The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-06-14
Good Tone Prevailed During the
Day. However
LOSSES WERE FRACTIONAL
BEARS CONTROLLED THINGS
DURING THE WEEK.

from the speculative contingent which
was fortunate enough to secure stocks
at the low level This element showed
some anxiety to take profits today, and
look advantage Of the strong bank
statement to sell stocks. The lessened
demand was demonstrated by the in
ability of the market to absorb these
offerings, so that prices ran off sharply
and closed generally below last nights
level.
The days losses We're generally rra7-
tonaL Operations for the advance cen
tinued this morning. especially in Bal
IlmOre & Ohio and in Reading. me
former stock rising at one time nearly
Two points and the latter a point The
large earnings reported by the Balti-
more d Ohio were the motive for
buying stock and reports were current
That Reading would show extraordi-
nary earnings for May. The decision
against the right of the interstate COM
nerce commission to exact certain in
formation from the coal carriers also
was made much Of by the buyers OF
Reading Some of the inactive stocks
which had suffered from recent heavy
decline were bid up sharply today,
members Of the Canadian group being
conspicuous
The loan contraction of 81, 776.IOO by
the banks was. regarded as gratifying
evidence that the stock market Iiquida-
ton had at last become effective in the
recuperauOn of the bank resources The
cash increase of about one and three
quarters millions about agreed with
the expectations, the rise of S47OI. 525
in the surplus about makes good last
weeks loss The statement is as good
as expected in every respect. but the
demand for stocks thus induced was
not sufficient to absorb the sales to take
profits.
Weeks Resume
Gloom and dependency overhung the
stock market in the early days of the
week, but on Thursday there was a
sudden reversal of sentiment. 1t is
certain that nothing justified the ex-
IRENE views held by operators on Mon
day evening and Tuesday morning. On
Wednesday the prevailing view was
that the country was facing a crop
shortage; that the iron and steel trade
had passed the elimination of its pros
perity for the present movement, and
that a general Industrial reaction was
in sight. On Thursday morning the
more mercUrial Of the operators were
willing to Drophesy a new period of ex-
panSlOn in all objections In other
words, the prevailing sentiment took
It's tone from the movement of prices
in cropping attempt to fathOm the mo-
uVes Of the sellers and subsequently Of
the buyers. It was evident that the
bulk Of the selling was prompted not
by dependency over the outlook bat
by special necessities of the sellers
growing out of the over-extensiOn Of
the obligations in new projects, which
had Overtaxed their resources of the
capital and credit
There was good evidence that some
very heavy holdings Of a speculative
character were also being thrown over,
presumably from the necessity, owing
to the great shrinkage in the market
value of securities with a correspond
ing contraction in the basis Of credits,
which required the placing OF addition
al collateral for loans and the supply
Of collateral for additional margins for
holding stocks on credit. The prolonged
period of the decline and the lack of
recuperative power in the market had
made the bears very bold To sell
stocks and borrow them for delivery
and then offer prices down seemed to
have unvarying success in uncovering
stOp-lOss orders. wiping out margins
and bringing a flood of offerings which
could be bought in at the lower level
and yield a handsome profit.
The great financial interests. which
are usually ready to come into the
market and buy simply for support.
seemed Indifferent and Il was suspected
or feared that many of the wealthy
men had their own needs to look after
in protecting holdings of unmarketable
securities,
Down to Low Level.
The level Of prices was getting down
to an attractive level from a strictly
investment, standpoint. and the fact
that the decline was still unchecked
gave rise to fears that insiders had
knowledge Of UnfavOrable conditions
not known to the public and which
prompted the selling Of stocks. It is
characteristic Of the genuine invest
ment buyer however that he does not
concern himself with protecting mar
ket prices and is content to accept Of
ferings at a level which agrees with
his judgment While the market early
IN the week gave the impression that
I'll were eager to sell and all reluctant
buy. the conception grew that the
'uying which goes necessarily with
very sale was of a substantial char
cter- Buying orders on a scale down
-hich took a given amount of stocks,
Or every fraction of the decline be-
anne conspicuous. As a result of
widespread inquiry and exchange of
views and information by bankers, cap
italists and financiers on Wednesday
and Wednesday night. the conviction
crystanized that the current rumors of
coming failures were unwarranted and
that short selling played large part in ?
what was attributed to urgent liquida- [
ton on Wednesday.
Great ananciers abroad agreed with I
advices from New York in response to /
inquiries that some standard stocks +
had fallen to an attractive investment 4
level. based on present rate of divi- 4
dends and prospects for continuance 4
When the bears were confronted with 4
the knowledge that the stocks were
selling and making themselves respOn-l
sible TO deliver and were going out of the 4
market and into strong boxes. and that (
they we're selling into a pocket" ac-
Cording to d phrase Of the street. they {
were overtaken by something like a (
panic and their rush to buy stocks 1
caused a rebound in prices edualine
the drop Of the first part Of the week 4
The arrest Of the decline in itself
checked the fogced selling due to the I
shrinkage, and there was apparent re-
lief, also from he recent persistent 4
selling supposed to be due to neces-
sites elsewhere Confidence increased !
that the general situation had been
greatly strengthened by the uquida-
ton Effected Il is believed that very
large loans have been repaid TO the
New York trust companies as a result