The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-08-24
LITTLE INTEREST
IN THE MARKETS
Though the Speculative Pools
Did Some Business.
COLORADO FUEL WAS WEAKER
MoRGAN'S RETURN HAS NOT
DOOMED STOCKS as EXPECTED.

I
/ guild. in spite of some brisk operations
/ on the part of the speculative pools
I and a substantial increase in the sur
/ plus reserves of the banks, which is
! usually made a signal for an upward
/ movement of stocks. 1t did not es-
/ cape notice, however, that the actual
I reserves of the banks failed to show
! the expected small improvement. the
! turn in the tide of the sub treasury op-
erations having taken up entirely the
contribution to the money market
/ made earlier in the week so that the
/ cash of the banks was decreased some
{ SS1I,300. The contraction in the loans
/ Of s10.460 leo shows that the funds
which supplied the stock market dur
ing the week came from the trust com
panies and from proceeds of borrow
! lngs abroad, as had been supposed.
! The action of the banks in reducing
/ their loan account is in expectation
/ Of the coming demand from the inte-
! rlor which has set in for season. The
! decision to postpone the dissolution of
the Southern railway voting trust by
| refrainlng from the declaration of the
| dividend on the preferred stock had
only slightly depressing effect upon
| that company's stocks. as it is sup
/ posed TO be a step toward the compile
/ ton of the arrangement with the
Louisville & Nashville. Colorado Fuel
/ was erratic and became weaker after
( an early advance. The newly arrived
/ operator whose buying advanced
Southern Pacific published extensive
/ announcements to explain the faith
/ that was in him, and the demand for
/ pennsylvania was supposed to come
4 from the same source. The moderate
/ advances that followed these move
ments and the publication of the bank
statement met selling to realize and
the market closed irregular.
/ A somewhat Vacfliating sentiment re-
| gardtng the speculative outlook has
1 been reflected by the fluctuations of
! prices in the stock market during the
week. Confidence has continued I'M
abated over the prosperity of the gen.
eral conditions in the country, but So
lioitude has been manifested at differ
emit times over the resources of the
! money market to carry the present ex-
banded credits through the period of
| expanded circulation of money in the
| country The return to New York of
J. p Morgan after an extended vaca-
! ton gave rise TO the revival of specu-
lative animation which was followed
by sharp reactions. As there has been
/ speculation for some time past over the
| expected developments to follow Mr.
| MorSan's return. and as those develop
ments We're not announced immediate
| ly. the realizing of profits was a more
natural consequence. according to the
custom of speculative buyers
There can be no doubt that there are
| settlements outlined of important prob
| lens which have awaited Mr.. Morgan's
approval and advice. and which will
/ have important effect on financial af-
fairs. but the hopes professed in specu-
lative quarters of the rapidity and
/ scope of these decisions were somewhat
! absurd 1t is evident also that the
speculation has already partly, If not
| wholly, discounted the effect of some
of these projects.
The belief that the anthracite coal
miners strike would be Immediately
| settled by Mr.. Morgan's presence was
! disappointing. The faith was strong
in Wall street that the end of this
| struggle is approaching, and that the
suspension of mining is not likely TO
extend into the season of demand for
! winter supplies.
The. undecided situation in which
Louisville & Nashville has remained
ever since the passage of control in
| the speculative buying of the stock in
the open market, and the subsequent
deposit of the stock with ]. p. Morgan
/ & Co for settlement, is not likely to
endure much longer. Efforts to dis
count settlement have been an import
ant influence in the market, not only
in that stock, but in the whole south
ern field, as it is expected that a COM
prehensive readjustment of railroad
relations in that field will be involved
| The entry of the St. Louis & San
Francisco into that field is supposed to
enter into the final settlement, and the
movements Of the Gould stocks have
suggested the possibility that they are
also involved.
| fc al haf
caused by the impairment in the health
of the president of the United States
Steel corporation commanded the early
attention of the leading spirit in the
combination. MIR. Morgan's active re-
sumption of the direction of the far
reaching affairs which he commands
was, therefore, an important incident
in the financial world, and was clearly
reflected in the stock market
| There was also an easier tone deVeI-
oped in the money market after a
slight furry on Monday as a conse-
quence of the unfavorable bank state
ment of last Saturday. The source of
the relief 10 the money market was
not obvious. 1t was alleged at first to
be due to funds attracted from the
| interior by the higher rates prevailing
here but this view was regarded with
skepticism in view of the active money
I markets of the interior and the trans
Ter OF some IunOS from New 1Ork 10
interior points. The more likely eX-
PLANTATION was that the New York trust
companies were placing funds in the
local market aud thus relieving the
pressure on the clearing house banks.
There We're also large transfers of cred
its to foreigners early IN the week, but
as the money rate here relaxed the
foreign exchange hardened. and the
offerings of finance bills in the ex-
change market diminished markedly.
The fact that further 20 per cent
installment of subscriptions on the
$3.50 OOO. 900 British loan comes due in
London on Sept. 4. the talk of an early
issue of a Transvaal loan in London,
and a report that the French govern
ment will issue soon a new loan of
$3.50. 600. 900 were additional influences in
hardening the exchange market, in
which the short interest is now very
large London also sold stocks here
steadily all week
The movement of currency to the
interior is expected to develop suddenly
into large proportions as soon as it
sets in. and the transfers through the
| sub-treasury on Wednesday, Thursday
! and Friday were regarded as probably
I the initiation of the movement Last
| year the course of the current changed
in the week ending Aug. IL. when the
| interior gained less than half a million,
| as was the case in the following week.
But in the week ending Aug. 81 the
| interior gained IS, 424, 600 at the expense
of New York and varying sums every
Iweek thereafter until November, when
| c,Yy.reOt turned again In the