The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-09-27
BREAK IN PRICES DREADED
PANIC COULD BE BROUGHT
ABOUT WITH LITTLE EFFORT.


poses would be for sale again at any
favorable opportunity. This had the
effect Of discouraging the professional
operators. who were planning for
turn on the long side Of the market,
having closed out their short accounts
yesterday.
A disorderly break in prices is dread
ed for the pnicky conditions which it
might bring about. but the feeling con-
tiuues generally that there is iquida-
ton still to be affected. 1t is also
considered undesirable to undertake
any campaign for an advance in face
Of the money requirements for the
crops. The bank statement was re-
garded as satisfactory. and especially
I'm the loan contraction of more than
$4,000 600, rejecting the good progress
made in the necessary process Of hQUt-
dalton. Hopes are entertained that
this process win begin to be effective
in restoring the impairment of credit
which has hung over the market like
a cloud and infected all minds with
distrust and apprehension. The most
: notable selling pressure today was in
the United States Steel securities, Bal
timore & Ohio and the local trac-
tons.
United States Steel fell to yesterdays
low record and the preferred to with
e
new low record at 70iZ. The weakness
in these securities continued to have
a large sentimental effect elseWher i'm
the list. Selling. which developed on
the favorable bank statement was also
evidence of the continued purpose and
probable necessity to sell stocks on
every available opportunity. The mar
ket closed unsettled and irregular.
Review of the Week.
The dull and sagging tendency Of
prices during the early part of the
week gave way to acute weakness and
semi-demoralization later. giving the
market on Thursday evening much the
appearance il he'd i'm -Uly. The seri-
GUS break in prices induced some sup
port later by The larger financial in
terests. The urgent and continuous
liquidation was not explained by any
developments i'm the business or finan-
cial world, and number Of Incidents
which, were favorable in their charac-
ter We're totally ignored. The news
from the various crops and the price
movements Of the great agricultural
staples We're convincing assurance Of
safe harvesting cf a sufficient supply
90 afford % good exportable surplus.
Whe haIveS:S Cf the year have been
looked upon for many months as a vi
tai point i'm the problem of the work
ing developments I'm which capital and
enterprise had become entangled. This
news was taken advantage of to mar
ket stocks. The offer of the secretary
of the treasury to redeem at once the
movement IS with the six
months interest TO maturity was ac-
cepted as practical guarantee against
stringency I'm the fall money markets
But instead of melting any buying Of
stocks it was used as a symptom Of
some underlying danger unknown to
no
to avert. There was a large movement
of currency to New Orleans for the
movement Of the cotton crop. This
was regarded as gratifying from a
monetary ard indus trial standpoint,
the early movement of that crop in
surfing an increased supply for money
purposes and "a replenishment of eN-
change bills to increase our demands
on foreign money markets. The freer
movement OF grain in the west was
satisfactory. for the same reason, al
though 20 serves 90 turn the tide of
The currency movement in that direc-
ton. Railroad earnings and the sta
tistics of railroad traffic showed "a high
level of activity and prosperity there.
These apparent Incentives to buy
stocks were without the slightest ef-
feet and The demand for stocks was
seemingly paraiyZed. On the contrary,
every development of an unfavorable
character was given close attention
and was decisive in shaping the specu-
latVe ser timent.
Weakness Of Steel.
The most effective of these develop
ments was the receding tendency of
the iron and steel market and it's ef-
fectiveness was reinforced by the re-
ports Of closing down of mills at vari-
Gus points. by meetings of iron pro-
dUcers to discuss means tor curtailing
production and by rumOrs Of all de-
gTees of credibility OF CANCELLATION of
orders and trainlOads of iron products
crowding the rails and refused for de-
livery The speculative opinion i'm WaU
street seemed to have settled down 60
a conviction that industrial reaction.
and an economical crisis were fore
Swallowed by these Indications These
gloomy fOrebOdings find no endorse
mcnt from trade authorities i'm the iron
and steel trade nor I'm any other trade.
Reaction is admitted but the admis-
siCns are accompanied Ly assurances
that the normal demand for products
is undisturbed and awaiting supply at
a normal price level, which had been
exceeded I'm the boom period The as
suranCes over the trade situation were
supplemented by attempts 10 explain
the steady stream of liquidation as 1ue
TO special causes aside from tie de1ras-
sion i'm new enterprises which have
proved failures after tying up volumes
Of capital is the principal cause as
signed for the liquidation The failure
company from Bankruptcy is the most
Important case. That an enterprise i'm
which S30.090.000 was made In actual
outlay was unable to raise $1,000. 600 to
avail itself of profitable business was
accepted as "a commentary on condi-
ton probably existing i'm other quar-
ters. Much Of the liquidation was sap
posed 10 be an outcome of this colIapse
and OF other enterprises suffering from
a similar starvation OF capital
Tt is believed also that many mar
gined accounts which were tided over
the summer weakness I'm the stock
market on condition that they would
be liquidated at the first favorable on
pOrtunity have been forced 10 sale.
Some Of the collateral taken by banks
and others from firms is also said to
have come upon the market But it is
evident, Notwithstanding reassurfng
statements. that profound distrust and
apprehension have taken hold of the
speculative mind.