The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-01-04
SOME DEVELOPMENTS, HOW.
EVER, ON THE BEAR SIDE.

which has become general throughout
the railroad world. The Pennsylvania
lines directly operated showed an in
crease in gross earnings for November
of S691, 500, but expenses increased 81
800 100, so that net earnings decreased
S51,6OO- On the lines west of Erie
there was reported an increase in gross
earnings of $4,000, with a growth of
S50S,2O0 operating expenses, resulting in
decrease IN net earnings of S414 6OO5
The whole railroad list weakened
sharply under the influence of this
showing Prices in some important
stocks, including Pennsylvania, re-
coded to point or more below last
night.
There was an animated recovery
! upon the appearance of the bank state
ment, with its unexpected recuperation
of 1854, $50 in the surplus reserves of
the banks Such a showing is almost
unprecedented for the first week in
January That the banks should have
oeen able to get through the January
! settlement, which required resources in
excess of all previous records, with a
merely nominal increase in loans, was
IN itself a pleasant surprise to those
who he'd felt nervous about the money
sltuatic0. The recovery in prices met
renewed heavy selling, and the market
closed easy and with net changes
mixed. Amalgamated Copper and
united States Steel were notably firm
throughout. Manhattan was weak
ened by the requirements made upon
the company by the state railroad COM
mission for increased equipment.
Money Rate Causes Tremor.
There was a slight tremor of IN
easinesS manifest in Mondays stock
market when the money rate went to
10 per cent. but after that the tone
became strong and confident, and the
Vapors which had been hanging over
the street seemed to be dissipated. The
year closed with a fairly exultant spirit
among operators in stocks. The domi-
nant influence in causing this feeling
was the sense of danger escaped. The
end of the year was looked forward to
with keen anxiety for several months,
and it was not until this week that
assurance became strong that the
preparations for the emergency had
been adequate and successful. al
though the fears of a money crisis had
been much reduced by the announce
ment of the formation of the bankers
pool to supply $4,000. 900 of funds to
the call loan market in case of urgent
need special cause of discourage
ment was the small impression made
upon the loan account of the banks by
the forced liquidation in the stock mar
ket. Holders of stocks had ample rea-
Son to know that enormous repayments
of loans had been effected to the banks
While the weekly statement of the New
York Clearing House association
showed no corresponding reduction Of
loans The last statement of the con-
ditiOn of national banks issued by the
comptroller of the currency showed
that loans actually had been increas-
ing the country over during the period
of drastic liquidation on the stock ex-
change. Many important stocks m the
market touched the highest price of the
year during the first two weeks of
September, and since that time have
fallen to tile lowest Of the year. Yet
comparison of last weeks bank
statement with that of Sept. Is showed
that the clearing house banks had con-
tracted their loans in that time less
than SIS. 0o0,000. It is now believed that
the funds recalled from the stock mar
ket were used to a very large extent
for the payment of foreign loans ma
turing. Authorities here and abroad
agree that there has been reduction
Of bankers Indebtedness to Europe to
the extent of thousands of millions of
dollars in the last few months The
repayment of these loans apparently
has resulted in greater ease in secur-
ing accommodation abroad during the
last week CT two.
Spectators Buy Heavily.
There was some large buying of
stocks by that portion of the specu-
lative community which has main
tanned that tightness of money, which
was the only factor making for de-
preston of securities. Confidence that
a normal relaxation of money condi-
tons will follow in January serves as
additional reinsurance for this ele-
ment. A considerable important inter-
esk which has been awaiting a money
squeeze to cover also were urgent buy
ers. There has been evidence besides
Of an improved sentiment on the part
Of other speculative continents which
had entertained misgivings that the
country had reached the elimination
of the wave of prosperity and that a
long period of reaction is to be faced
The rise in the prices of copper and
of petroleum was cited as against the
contention that the rise in prices of
commodities has eliminated. More con-
fidence was professed also that the
advances in freight rates to go into
effect with the new year will be eff
fective in recuperating the net earn
ings Of railroads. How far this re-
vision of sentiment has extended be-
yond the professional operators in
stocks, who were the principal buyers
this week, will be demOnstra ted when
the professionals come TO make their
new holdings and take their profits
The problem of the extent of sus-
pended syndicate operations and the
volume of their holdings still awaiting
market is another item for the fu-
ture to disclose How far foreign OBJ
legations that have been deferred but
not yet discharged win affect the fu-
ture market for foreign exchange is
yet undetermined.
Bonds have shown strength in SYM
pathy with stocks. but the principal
activity has been in the speculative
contingent in paying issues.
United States IS. old As and new IS
coupon advanced X per cent. as com
pared with the closing call OF last
week
Weekly Bank Statement.
New York, Jan. 3.-The statement of
oil