The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-05-17
STOCK MARKET
WEAK AND DULL
Illness of E. H. Hartman Has a
Depressing Effect.
BANK STATEMENT WAS POOR
Low RECORD PRICES FOR THE
YEAR FOR SOME STOCKS.

mented by the showing made by the
banks, which was interpreted as poor
BY the trading element. The weakness
Of Southern Pacific was directly trace
able to the condition of the health of
she president Of the company The
stock declined an extreme IA, touching
new cow level for the year. This
weakness had some sympathetic effect
elsewhere In the market. st. Paul and
New York Central also made low rec
ord prices for the year. A light demand
from the bears TO cover shorts made an
Impression just at the close, which was
IN consequence steady. The nominal
Increase in the cash item of the banks
was as much as was expected The
fact that tOday's gold export Of $780,
600 to South America was Withdrawn
only yesterday and so figured for only
one day in the weekly averages, upon
which the bank statements are COM
puted. left the probability that some eff
feet Of the transaction would be thrown
over into next weeks showing. The in
crease in loans was generally regarded
as rejecting the further transfer OF OBJ
legations from foreign to domestic lend
ers- During the money Strlngency OF
last fall the recall of OVer-eXLended
credits was an important factor in up
setting the money market The ten
dency to cut down these foreign credits
now is viewed with satisfaction in
financial circles But the professional
sentiment on the stock exchange con
fined itself to the bare showing of the
statement with its consequent inrOad
upon the reserve. TOday's London dis
count market showed a hardening ten
dency resulting from the paying of of
the markets heavy obligation to the
Bank of England and the bank lost
over a million dollars in gold with
drawn for export to South America
This increases. the likelihood of further
gold exports from New York next week
Resume of the Past Week.
The current of prices Of stocks has
shifted constantly within a narrow
range during the whole OF the week.
but the market has gravitated toward
a lower level There is an occasional
spiiling out of long stock by tired hold
ers, grown Disguised with the long
lethargy of the market Professional
traders, who do the bulk of the BUSH
ness, show as much hesitation in the
extending of their commitments on one
side as on the other. The whole at
titude of the speculation is a waiting
one, and it is not generally clear what
IS awaited. One after another of the
causes assigned for the hesitation are
cleared up without relieving the mar
ket of the restraint upon it. Money
continues seasOnably easy and there is
no apparent bar to the use Of credits
haltS. 1t is evident, however, that the
nominal ease of money must be con-
sidered in connection with the tone Of
Interviews between wOuld-be borrower
end lender in bank parlors.
Bankers Out of the Market.
The directors of banks and the large
financial powers. which. are the soon
trolling factor in the banks as well as
In the great railroad systems of the
country, seek to discourage all undue
expansion Of credits for taking on hold
ings OF stock for speculative purposes
end they are themselves cOnSpicuOUSly
CIT Of the market. Great organized
l-aovements in the stock market, backed
by the concentrated holdings Of capital
and based on intimate knowledge Of
the working out of the deals and COM
binatiOnS, are entirely lacking at pres
ent. The great bull markets of the
last few years were largely the result
OF much organized movements. Those
who conducted them are convinced of
the wisdom at present of refraining
from them A large dealer in securities
described the situation by saying that
when he seeks to market a block of Sc
Curities he finds it necessary to mark
the large price concessions in order TO
ind a buyer; but in many cases he
finds himself unable to execute a buy
ing order without bidding up the price
considerably beyond the present range.
Awaiting Lower Level.
Effective demand for stocks awaits
a clearly lower level OF prices, while
strong holders of securities are unWilI-
ing to part with them at going prices.
Besides the Discrimination OF the banks
to encourage speculative activity. it is
a noticeable feature of the money mar
ket that abundant funds are offered for
short time fixed periods, while all of
the eagerness shown by borrowers is
for loans carrying over the end of the
year. for which very small amounts
are Offering Claims are made in the
name Of western bankers that the pres
ent large loans Of western banks are in
part in eastern money markets and are
TO mature in the fail periods when the
largest demands for funds to move the
crops are expected. 1t is argued that
this will leave them in good position tC
supply needs for moving crops without
calling on their eastern correspondents
banks for funds. But the experience OF
last fan proved that the Withdrawing
of eastern loans placed directly by
western banks threw demands for re-
newals upon the eastern banks which
were fully equivalent to the usual with
drawals of deposits from Wall street
banks The course of foreign money
markets following the fotation of the
$15O.0OO, 600 TranSVaal loan is not yet
clearly defined. That it is evident that
the weeks enormous loan expansion Of
the Bank OF England was due to the
fact that its. credits were largely relied
upon by the subscribers to the loan.
London Money Market.
With the allOtments of the loan and
the return to subscribers of over
subscriptions the money market in Lon
don is relaxing, as expected, but very
large payments TO the Bank Of Eng
land remain to be paid and continental
exchanges are turning against London
so that the bank retainS its 4 Per cent
discount rate. Whether a large out
ward movement of gold from New
York is to follow this weeks OutgO is
a question awaited with interest. The
reduction in the cOuntry's favOra biz
trade balance for April. in spite of last
years extraordinary shortage of corr
exports. with which it compares, goes
TO explain the shortage of exchange
and its insuficiency TO meet require
ments as expected for maturing debts
TO foreigners. The light export demand
Tor cotton, owing TO the high price re-
sulting from the furious cotton specu-
lation, adds to the perplexity Of the ex-
change situation The belated compile
tiOn Of the Rock Island absorption OF
the st. Louis & san Francisco. with its
accompanying issue of new Rock island
stock and collateral bonds. calls atten-
Tf0r1 n the fact that yrariOr1e er7cr,or, de-