The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-02-08
Boom in Wabash Lent Strength
to the Market.
BANK STATEMENT WAS POOR
NORTHERN SECURITIES DECI-
SION IS AWAITED.

( $4,OOOOOO by reason of this adjustment
! The loan expansion is still left at a
large figure, and it is believed that
! some of the effect of the S35 00O 600
Pennsylvania loan expansion is
thrown over from last week The ST.
z34,S00 decline in cash reserves Is more
than twice as much as was indicated
| by the known movements of money
The $3,O00.600 payment 10 the sub
treasury on account of the Central Pa
cific note was made last Saturday and
was not figured for a full week in the
averages.
The decline in prices which followed
the publication of the statement de-
Yeloped so large a demand from the
snort sellers yesterday that an eff
fectlve rally followed and the market
closed active and firm. The Wabaskes
were the features of the market. The
movement was apparently based on the
news OF the steps taken towards con-
Solldation of control of the branch
lines which are designed TO form the
Atlantic outlet of the system
Other members OF the Gould group
We're strong in sympathy and were
helped by the Missouri Pacific showing
of an increase in gross earnings for
the fourth week in January. of 1898, 020.
or more than % per cent, as COM
pared with the corresponding week of
last year. Wabash preferred rose an
extreme 31s in the late dealings. The
debenture B bonds were also in large
demand; Sugar was run up point
in the final dealings.
Resume of the Week.
The week has seen some new devel-
opments Of interest in the financial
world and the stock market has not
been entirely without response. Prices
are generally higher and there has
been an expanding volume of business
in securities. 1t is suspected, how
ever, that the opera tons in stocks are
still very largely in professional hands,
although the leadership OF the market
has been Palpa bly, more vigorous and
organized on wider lines, with larger
resources employed 1t is noticeable.
also, that the stocks most directly af-
fected by the actual news develop
ments of the week have not shared
equally in the market and in some
cases have been subjected to pressure
in spite of news DEVELOPMENTS in their
favor. This was notably true of the
Rock Island stocks. There has been
pretty constant selling, too. of Penn
sylVania. following the rather unex-
pected announcement of the putting
forward by a year of the privilege of
conversion of the So per cent bonds
into stock. There has been large ac-
tivity in the coalers and the present
a result of the conditions growing out
of the anthracite strike are not be-
lieved to fully account for the large
transactions. The Wall street public
IS still in expectation of steps to be
taken which wiz cause change in the
status of the Erie road.
Rock Island Agreement.
Importance is attached to the news
OF an arrangement between the Rock
Island on the one hand and the Union
Pacific and Southern Pacific on the
other The exact terms of the agree
ment have not been learned. but it is
generally assumed that the Rock ISL
ana is assured of an outlet for its
traffic to the Gulf of Mexico on the
one hand and the Pacific coast on the
other. while it is believed that auy
projects which might have been in
contemplation for the extension of in
dependent lines to secure these outlets
are thus abandoned The fear of new
lines to the Pacific coast as extensions
for existing lines has been a disturb
ing feature among the Pacific lines for
some time past. This step towards an
adjustment of community of interest
on the subject is regarded as favor
able to securities in the roads con-
cerned.
Another long standing cause of specu-
lative hesitation and repression is be-
lieved to have been cleared IN by the
decision of the New Jersey court of
last resort in favor of the right of the
United States Steel corporation to issue
bonds for the retirement of part of It's
preferred stock. The effect of the de-
eision on the stock market has been
favorable
The clearing up Of the status of the
Northern Securities company by iu-
aicial decision is still awaited to free
from obstruction the progress of plans
IN which great masses of securities are
involved. 1t is the conviction in Wall
street that the lethargy of the securi-
ties market for a long time past has
been due in no small part to the sus
pended condition in which these great
projects have been held.
Metal Stocks Active.
A feature of the week has been the
activity and strength of some of the
metal stock, led by the coppers. ow-
ng to the rising course of the metal
ana confident trade predictions for the
coming year Companies concerned
with the silver and lead trades have
also received attention through the de-
nand for these shares in the market
The underlying cause of the awakened
speculation is undoubtedly the increas-
ng supply of funds available for
speculative purposes. due to the season.
ASHNA VI ANAOS u the reserve
centers
The New York clearing house author
ties have taken this favorable oppor-
-unlty to advance measures for the
requirement that trust companies
which use the clearing house facili-
les shall enlarge their cash reserve
The growth in the number
# trust companies and expansion of
heir deposit banking business has
,alled increasing attention to the oues-
ion of the adequacy of their cash re-
serves, which amount on the average
% less than per cent of their de-
'oslts- The trust companies are re-
lulred 10 increase the percentage of
heir reserves to ; per cent by June
lext. and ultimately to a minimum of
o per cent in June, 1904 1t is point /
"a out that this win necessitate the
ocking up of perhaps $4,000. 900 of |
ash in trust company vaults bv June
next. probably by withdrawal from |
zaults of clearing house banks. where !
he trust companies now keep their |
unds on deposit. 1t is considered that |
he necessity OF this additional seeur- |
ty was demonstrated by the over-ex-
'ansion of credits which developed last /
all But It is clear that the avail /
bic supply of credits for the coming |
all viii be reduced by large amount |
he effect upon the money markets /
When the fall demand for credits and /
or currency begins to make itself felt /
5 a problem of great Importance to the /
financial world
There has been some broadening ten