The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-11-15
OPERATIONS ON
A SMALL SCALE
Prices Driftsd AimIessIy in Wall
Street Yesterday.
GENERAL TREND DOWNWARD
REVIEW OF THE CONDITIONS OF
THE PAST WEEK.
GENERAL TREND DOWNWARD

New York. Nov 14-Trading i'm today's
EtocG market was ustless and narrow.
Operations were on too small a scale to
offer anything Of a representative cha1
acter. There were q few points of
strength. including Chicago & Alton, on
a revival Of rumOrs Of its possible abb
Eorption as a connecting link En- a larger
system. The market as a whole failed 10
show continuation of yesterdays move
ment TO cover shorts, and prices drifted
rather aimleslv. The bank statement
proved decidedly more favorable than the
forecast had indicated, but nevertheless
Its publication was followed by a brisk
selling movement which Centered upon
pennsylvania. costing that stock the
greater part Of yesterdays gain. Reading
and Amalgamated Copper also lost more
than point, and the whole list receded
10 below last night
The decline I'm the cash reserves Of the
banks proved to be only 81. 1890 Yes
terdays estimate indicated an outgo Tor
the week OF 100000 without allowance
Tor yesterdays arrival of foreign gold
10 the aomunt Of nearly 100000 The
deposit liabilities Of the banks have been
reduced by $lf,629 600, principally through
the loan contraction Of Sl0,2i0.5O0. The re-
serve requirement is thus diminished 20
me amount Of $3,657,4o0. leaving an in
crease in the surplus Of S744 200. With the
q falling off Of the movement OF currency
20 the interior and the SUPPLY OF foreign
gold atlOat for this port tho money mar
lOr uneasiness, without counting the like
hhood Of q considerable further move
ment OF gold this way The market
closed and heavy
Enormous selling Of the United States
steel securities. followed by selling of a
similar character I'm Pennsylvania has
disturbed the stock market during the
week Inc sympathetic effect Of the
weakness Of these stocks was resisted for
q time and the general market showed
degree Of firmness, but ultimately sue
O. a Nnr HnN ra
source and the motives Of the selling
nave been subjects of wide conjecture,
much Of which appeared i'm the form OF
assertions mat could not be verified. The
dihgent activity Of a large and well 5r-
gained bear party accounted FOR some If
the rumOrs set aflOat. and "A large part
OF the dealings iu the most prominent
stocks was evidently for professional ac-
count In the form Of trading in and out
Tor short turns on the movement with
out attecung the aCutal holdings of stock
permanently. But the success attending
these professional operations and the
steady downward course of prices point
ed 10 process Of actual liquidation and
OF impelling causes for 70 which under
mined speculative confidence and weak
ened the whole market. The course Fl
lne United states steel stocks had for
the most obvious explanation the de-
pressed condition of the iron and steel
trades now freely Acknowledged. The
professional leaders of the bear cam
paisu against these securities apparently
liked for an objective the price of 30 for
NilH preferred and 10 Tot the common. and
those points were touched by both stocks
and overrun by "a for the preferred. Large
covering of short contracts then followed
and rallied both stocks.
Covering Movement.
The covering movement was encour-
aged by the formal announcement of the
decision to cut prices no further than
had been done I'm contradiction to nu-.
merous rumors IN persistent circulation.
But sentiment over the further develop
maufg mis- fUunDrfanf index Ha g
still much unsettled and doubtful. The
ERECT upon a consumptive demand OF the
new basis or prices Is awaited. COntiu-
ued discussion or plans OF economic
measures by reduction Of wages and agi-
totiOn for reduction Of freight rates on
iron and steel products are accepted as
indications of further contraction i'm the
trade. The DEVELOPMENTS have indicated
the futility of the United States steel cor
pCratiOn as a device for maintaining sta
hilty in She trade as had been hoped for
at ITS formation. The restraint which
the corporation had been able to exer-
else upon the rise In prices during the
period Of active demand was proved in
cffectual TO conserve that demand and
the present Cuts-in prices point TO the
necessity Of OLD methods to stimulate de-
maud afresh. The result has been To
arouse fears that former precedents of
an interval Of extreme depression i'm the
trade must be faced. Greater confidence
Is now felt in the power to restrict prO-
duction and prevent the Improbable ac-
cumulauon or stocks. But the effect of
this process upon earning power and divi-
dcrd payments is dreaded Account
must also be taken Of the effect of the
operations Of the preferred stock con-
VersiOn syndicate. Tt is made occasion
for criticism that while this syndicate
is under contract with the corporation
Mt an agreed compensation Of I per cent
or the par value of preferred stock con-
verted. the heavy decline in prices OF the
corpora tons preferred stock is made, by
force Of circumstance. to increase the
profit on the syndicate's operations.
Low Price For Steel.
on Tuesday Of this week. when United
States Steel preferred touched 4qA. the
low price for the second mortgage bonds
vas 90. thus offering a margin of 15A
points of profit on the conversion Of pre-
ferred stock into bonds, besides the 4
per cent commission to the syndicate.
The syndicate was q large buyer of the
preferred stock on Tuesday, and this
helped to rally the price. No authOri-
syndicate operations remaining TO com
plete the conversion of the available
stock. The depression in the iron and
steel trade had n direct bearing on the
movement I'm Pennsylvania. owing TO the
large tonnage Of iron and steel products
carried by that road. The falling off in
the coal trade by both anthracite and
bituminous was also offered as factor
IN Pennsylvania weakness. But tho
principal cause OF the selling Of this
stock was believed TO be the large exc
pansiOn in the capital Of the system
which is IN progress. The extreme weak
ness Of foreign exchange is attributed in
Tart 20 foreign subscriptions to the new
railroad bond issues and principally TO
the heavy offerings Of bills against cot
ton exports. which have forced the ex-
change rate down to the gold impcrt
roint. I'm spite OF measures by foreign
bankers TO protect their gold supply The
gold movement is expected 10 reach con-
siderable proportions. and relief from the
interior demand upon New York for cur
rcncy Is thus felt TO be assured.
The recent notable absorption in the
bend market has been halted, but prices
have not yielded materially
United States 2s declined - and the old
Sc and old As. q per cent below the clos
inu bid cf last week
Stock Quotations.