The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-10-25
STOCK MARKET
Is STILL DULL
RumorS Of impending Financial
Trouble at St. Louis.
PAST WEEK IN WALL STREET
GOOD RESISTANCE TO DOWN
WARD MOVEMENT.

GOOD RESISTANCE TO DOWN
WARD MOVEMENT.
New York, oct. 24.-Today's stock
market was almost inert throughout.
The appearance Of the bank statement
caused a sluggish recovery from early
depression, but the movement was
merely fractional and was not main
tanned, the closing being irregular and
still very dull. The reverse item in the
bank statement proved a surprise. the
decline in cash resource being reported
at only $1,000, in the face Of an appar-
eHt outward movement Of cash curing
the week Of between SO, OOO. 900 and "a
100000 Bank ofhcials were somewhat
at loss 70 explain the discrepancy, but
some Of them assert that there has
been large receipts Of currency from
Chicago and the west during the week
and the explanation was hazarded that
this movement might have served to
offset the heavy outgO to Baltimore
and Pittsburg and the cotton region.
The failure Of the customary demand
from the west for currency at this sea-
son has been the subject Of much COM
ment in banking circles, but that there
should have been so considerable
movement in the contrary direction in
the middle of October is quite UMPIRE
Cedented. 1t was suggested as possible
that local trust companies had made
transfers of cash deposits to the clear
ing house banks.
LOndOn's uneasy feeling over the war
outlook in the far east had some slight
effect in the local market, and there
was repetition Of rumOrs in circula-
ton for several days, which have been
as often denied, of an institution in
post Of 100000 at the sub treasury to-
day for telegraphic transfer to st.
Louis. The variety of the demand for
bonds was as conspicuous as for sew
eral days. and the number of quota
lions on the tape for bonds exceeded in
number and variety those for stocks
for a good deal Of the time. A recess
sion to So in United States Steel pre-
ferred was the unsettling influence at
the close.
Review Of the Week.
There is general agreement in Wall
street that the stock market has Of
fered surprisingly good resistance to
the developments of the week. which
were undoubtedly serious in their as
pect The appointment Of receivers for
two trust companies in Baltimore. al
a shock and there was a decline Of
prices in consequence on Monday. This
was the more marked by the reason OF
the considerable commitments to the
long side made by professional traders
during the latter part of last week,
which were hurriedly thrown back
upon the market on Monday But
Thursday saw a hasty repurchase Of
stocks. and the bank failures at Pitts
burg were practically ignored Ia the
trading. During the period Of greatest
depression i'm the stock market several
weeks since, 10 was pointed out by ia
cob H SChiff the head Of the banking
firm OF Kuhn. Loeb & Co, in an in
terview on the situation for the As
ISOLATED Press, hat q demand for Sc
curities was likely to develop while
the process Of liquidation and cOntrac-
ton was still in progress in the cOun-
try at large. There has been undeni-
able evidence of some such condition
in the stock market this week. more
not;Sly in the bond department. in
which there has been a considerable
investment demand noticeable at ad-
vancing prices.
AS pointed out by Mr.. Schiff as likely
TO occur. the prolonged liquidation has
produced some accumulation of bank
ing reserves. with resulting effect on
the money rate. Another effect Of the
process of contraction has been to
withdraw some of the expected de-
mands on the money market for which
resources had been conserved This is
true of the dreaded heavy demands
from railroad corporations for better
meut work already under way. BOr-
rowing Of this kind at high interest
rates was a feature of last falls money
market. That if has not developed this
fall is COrrObOrative of the evidence
from other sources that such works
& .FrreT oil 4
rectiOns. With the prospect of lower
rates for money, the rate of return on
many railroad bonds at present prices
has made them attractive for invest
ment- In the case Of shares of stock.
81 cannot be said that the present Situ-
alton has extended beyond a marked
cessation Of the recent persistent pres
sure to liquidate. There is no longer
manifest the constant selling on nll
news that might be regarded as favor
able which gave evidence for so long OF
the urgent needs Of large holders OF
securities for ready funds.
Buying on Bad News.
The weeks events i'm the stock mar
I,et offer some indication of a contrary
tendency 20 buy stocks on bad news.
This is largely due TO demand from an
uncovered professional short interest
and has not been impressive as an in
Baltimore and Pittsburg have not
failed however. to arouse an uneasy
feeling over the possible consequences.
The growth of trust companies has
been one of the most notable features
OF the recent era OF prosperity. The
enormous consolidation OF capital Of
the last few years and the financial
operations connected with them have
expanded the field Of operations FOR
these institutions, even among the lines
of their original operations. But be-
side this their operations have been
widely extended into the banking field
by the increase Of demand deposits, for
which liberal interest is often paid,
while the legal requirements upon
these institutions. Another field of op-
erations for the trust companies which
has been much criticised has been the
prises by underwriting. The tone OF
the discussion at the bankers conven-
ton I'm san Francisco is sufficient evil
dence Of the frank recognition of
abuses IN this field among bank and
trust company officials themselves The
controversy between the New York
claring house and the trust companies
over the maintenance OF trust company
reserves has brought the question to
the public view long since. There have
been episodes in New York financial
affairs that have illustrated the abuse
on the promotion side. including the
shipbuildiug case I'm the public eye
The Baltimore example of the cOnse-
Quences Of Over-commitments by trust
L.