The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-12-06
TONE OF DOUBT
AND HESITANCY
-@--
Spectators Are Not Yet Sure Of
Their Ground.
ANOTHER SELLING MOVEMENT
SEVERAL LEADING STOCKS ON
DOWN GRADE.

New York, Dec. 5.-Ihcre was n tone
Of doubt and hesitaucy in today's stock
market which quite nearly followed the
appearance IN yesterdays market OF
signs of a elimination of the rise. Yes
terday's large volume of dealings and
the small net changes in prices pointed
both TO heavy realizing and 10 large
short covering. While the realizing IS
q strengthening factor of the market,
the reduction of the short interest de-
prives il of a technical factor OF
strength. A renewed advance in
Brooklyn Rapid Transit. followed by
local fractions, this morning, obtained
little following I'm the general list A
selling movement followed which car
lied a number OF leaders. such as
Pennsylvania, United States. Steel pre-
ferred and Amalgamated a point un-
der last night. A feverish and irregu-
lar recovery succeeded upon the pub
HCati0n of the bank statement. The
gain of half a million dollars in cash
reserves was an agreeable surprise COM
pared with the expectation Of a de-
crease of several hundred thousand
dollars, and il is supposed to be due
10 the marking up Of former dlscrep-
ancies the other way. The increase in
the loan item of a little over 81 900 600
was not disturbing. The market closed
steady and not far from last nights
level The sterling exchange market
was weak and declined further to
level which viii assure the movement
toward New York of any available gold
supply in foreign money markets. The
Financial Chronicle points out that mu-
nicipai bond sales for November were
larger than for any previous November
except in 1895. The large issues Of new
railroad bonds which have been sue
cessfully placed in the recent past is
also the occasion of comment favor
able to the financial prospect. A con-
trast is afforded by the figures of new
interpretations with a capital of $1,000
goo or over, during November, which
fell to the lowest aggregate of any
month since the early part of 1899.
Review Of the Past Week.
The temper Of speculation in stocks
has undergone a change this week. and
prices have advanced in a broadening
market. Commission houses report that
there has Been little growth in outside
order business, and the movement is
supposed to be principally due to ope-
rauOns by professional traders and ha-
bitual operators of the wealth class.
But the technical significance of the
movement is probably not less on that
account. Operators in stocks for a long
time have found their only success on
the side of reCeding prices. This week
the market gave evidence Of being over
sold, and the bears failed of their re-
cent successes in forcing out sales of
stocks when they offered prices down.
Among the industrials especially, which
have suffered such drastic scaling down
of prices. the urgent demand to borrow
stocks for delivery, which commanded
premium in some cases. gave warn
ing Of danger to the shorts and prompt
cd buying to cover.
The early covering movements among
short spectators of the smaller class
did not at first disturb the more power
ful operators on that side of the marx.
ket and they were inclined to avail
themselves Of the rallies in prices to
put out fresh lines at the higher level
Some Of the selling that was attributed
TO realizing by the longs was undOubt-
edly this renewed short selling. With
the persistence of the upward move
ment through the week an extended
short interest was thus left uncovered
until past the middle of the week. when
il became clear that a bear element
of a stronger and more persistent char
acter than any heretofore reached was
being driven to cover. with an impOr-
tanJ effect on prices and an awakening
Of decided animation I'm the market.
The fears of the shorts were aggravat-
ed by their suspicion that an absorb
tion Of stocks had been going on by the
great capital and banking cOmbina-
riOns, whose operations contemplate
vice policies and are based upon con-
victions as TO general conditions and
their ultimate working out
The recovery in prices gained force
and proceeded i'm the face of various
news factors that were unfavorabIe but
which had to do with the conditions
that have been more or less foreseen
and have been an element in the spec
ulation for a decline for some time
past. For instance. the cotton crop
indicated by the governments estimate
az below 100000 bales would be re-
garded as amounting TO a national ca
lamity were it not that the heavy mar
keting Of cotton during November
awakens SOME skepticism toward the
estimate. Reports continue to be re-
ceived of the closing down Of the iron
and steel mills and Of new measures Of
retrenchment and economy in that
trade. Railroad earnings, while still
holding above last years level, both
for gross and net earnings. show a pro-
gressive decline in the ratio Of the in
crease for both.
The Worst Discounted.
But these developments are met by
the growth Of the opinion that the enor-
NOUS shrinkage which has occurred i'm
tN- prices OF securities has already
been sufficient Co discount the worst
that could happen of trade reaction
and contraction. The sentiment over
the industrial future also has grown
distinctly more hopeful. This is espe-
Cially marked IN regard 10 the iron and
steel trade. from which come reuorts
indicating that the decline I'm prices
of the product has met a revived de-
mand which promises some consump-
tive absorption of the lessened volume
of output. The measures Of economy
already adopted and these i'm cOntem-
plation, and the reduced freight rates
on steel products for export, arouse
hopes Of an available outlet in the for
eign trade
The details OF the foreign trade state
ment for October offer gratifying evil
dences Of the revival Of the export
trade in all lines of manufactures. The 4
seasonable cold weather has given an
impetus to all lines Of distribufive
trade, and the coal trade. i'm which con-
siderable congestion had DEVELOPED. lis
reported to De especially benedting by
the cold weather Tn the stock mar
ket no small part has been played in
the recovery in the constant circuIa-
tion 90 rCmors Of important adjust
ments Of control and OF policy touch
ing the relations of groups of capital
lists. tending TO harmonic these rela-
zions The money market has shown
the expected relaxation following the
completion of the December settle
ments. Conditions abroad ais well as
here promise continuance Of a firm