The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-07-19
Tone of Speculation on Wall
Street Was Narrow.
Bank STATEMENT WAS FAIR
RESUME OF THE PAST WEEK ON
CHANGE.

Soiu early IN ire day on the ASSUMPTION
that yesterdays upward movement had
discounted a favorable bank statement
so that no further rise could be expect
60 after its publication. There was a
monetary rally when the statement
appeared, but the selling was renewed
and prices receded to a level substan-
tiaily below last night. closing dull and
heaNy without a rally. The gain in
cash was almost twice as much as had
been anticipated, but the small loan
contraction was a disappointment in
view Of the heavy LIQUIDATION in the
STOCK market. It was hoped that the
large portion OF the weeks corporation
toahs which were abroad and the fact
ehdt the Pennsylvania company has
oegun the repayment of it's six months
notes would result in a substantial con-
traction Of loan obligations The fact
Inat the decrease only amounts to 81
DO 9uO gave rise to a supposition that
me banks have been putting out some
renewed loans on a large scale to pri-
Nate individuals with the proceeds of
the weeks liquidation. Pressure upon
Afnaigamated Copper was renewed and
Its uecilne OF nearly two points. the
wax ahhess OF ST Paul and a three point
urop IN Consolidated Gas caused a bad
IMPRESSION upon sentiment Rock ISL
ana was again forced down TO vester-
udy low level New York Central
NdS supported and recovered a one
P1lit uecline. The Toledo, st. Iouis &,
western stocks made sharp rallies from,
yesterdays violent breaks There were
IdIge DEBATED declines in some of the
ictlVe stocks which had not vet been
traaed IN during the late periods of re-
S .Ueioh- Inc encouraging views of the
BUSINESS situation expressed bv the
weekly commercial reviews and the
IaIBe percentage of increase in gross
drIliilgs OF railroads according to latest
reports were ignored in trading.
Resume of the Week.
heavy liquidation in the stock mar
net mas been in progress during the
sr.I,lhe. MIthout any developments in the
$3.50 !. e idI SITUATION to adequately ac-
NOuht Tor II The weakness which de-
Ne4oped last week in New York Cen
S - al on the assumption that its needs
III FUNDS must be met by some new
dpiIdl issue, with the danger of a rem
eutlon Of the experience met in III
notation of the new Pennsylvania
stock issue, spread generally tbrougb-
~ the INST as 1t became known that
various railroad corporations had sim
liar need for funds. which thev vrara
supplying by temporary loans. having
Iilsh rates OF interest rather than at
Tempt 10 sell securities at a sacrifice in
the present unfavOrable market This
was not a strictly new situation &c a.
mad been known for some time that the
Ioaus sharing in the control of Hook
ing valley had given their names on
r SIX per cent basis. An extension of
a maturing service bond Of the Rur-
hngton for two years on four per
cent oasis was also a plain svmDton,
OF the dlsinclnatiOn OF railroad cOrDor-
auons 10 attempt any large new issues
at this time. The violent decline in
pennsylvania shares in connection with
Inc new issue stock was q conclusive
demonstration of the unfit condition of
the market to absorb new issues even
of high grade and the congestion OF
newer industrial issues in the market
had been notorious for months. Never
theiess, acute uneasiness over the
money situation of the present and
prospective was caused bv the an
nouncement that the Burlington had
borrowed S5,000000 until next March
and the Union Pacific $40. 900, 600 for a
year and half on a six per cent basis.
Many rumors thereupOn became cur
rent of large prospective borrowings by
various railroads and of the conse-
quent inrOads to DE made upon money
supplies. The market took on a tone
or generalization on Wednesday. and
grave fears began to be felt Of the CON
sequences OF the uninterested shrinkage
OF values. On that day the influential
bankers in the clearing house assocfa-
ton took counsel among Themselves
and allowed ii to become known chat
careful investigation had assured them
or the SoundneSs Of the banking sittT-
alton and the safety Of the position of |
ali city banks and trust companies. so /
Tar as they could ascertain. The bank
ers were averse TO making formal an |
nouncement Of the fact until the re-
suit OF such an investigation on the /
ground that unfaVOrable Influences
might be drawn from its being Thought I
necessary TO take such steps But the /
ground for confidence resulting from
the canvass was commonly known in /
the financial district and had a no
table effect in reassuring sentiment. |
Another fact that had a strong effect /
IN restoring confidence was the sharp /
response OF the foreign exchange mar /
Ret to the rise in the domestic money /
market The strength which had been /
maintained in the exchange market and |
sustained outward movement of gold /
In view of the display in interest rates 4
here and abroad were Indications of /
1istrust on the part of foreign capital 1
which gave small hope Of relief for do
nestle money needs from that source.
But on Thursday there was a precipi- /
late break in foreign exchange which /
the situation from one of |
apprehension of further gold exports
10 a prospect that gold could be
brought in on occasion of need For
sign banking houses offered large
sums OF money in the New York mar
ket.
Taken by Foreigners.
1t was learned that a large. proper
ion Of the Union Pacific and the Bur
ington notes had been taken by for
'eign capitalists. The buying Of stocks
IN the New York market for foreign |
account was also said 10 be on a liz
,ral scale, although this movement
Vas more obscure as the decline in
'rices here has been so much more /
"a id than in London as TO afford
profit in large transactions, sales in
London being covered here at the de-
line. The rally In the stock market
week wiped out a large portion of the
'arlier losses. and some OF the active
tocks We're lifted above last Satur-
lays level Some Of the most sensa-
iOnal mSyements of the week were in
rigil- grace investment stocks. which
ire seldom traded in. Some Of these
'rOke scores of points on z few or Oh
lngle transactions, such operations
nay be accounted as showing some ur
-ent necessity for funds. But the linn
ted amount Of the sales and the quick
ecOvery IN such stocks on Thea Dur-
base Of equally smaH amounts prs
'''des the idea Of any general liqnida