The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-08-16
PRICES AGAIN
CARRIED DOWN
Professionals Worked Yesterday
For a Reaction.
FRIDAYS GAINS WERE LOST
RESUME OF THE OPERATIONS
OF THE WEEK.
FRIDAYS GAINS WERE LOS

New York. Aug. Operations in
today's stock market were made up
largely OF professional trading, an I'M
portant proportion OF the stock eN-
change membership having left the city
for an end OF the week holiday Inc
professionals were inclined to work for
a reaction. owing TO the rapidity OF the
weeks recovery I'm the market, Which
miCht be assumed at once 10 nave Deeh
M "A vulnera bic account on the long
side of the market. London evidently
took the same view of the situation ana
had made inroads on last nights prices
here before our opening.
The selling by the arbitragc opera
tors quickly carried prices down to the
London level. There was also free
profit taking in Amalgamated Copper,
attracted by Yesterdays late squirt.
After the London selling was COM
peted there was pause and then
vigorous recovery which retrieved prac-
tiCaly all the losses. This was ap-
parently in anticipation of a favorable
bank statement The statement did
rot meet this. expectation. The loan
contraction in view of the weeks aug
mented buying of securities might have
been regarded as an unpleasant sur
prise but the sentiment of the market
seemed more Influenced by the loss OF
cash where a considerable gain had
been hoped for. The market sold off
again 10 about the lowest with net
losses of "A point or more for some Of
the principal active stocks.
Resume Of the Week.
The downward course of the stock
market terminated for the present with
the plunge of last Saturday and prices
have rebounded with some violence
this week. 1t was not without the air
of some forciblc measur in the way
or support for the market by large
buying orders and by a relaxation of
the pressure for liquidation of loans
that the decline was arrested. Monday
morning saw an ingathering of influ-
entail men in the financial world re-
called from various quarters by Satur-
days events, and IL Is commonly sup
posed that the results of Monday were
the result to an extent of concerted
measures among bankers and capital
lists. The mere fact of the arrest of the
decline had the effect of tightening the
selling pressure upon the market
caused by the destruction of margins
and the constant shrinkage of cOllat-
Fral. There was some further selling
of collateral out of loans early in the
week, causing a continuance of some OF
last weeks rumors of financial difficult
ties overhangfng the market but th5
absorption of stocks was of a much
more confident and determined charac-
ter than for a long time.
After period of some hesitation the
market ruled strongly upward and the
advance became so headlOng that even
the friends OF the movement began tc
have some fears that it was overrun-
ming itself. It was natural that a turn
In the market after so prolonged a fan
In the price should leave a very large
short interest uncovered, and it was
equally natural that professional opera-
tors who had got stocks at the bottom
should maneuver vigorously to heir
the advance and wrest additional
profits out of the necessities Of the un.
covered bears. There was. beside. 4
large investment demand waiting FOL
the market to turn to supply then
with reinsurance TO come and tax,
stocks.
Waiting For Cheap Stocks.
II had been confidently held that tn,
recessitous selling for some time with
out regard TO values of stocks was car
rying the level Of prices lower thar
was justified by any stringency in tn
money market, with consequent highe
interest rates, by any present threa
10 the business condition account or b,
probable shortage in the crops. Blu
so long as money necessities promise
10 force a continuance OF selling o
stocks buyers We're determined to kee
out Of the market on the chance O
getting stocks cheaper BY waiting
These conditions were bound to caus
violent upward reaction at some tim
without necessarily waiting for
change in the conditions which hav
caused the great shrinkage in prices
from the simple fact of the Liquidation
accomplishing the needed reaction an
thus putting an end to forced selling
II was found also when the marke
turned that there had already been a
important absorption OF stocks on
scale held down by capitalists an
corporations and foreign buyers. Thi
had the effect Of lessening the suppl
of stocks in the market when the buy
ing developed Buying on a scale dow
satisfies itself with acceptances of of
ferings and affords no check to a IA
In prices. The buying for foreign &C
count. which had been admittedly larg
but which is variOusly estimated. ha
had the effect OF weakening foreign ex
change and bringing it within reason
able distance Of the gold import pOin
Favorable Features.
Besides these wholly normal factor
OF an upward reaction there nave bee
some factors regarded as improvin
the outlook. The fall in foreign eS
change calls attention to one OF thes
Liquidation OF a very large foreign in
debtedness has been an important elt
ment i'm the weakness Of stocks as in
dicated by the high level maintained b
domestic bank loans by reborrowing Il
payment Of foreign loans. Last year
demands for payments Of foreign loan
came in the fall crisis OF the none
market when the greatest demand
were being made upon the reserve Ger
tiers for funds to move the crops. TheI
IS every promise that the movemer
OF the crops this year viii bring Il
normal inward movement Of gold frOl
abroad to help out purely cofnmerci'
needs which had been anticipated las
year by these large foreign borrowing
for speculative purposes The fall
exchange and the hardening Of Londo
discounts clearly foreshadOws such
result. sentiment of growing cor
fidence IN the making Of good slap
crops capitalized with the agriculture
departments report for July. There
"a reservation regarding the corn ere
on account of its lateness Neither
there entire confidence IN the stabilii
Of the iron trade. as shown by q
constituencies 10 the report OF the shu
ting down Of some of the department
or the United States steel corporate
said to be for customary repairs. 4
more immediate consequence m wa
street were the increase in the divider
rate on Canadian Pacific from fac
n six-poiut basis and the Representa-