The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-11-01
STOCK MARKET
VERY LANGUID
Bank Statement OfAbsOrbing In
tereSt in Wall Street.
ACTUAL CONDITION UNKNOWN
REVIEW OF OPERATIONS FOR
THE PAST WEEK.

every Friday of the weeks currency
movement from the bank officials
themselves. Yesterday none of these
estimates were regarded as reliable.
These estimates showed a cash OutgO
for the week Of less than S13.0000O0
and some of them ran to over $15.0OO.
GOO Last Saturday the bank state
ment in its item of cash reserves failed
10 show the estimated decrease by
S4.00Q.000. Under the workings Of the
average system, last weeks statement
would tend TO be corrected in this
weeks statement. Conclusion is Uu-
avOidable that the actual showing of
the cash reserve item in the bank
statement. if it correctly represents the
actual condition of the banks, must be
based uDOn money movements not yet
disclosed 10 the public in the after
noon on which the Friday estimates
are based.
Today's statement failed 20 have a
cOnsOling effect on the stock market,
and a very languid upward movement
OF prices resulted. 1t was partly due
to the fact that there was a skepticai
feeling yesterday as to whether the
fOrWida BILE decrease I'm cash would be
reflected in tOday's bank statement
There is a belief that the discrepancies
In the bank statement may be eX-
planned by cash operations between the
not appear I'm the reports of currency
movements. The increase in loans was
not unexpected and is attributed to
preparations for Nov I settlements
and to borrowings by eastern insutu-
tons in connection with their large
cash Withdrawals. The closing was
steady. but very dull and with the ad-
vancing tendency checked.
Review of the Week.
The tightening of the money market
this week has had a repressive indu-
ence on the stock market and has had
some effect also in checking the broad
ening tendency of the bond market,
which had begun to reach notable pro-
portions. Following the bank and
trust company failures at Baltimore
and Pittsburg last week came the news
Of q run on a St Louis trust company
by some classes of their depOsitOrs and
the enforcement of the sixty days no
tice of withdrawal allowed TO the trust
companies. This condition led to large
Withdrawals of currency from New
York to reinforce the position at st.
Louis. At the same time the heavy
shipments to New Orleans for crop
moving purposes have continued and
the long delayed demand from the west
Tor moving the grain crops has set in.
ON Wednesday the transfers of cur
rency out Of New York through the
sub treasury reached the unpreCe-
denied total of S2.95O.OOO of which 81
100000 was TO st. Louis. which was also
the highest record for a single days
shipment 20 any one point. The emer-
gency shipments to St Louis are be-
lieved 20 be a temporary need, al
though the increasing activity Of the
western money markets may keep the
money there over the crop moving per-
iod The developments Of the regular
crop movement requirements has dem
OnStratcd that the seasons needs for
that glrpOse must be met freely from
New York as usual and has disprOVed
the expectation that western resources
would be sufficient to meet the require
ments, which has been maintained in
some quarters The indulgence of that
expectation last fall proved costly TO n
large speculative element i'm the stock
market and the memory Of last falls
experience bcgets a spirit Of caution.
The spirit of distrust of banking insti-
tuti0ns revealed by the st. Louis cpl
sode has induced conservatism i'm the
banking world in general and dis
position TO conserve reserves. The eff
feet of these factors has been a rise
I'm the local rates for money. both on
call and on time. But the further ef-
feet has been a preCipitate break in
the rates for foreign exchange to the
import point. which has spread the
pressure OF the situation into the for
eign money markets. Merchants have
boeu heavy buyers OF cotton during the
week. impressed with the fear Of the
formation OF another corner in our cot
ton market. The outgO Of wheat and
corn also has expanded. The rise in
local money rates has checked the de-
nand for exchange to cover previous
sales. which have hitherto steadily alb
sOrbed the supply Of commercial bills
as fast as they came into the market
The current demand for gold on the
continent is keen but the final out
come of the exchange situation Is mo-
certain although 70 seems clear that tn,
New York money market has secured
control of the exchange situation, Will
power 90 get gold imports at need.
Movement in Copper.
Operations in stocks have shrunk {,
n few special movements. due to causes
affecting individual stocks. The quar-
rel among the copper interests in Mon
tana has been the basis FOR activity in
Amalgamated Copper, and Unite,
States Steel has been somewhat affecte,
by the Information disclos q in the ap
phcaion 20 place the second mortgage
bonds I'm the regular listed department
ct the stock exchange. The iron an,
steel stocks and the railroad euuipmen
stocks as a class have been affected b,
unimproved conditions i'm that trade
and by the large decrease in net earn
ings for the past quarter reported b,
the Pressed Steel Car company. Rail
road officials have come to admit 70
the first time some declining tendenc,
in traffic, and freight solicitors are re
ported again IN, the field. after a lon,
period Of inactivity. Mercantile agen
Cies also report a cautious attitude OF
the part of the merchants and a disin
clinatiOn to order ahead. There has no
resulted any marked depression of tn
stock market as a consequence Of thes
developments.
Some complaints are heard Of tn
manipulative character of occasions
advances I'm prices. But this. III true
does not detract from their evidence O
an improved speculative sentiment an,
or the cessation OF pressure to liQuidat
which defeated all manipularive EFFORT
10 advance prices. for q long time
Many high-grade inactive stocks Wer
sold down under forced liquidation o
small lots. TO prices which offered ~
Indication Of the value set upon then
investors were willing 60 part witt
them unless forced to do SO by the nee
OF funds.
The rise in money rates has haltel
the investment absorption of bonds, bu
caused little reaction I'm prices.
Bonds continue steady with good in
Quiry and a demand Tor safe irVest
ment IN mortgage setGifl.ts. The pur