The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-03-08

ton of the week and the shifting or
loans to foreign money markets would
! be reflected ina that item. but the loan
contraction must have been near $40
600 600 % keep pace with the rate OF
depletion of cash reserves. NO reader
of the bank statement could be lett ia
doubt that further calling of loans
would have to be restorted 10. by the
banks next week and operators threw
over stocks in an directions to pre-
pare for this emergency.
Futile Efforts.
Some futile efforts were made TO
check the decline by supporting orders
but these proved too fiimsy for the
purpose and price. broke violently 70
the lowest of the week. Prices were
crumbling dangerously when the mar
ket closed, at about the lowest ana
on very active dealings Fleece raid
ing tactics by the bears were fac
tor in the slump. The speculative con-
test in Union Pacific was made eVl-
dent by the extreme break of 34 IN
that stock. Losses in st. Paul, Cana
dian Pacific. Manhattan, New York
. Central and St. Louis & San Fran
cisco ran from to 32s. The bank
statement appeared to be the sole FAC
tor in the market and before It's APP
pearance the trading was languld ana
sluggish. The assignment of Dresser d
Co. was not announced until after the
close of the market
The money situation has forced con-
siderable iquldation I'm the stock mar
this week and prices have made
wide declines. The knowledge of the
financial embarrassment Of "a wholesale
commission house was not sutnclenuy
definite to prevent Credence being CIV
en- 70 a swarm Of alarmlst rumors
which got into circulation Thursday
and resulted in acute weakness in the
stock market throughout the day. Wall
street has rested strongly on the con-
viction that its money troubles were
peculiar to itself and that the COM
mercial position i'm the country as a
whole is indisputably sound.
Disgusting Effect
The suggestion carried i'm Thurs
days rumOrs that mercantile estab-
lishment credits possibly were over
extended and likely TO have diihculty
In money matters had a notably dis
ouieting effect. It became evident also
that a powerful and Wen organized
bear party had undertaken cam
paign against values. The undertone
Of frmness which has been evident for
q long time, even through periods
when efforts were unavailing to ad-
vance prices. has been attributed i'm no
small degree TO the belief that the ag-
gressive and successful bear leaders
of past movements have been commit
ted TO the protection Of prices, with
either a large interest I'm stocks or by I
contracts or engagements with syndl-
Gates for the market guardianship or
certain securities The indications or !
large selling orders served 10 shake
this confidence and awaken the rear
that the market would have to face a
skilful and hostile campaign directed
toward forcing prices to lower lever. /
The declining reserves Of the banks
and the loan contraction which re-
suited were the determining factors in
the situation But 40 TO this week this
factor has not been largely effective In
shaking the confidence of a large
speculative party In a spring advance
IN prices. Selling has been grudglngly I
done and only when forced by restric- I
ton of credit facilities. Sentiment this !
week has changed and has become I
bearish. as shown by the ready atten- ]
ton given 20 all unfavorable develop /
ments and the entire lack OF con- /
sider3tiOn given to anything OF KIND /
promising well for values. Great dis 4
appointment was caused by the show /
ing Of net earnings by such railroads /
as reported during the week for Janu- !
ary The December showing mad Deen I
better than that for November, ana /
the fact that many advances IN Ifel8ht !
rates had become effective I'm January 1
led 10 the hope that the inroads upon I
net earnings due to increased operat- /
9. Ia fan
ing January The January returns I
show that increased gross earnings Of 1
railroads are generally almost wiped /
out bv added expenses. Union Pacific /
showed a decrease of over 20 per cent /
In net earnings I'm January, and for /
St. Paul the gross as well as the net /
earnings fell of.
Railroad Earnings.
The gross earnings for February on /
the contrary, showed some handsome /
gains. New York Central gained over /
20 per cent gross. The average rate 4
of increase of all railroads thus FAR re- 4
ported for February reached to nearly /
II Per. cent. This showing failed to re-
assure holders of stocks. The whole 7
sale expenditures contemplated for in
creased facilities and Detterments and !
the enormous capital issues projected /
TO provide means, are given gloomy
reception in the financial world. The /
promise Of an increase of earnings suf-
hcient to pay charges on these issues
is not effective in relieving the fears ]
caused by the rapid absorption Of
available capital, the glut of new Sc
curities and the slow market for them /
and the dread of money stringency
during the coming autumn. The fall
ure of the Aldrich financial bill EN-
phasiZed this feeling of stringency. The \
decision of United States Steel cOrpOr-
alton to proceed with its projected bond !
issue and preferred stock conversion I
was followed by q drop in the price OF i
new bonds, when issued, from above 95
70 below S. This incident had a no.
tably disQuieting effect upon financial
sentiment. There has been a recur-
renee OF uneasiness Over ehe labor out
look, due TO the dispute between the
Wabash and its employees. There is
dread that the dispute may spread and
involve other systems. The judicial in
junction issued against the labor union
has come under interested discussion on
account of its far-reaching scope and
the outcome of the legal dispute is
awaited with lively interest. The
slump in cotton was not without its ef-
feet upon stocks, owing 20 the iquida-
ton for the purpose Of protecting in
terestS I'm the cotton market