The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-03-01
STOCKS AC TIVE
ALL DAY LONG
Selling Movement Began During
the First Hour.
GOOD BUYING BEGAN LATER
FAVORABLE BANK STATEMENT
THE REASON ASSIGNED.

New York. Feb. 2S.-stocks were sold
with great freedom during the FIRST
hour of today's short session, and were
rebought with eagerness after the ap-
pearance Of the bank statement The
I uncovered bear interest was plainly a
factor in the buying, and their efforts
TO get stocks were felt even during the
selling of the first hour. Commission
houses also reported some buying, at
tracted by the considerable decline OF
the week. New York Central suffered
drive prompted by the reports Of the
landslides along It's tracks. Pennsyl-
yania offered resistance. Traders are
inclined TO shift holdings from New
York Central 10 Pennsylvania at the
same price level. on the ground Of the
higher dividend rate The Peunsyl-
vania annual report also helped the
stock. and the rumors Of possible con-
trol of Wabash continue to have some
speculative influence.
The traders followed the St. Paul
movement both downward and upward
In the belief that they were i'm strong
financial company Amalgamated also
resented the decline and made a good
rally. The decrease I'm cash in the
banks showing of S4S43.000, compared
with preliminary estimates based on
statements by the banks themselves OF
from $500 900 TO over $4,000, 900, caused
the rally. Ii is believed that the late
movement of some of the large cash
consignments lessened their effect on
the weeks averages, which would
throw their effect over to next weeks
statement. The merely nominal loan
decrease was the greatest surprise OF
the statement, and finds no plausible
explanation. The sub treasury had a
credit balance of over $500 900 at the
clearing house this morning. rejecting
the continued drain of funds to that in
stitutiOn. The large customs payments
are explained by the S14020,562 value of
merchandise imported for the week at
New York. an increase of $3,015.09l over
last week. and of S75O,OOO more over the
corresponding period of last year. The
stock market closed somewhat unset
tied.
Money Dominant Factor.
The dominant factor in this weeks
stock market evidently has been the
money market The immediate devel-
Opment has been the hardening ten
dency of time money and the cOnvic-
ton has become more settled that a
scanty money supply and conservative
action by the banks in according
credits is likely 10 be an order for an
indefinite period. An example of the
Importance attached 10 the question
HF iva
sentiment to the discussion of the AL
drich financial bin I'm the senate. Live
~ recoUections are held of the added
difficulties Of the money crisis last fall
by reason OF the withdrawal from cir
culatiou by collection of the govern
ment's surplus and the narrow re-
sources left TO the secretary Of the
treasury for returning the government
funds 10 the channel of the market.
Evidence accumulates daily OF the
large needs ahead of the money mar
ket. not only in the very active EN-
pioyment of circulation by reason Of
the high level Of business activity, but
in the heavy new capital issues in all
branches Of the business world. Last
weeks demands upon New York for
currency from New Orleans We're sup
plemented by large transfers this week
eXpectedly This demand was attrib-
uted to the maturity Of obligations on
March I, on secondary payments on
some Of the large projects entered upon
i'm the west last year. interior banks
are availing themselves of all OppOr-
tunities to draw on their New York
correspondents for performance of
financial transactions with d view to
conserve their own resources for the
needs of the interior money markets
Great activity continues I'm an lines of
trade. and the speculation I'm cotton
and corn add 10 the demands for
money. In the iron trade the advance
in price of lake ores is accepted as as
surance Of the high level of consump-
ton and the prospect Of continued ac-
tivity in all branches OF that trade.
Metals Are Strong.
The American demand reported in
German and Scotch iron markets is
additional evidence of the inadequacy
of present domestic iron production to
meet the consumptive demand Cop
per has risen sharply and the freight
movement Of all kinds OF merchandise
continues to cOngest the facilities Of
the railroads. While there are all ac-
cepted as gratifying evidence of the
maintenance Of the cOuntry's high level
of prosperity it assures large cur
rency needs in the transaction Of the
large volume Of business. Meantime,
the expansion Of productive facilities
in manufacturing lines and the great
projects Of the railroad systems 10 meet
the demands upon them, and especial
ly for expensive improvements of ter
minal facilities, are reflected i'm the
coy 70 furr u
bonds. The outgo of S750.O00 in gold to
BuenOs Ayres and the lowering of the
foreign exchange rate near the gold
export point are reminders that for
eign creditors have claims upon this
money center which can only be de-
ferred by an advance i'm the domestic
interest rate, which offers an attrac-
ton for leaving foreign money at loan
here. In this department there is the
contingency also Of the payment Of
600 70 the Panama canal share
holders and to Colombia. Another fac
tor IN the situation Is the obligation
upon New York trust companies TO ac-
cumulete a cash reserve of something
like $2O00O.O00 in their own vaults by
June /. to meet the new rule Of the
New York clearing house IL is cal
culated that the locking up of this
sum viii reduce the credit facilities
by four times the amount. as IL viii
be Withdrawn from bank reserves,
where il figures as one-quarter of the
banks deposits. 1t Is believed that last
weeks heavy cash decrease in the bank
statement was due TO some prelimi-
nary action TO this end by the trust
companies. Many Of these factors in
the money situation have been i'm view
for some time, but the rise I'm money
rates this week and the heavy inroads
upon bank reserves being them home
to the minds of operators I'm securi-