In addition 10 the relief OF
the money market thus afforded. no
less than $1,000 900 OF belated gold ar
rivals have been made available 10 the
New York market. or this about
N,'Oo,ooo was OF Australian gold. trans
TERED by telegraph through the sub
Treasury al san Francisco lmpediately
upon its arrival there, and the re-
malnder was made up by parcels OF
gold from Europe OF the lot OF South
african gold secured on passage BY
the National City bank. There have
been large payments on account OF
ne" 1ork taxes during the week and
s"e deposit OF the proceeds in the
oanAs mas a'sied TO their resources. /
Ihere nave been some large syndicate
transactions Also including the pay
urht OF 90 per cent installment OF
nearly 4lSOOOO00 on account OF the
LOUISVILLE q Nashville transfer, and
80 per cent cali on subscriptions 20
the snip combine syndicate. calling for
about E5,000b00
Preparations for these was an un-
seI,hhg influence on the money mark
e. put The payments were presumably
te-ueposlted IN the banks. The banks,
.o"e'er stil refrained from re-lend-
ING 10 the stock market and the money
bu"seAey continued. When buying of
s'O'Ns was renewed on the oresump-
uOh mat the increased banking re-
SOURCES were 20 be made available for
sAe STOCK market. the call loan rate
N01'u De run up 10 10 per cent. which |
- considered prohibltive for stock
l.a"en purposes. IL Is evident
'Ne hquidation has been we'll held
- nalG ana directed with a purpose
y" AVOID all possible damage.
Cautious Policy.
me interests involved in the large
-rV1u'atire commitments In the stock
80 80 az J" The control OF the banks
~ az uAl companies. in the ownership
tNe '"ise system and In the great |
t,oJ1'ls OF combinations and their re-
t,','ns crop OF new securities, are so
:, le'y related and so nearly lden-
90 80. ,1aI this cautious and consider
-r- po.Iey Is easily understood. On this
~. .-'1 'he relaxation OF the pressure
-" marginal holders might be in
- Plslea as designed to steady prices
~ preparations for further llquldation
80 80 20 take advance of the short SELL
~ 'e,lsion 20 cover by a rally in
49, Speculative sentiment is Tins
80, ~ uncertainty whether the neees-
~ LIQUIDATION has been accompIN he'd
VI whether % has sinonI,, ,,s,ssgt