The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-08-23
BROKERS WENT
TO YACHT RACE
Little Doing On Wall Street in
Consequence.
MARKET STAeNANT At CLOSE
MOVEMENTS FOR THE PAST
WEEK REVIEWED.
MARKET sTAeNANT AT CLOSE


sent at the yacht race or for the end of
che week holidays out of town. a holi-
day on the London stock exchange
subtracted also from normal business.
The sluggish movements Of prices un-
der these circumstances were of little
significance. u. 5. Realty preferred
suffered from the rumors prevalent
that the next dividend would be passed
Minneapolis, St. Paul and Sault Ste.
Marie rose momentarily on the declara-
ton Of the first dividend of the stock.
then yielded on profit-taking. Favor
able weather, the review of trade by
the mercantile agencies were a re
assuring factor, and the crop news had
nothing threatening in it.
Attention was attracted to the large
import or reimport movement of cot
ton thus far in August for delivery OH
contracts, owing to the existence of A
corner. This is an adverse factor in
the exchange market. The Financial
Chronicle points out that the municipal
bond market has suffered in common
with that for other securities from the
dearth of demand, and estimates that
no less than 155 offerings of municipal
bonds throughout the country have
failed of taking in the last three
months There was a slight splitting on.
Of stocks on the publication Of the bank
statement, as the large loan increase
was disappointment, but the room
shorts in the narrow market covered
again before the closing, which was
steady and almost stagnant. Bankers
are inclined TO attribute the loan ex-
pansiOn to some corporate borrowings,
but to large extent to regular COM
mercial demands.
Review Of the Week.
The upward reaction in stocks which
developed in the early part of the
month reached its limit this week and
there has been a sharp downward re-
action. The successive fluctuations
seem to be the normal sequel to the
prolonged decline rather than a re-
Spouse to any new factors in the situa
ton.
With the cessation of the forced sell
iEg of collateral out of loans, a violent
rebound was to be expected when the
longstanding bear account began to
cover. With the satisfaction of the
demand of uncovered shorts it was
natural that there should be augment
ed selling pressure by those seeking to
take profits who had been buyers at
the low level The market OF the early
part of the week showed plainly enough
that many of these buyers at the low
level were capitalists Of large resources
the floor of the stock exchange to guard
their interests. The upward rebound in
prices was thus prolonged to some eX-
tent. Before the middle of the week
the manipulation had become violent
and the uprush Of prices so feverish as
to arouse distrust. Subsequent events
proved that there had been very heavy
prOft-talEing under cover of whipping
IN Of the market, and the supporting
tactics were afterwards withdrawn.
The reaction was cOrrespOndingly YiO-
lent and sudden. but 1t gave rise to
none of the uneasiness and rumOrs of
business disasters that had become 50
prevalent at the lower levels of the
market. The reaction was an admOni-
ton not to be mistaken that the ex-
igencies which were being prepared for
by the long liquidation were real ex-
igencies and that the resources pro
vided TO meet them were not to be
safely dissipated at once in wild spec
ulatiOn again. The course to be eX-
pected Of the market in the absence Of
important influences would be a lessen
ing series Of fluctuations. followed by a
period of dullness and sluggishnesS.
The tightness Of the money market and
the expectation of the early levelOp-
ment of the seasonable interior demand
for currency TO move the crops are
factors likely to tend to this result.
The course of interior exchanges dur
ing the week has pointed Enthusiastically
to the conclusion that money is begin
ming to move from New York and that
the balance will shortly turn in favor
of the interior.
Gold From Australia.
A timely event in view of this deveI-
opment was the arrival at San Fran
cisco Of nearly $1,000 900 of Australian
gold. which was made Immediately
available to New York bank reserves
by Geographic transfer through the
medium of the treasury department
1t so happened that in the final upward
squirt Of prices on stocks much was
made by the bull leaders that the Co
lombian senate had finally rejected the
Panama canal treaty and that an
agreement had been reached for the
passage through the coming session of
congress of a comprehensive currency
measure. The subsequent news that
the Panama canal treaty was still
available for adoption by the Colombian
legislature and the report that dis
agreements would limit the possible
action by the next session of congress
on the currency, therefore. disappoint-
ed the spectators who had bought
stocks on these accounts and aggra-
waited the reaction. The effect of the
Panama canal news was not due TO any
views held on the larger political and
commercial bearings of the project but
to its probable immediate effects on the
money and exchange market. 1t was
argued that the defeat of the treaty
would relieve a drain on the foreign
exchange market TO provide remit
tances in payment of the $40, 600. 900 due
to the Panama Canal company and the
10000. 900 due to the Colombian gov
eminent under the terms of the treaty
and would leave the treasury depart
ment with resources to relieve the
money situation. The effect OF the
financing of these payments has been a
rather obscure problem in Wall street.
L he foreign exchange rate has moved
decisively away from the gold import
point during the week. partly on ac-
count of protective measures adopted
] by foreign money markets and partly
owing to large selling of stocks here
for foreign account. London having
Joined freely in the movement to take
profit on large accounts accumulated
/ in the later stages Of our decline. There
mas been some brighter feeling in the
Iron trade, Notwithstanding another
cut in the price Of southern pig iron.
as reports are had Of some increase in
| demand at last appearing on account of
the lower range Of The price An ad-
! vance in the price of copper has also
! been an event of influence on the stool,
market. Railroad earnings have made
satisfactory showing. Railroad Off
Gals continue to express confident
views of the outiook for traffic The
business ~ fh.a no41rt,.,. a. l,~o-- .--