The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-08-09
STOCK MARKET
WEAK AND ACTIVE
Conditions Regarded as Critical
in Wan Street.
FEARS For The FUTURE
QUESTION OF HOW FAR TEE RE-
ACTION WILL GO.
FEARS For The FUTURE

market conveys the hest description Of
the disorderly selling movement which
followed upon the appearance of the
bank statement Another increase OF
$5,S32,E Geo in the Ican account of the
banks, after a week of such PAINFUL
hquidation as to verge upon panic at
times, upse the newly found equanim-
ny OF the market and an. avalanche
u seIllnS orders came into the already
wagering market. Prices yielded With
downward plunge to the lowest
prices generally for the year. Where
there were exceptions, il seemed due
principally 10 the fact that traders
were so busy with the active stocks rs
not TO have time 10 spare for he ex-
empt stocks. Wall street has been bsuy
all week with attempts to explain last
week small increase in loans, without
any consensus OF opinion on the sub
JecJ, so that tOday's more formidable
increase intensified the obscurity It Is
Hkely tnat the support to the marl1e;
which was accorded on THURSDAY in
vowed loOsening OF the purse strings
OF the banks for the purpose of check
ing the decentralization then threaten
ing. II is also now agreed that much
OF the recent heavy liquidation in
wall street has been for repayment to
banks outside of Wall street under the
trust companies, whose showing does
q.
result is to throw demands for renew
ais upon the. associated banks.
Loans made at the stock exchange on
rlday carry over until Monday. so that
todays demand WAS not due to actual
further calling of loans. but to appre-
hension of next weeks PROCEEDINGS.
Chief pressure today conferred upon
the Pacifics. Union Pacific plunged
downward So points to 65h Missouri
Pacific's extreme loss was 43t Brooklyn
Transit and Metropolitan Street Rail
way lost as much. Atchison 35s st.
Paul 315 and Northwestern preferred Z
TO 100 The last named stock closed
10 bid and 1875 asked. Consolidated Gas
was on "a, Great Northern preferred
., and Delaware & Hudson 4. The rush
to take quick profits by the room trad
ers on the short side caused some viO-
lent rebounds. from these low figures.
but the market was running off rapid
ly IN the final dealings again. and the
crossing was very weak and furiously
active
Prices Of stocks have made a head
long downward plunge this week
through the previous low records for
the year, thus arousing renewed fears
over tie shrinkage of collateral in loans
ana prompting its selling out at WHAT
prices it would brng. The resulting
generalization was arrested somewhat
abruptly on Thursday, by what cause
was not very clear. There was ev!
dence that some of the very large buy
ing on that day was for account of
large banks and individual capitaIists
OF large resources, and whose leader
ship in any movement In the stock.
market IS Of great sentimental indu-
ence.. It was observed also that there
was less pressure of iquida ton of the
urgent kind which indicated the I'M
loading Of collateral forced by the re-
call Of loo a..
able to respond TO.
The effect of these developments was
a swift reyulsfon in sentiment in the
mrket, leading to a quick assumption
that coalition had been formed
among the great banks and CAPITALISTS
10 come to the rescue of the market
by taking freely of offers and by lend
ing Of money and cessation of the sell
ing out Of collateral which had demon
allzed the market and DESTROYED its
power of absorption. This was the
first indication in a long time of anv
other purpose on the part of the DOM
lnant financial powers than to let the
Incubation take its course and the mar
ket take care of itself. This prolonged
absence of influential buying in the
market has been the cause of great nm
easiness in itself, on account of the
differences drawn that the great can
Italists were themselves largely con
cerned IN the need for funds owing to
unWleldly commitments in great Dro-
motions. This inference has been varied
assumptions that hostility between
groups OF capitalists has been involved
IN the fan of prices and that projects
OF absorption of the properties attacked
Jay Dehlnd the persistent forcing down
of prices. 1t was evident that the dis
orderly fall of prices was gettino he
You'd control and threatening wide
spread disaster. and the recovery
brought great relief from a severe
strain. Things had got to the stage
where the rapid shrinkage of prices had
driven out buyers from the market.
WINE the holders of collateral for loans.
seeing the instability of values. were
eager to convert their security into
ready money. me-
I ne market was unfit to absorb this
selllng, which aggravated the weakness
and reacted again by further sbrin;C.,eya
OF collateral These are the conditflns
OF panic and it is an axiom OF finance
thac the only treatment or checking a
panic IS the free extension of craJits
20 aiIord an opportunity for men TO ar
range aTfairs. A sudden contraction of
credltS involves the certain occurrence
OF Widespread bankruptcy. The condi-
tlon OF the stock market of the early
part or the week had reached almost
the opposite pole of the period of tho
great bull market Then there vvera
practically no sellers Of stocks at any
prices and the continuance of demand
without a balancing supply left no
limit TO the possible rise in prices
without regard 10 investment return.
BY, the middle of this week there
seemed to be a paralysis of the demand
Tor stocks at any stage of the decline.
Notwithstanding the steady advance in
the rate Of return on stocks of the high
est grade which was brought about by
the decline So long as buying was
Withheld and the attempts to iiquidate
continued there would be no limit to the
decline without regard to the intrinsic
value of securities. The exertio1 of
main strength is necessary to check
such a course of affairs and that seems
to be what was done on Thursday A
cOnsideTab bic uncovered short interest
assisted the recovery of the market
after the declining tendency will be
forthcoming for any new weakness. The
question of the end o. the liquidation
remains an open one. The movement
of prices has had little to do with the
news of the week. The sustained level
of bank loans in face of the enormous
liquidation already achieved is a matter
of troubled conjecture, and attempts TO
explainit have ranged over a wide field
without relieving the depressing influ-
ence of the fact
The question Of whether the long
shYinkage in prices of securities and
the resulting contraction of credits will
react on the general business situation
has changed into the question Of how
far the reactionary inhpence will ex-
tend Difficulties in financing new pro.
jects in the industrial field. especially