The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-05-24

DISAPPOINTED
No Cessation in the Liquidation
of Stocks.
ST. PAUL HAMMERED DOWN
PRICES TOOK A PLUNGE IN LATE
DEALINGS.

New York, May 2S-Hopes of a turn
in speculative sentiment were again
disappointed by the action of today's
stock market, in which acute weakness
developed under a free outpouring of
stocks in liquidation from all quarters.
The selling movement gathered force
With the progress Of the trading. which
was most active at the close and about
the high point of the day. A violent
break in United States Steel stocks
soon after the opening had a very un-
setting effect on the whole list The
only explanation of this special weak
ness was a rumOF that the Chicago
plants of the company had shut down.
The trading was somewhat disconcert-
ed also by the large Increase in the en-
gagements of gold for export to .Argen-
tina on Monday, bringing the total
shipments for that date up to s., 250, coo.
In the early selling there was evidence
OF support for Pennsylvania, and its
comparative steadiness served as a par
tai offset to the weakness elsewher
But that stock was among the leaders
of the decline at the last losing two
full points. The most conspicuous Iouf-
datlon, however, was that in St. Paul
which was forced down SO points IN
der enormous offerings, making a new
record for the movement by a margin
of nearly points.
Low Record of the Year.
The final break took the average level
OF me market to the low record of the
year, effectually wiping out the recov-
cry Of yesterday and the day before.
The unfayorable criticism of the under
Wfluns OF the new Pennsylvania stock
at the subscription price to stOckhOld-
ers was depressing factor in the gen
eral market. The implied necessity of
paying a commission to a syndicate to
secure the subscriptions TO the stock
was regarded s a discoura ging indicas
JiOn of the condition of the market for
securities. The SPECIAL weakness of St
Paul was attributed in part to the re-
ports Of threatened strike among the
Ireight handlers at Chicago. The bank
statement disclosed a decrease in cash
of Sl,236,e0e. compared with the expec-
tatlon of a gain of from 81, 000 600 TO 81
100000. But the loan contraction OF s5.-
4f6,l00 reduced the reserve requirements
sufficiently to leave a small margin of
increase for the surplus The market
steadied a moment on the appearance
of the statement but prices plunged
downward again in the late dealings.
Union Pacific, Southern Pacific, Mis-
souri, Pacific, AtChison, Reading and
Amalgamated were the severest suf-
ferers.
Prices Suffered.
Much liquidation has been effected in
the stock market this week and prices
have suffered in the process. On sew
eral days the downward tendency be-
came precipitate and the selling ap-
parently urgent At intervals the mar
ket showed a tendency to rally. and
for. z
mination of the decline and watchful
for signs Of a recovery. Professional
opera tQrs changed their position from
the short 10 the long side of the mar
ket once or twice during the week. but
these proved false starts, and the I'M
mistakable evidence of renewed IiQui-
dalton on the recOverieS turned the
market downward again. The under
lying causes of the depression were the
same as for some time past, and may
be summed UP in the terms undigested
securities, fears OF money stringency
during the fall, widespread unrest Of
labor, declining iron markets and a
general fear that the prosperous era
for the country has reached a culmina-
ton, with a period of reaction TO be
faced There have been a few special
developments during the week, which
have had more immediate effect in
causing the selling of stocks. The wild
speculation in cotton has involved some
large losses on the short side, and some
Of the selling of stocks is believed to
have been forced to make good these
losses.
The cotton speculation has been a
cause of Uneasiness, for the fear of its
general effect as well Large credits
are tied up in cotton speculation and
there has been fear of a crash in that
market and speculative losses to be
met. The fevirsh market for the sta
pie has led to plans for curtailment of
production and talk of shutting down
cotton mills. and it is evident that
large reductions in export demand are
resulting from the high price of cot
ton, with a corresp Onding reduction in
the supply Of foreign exchange.
outgo of Gold.
The weeks heavy outgo of gold has
] been of immediate influence in de-
pressing stocks although the domestic
money has not been effected by the
withdrawal of gold. The sustained
] drmness Of foreign exchange in face of
the gold exports shows that they were
evidently made as the cheapest form
of remittance in the immediate pay
ment of maturing foreign obligations
] by bankers. Early in the week also the
I English discount market showed a ris-
/ ing tendency. as the enormous Obliga-
! lions 70 the BANK OF England incurred
/ for applications for the TranSvaal loan,
were paid off. The reduction of the
/ bank rate of discount from 4 to 31s per
| cent on Thursday relaxed the exchange
situation materially and the hope was
| engendered that the demand upon New
| York for further gold would cease. It
/ is known, however, that large loans Sc
cured FROM Berlin bankers two and
three months ago will mature during
( the next few weeks. The current bal
anCe Of merchandise exports in our
! favor was below expectations at the
/ time these Berlin obligations were con-
| tracted, owing TO the small cotton ex-
| ports, a poor showing of grain exports
and the large imports of various ma
teriaIs- Considerable further ship
ments of gold are thus within the pos
| sibilities-
Uncertain Labor Outlook.