The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-11-29
STOCK MARKET
CONTINUES DULL
Dealings Confined to Operations
by Room Traders.
FAVORABLE BANK STATEMENT
REGULATORS SUSPICIOUS OF
INDUSTRIALs.

New York, Nov. 28.-There was
nothing representative of influential
financial sentiment IN todays dull
stock market, the dealings being con-
fined to small operations by room
traders. The minor industrials were
relieved by the severe pressure to
which they have been recently sub
jected and were inclined to rebound,
gains of a point on upward being the
result i'm "a number OF cases. The gen
eral list failed to respond to this in
fuenCe, and there was "A disposition 90
sell following the appearance of the
bank statement which was favorable.
The market was trivial as were the
others, and the market closed firm at
a recovery and not far from last
nights level in any case. The gain
in cash by the banks was only about
half what was estimated, but the de-
cline in deposit liabilities was effected
by the loan contraction OF $6.394. 600.
The resulting decrease Of $1.445,350 in
the reserve requirement helped out the
surplus to that extent, bringing the
increase in that item Of S2.123.S50 Ad-
dttional gold was received by today's
incoming steamships and reports from
London indicate a prospect that part
Of S3,000.O0O 60 arrive there next week.
VIII be engaged i'm New York The
shrinkage from last years level is still
confined 10 the four large speculative
ceuters i'm the east. while the three
largest cities i'm the west and south and
the other cities of the whole country
coIdinue 20 show Clearings in excess
of last year. The tone OF the weekly
report Of the mercantile agencies was
considered encouraging as to the agri-
cultural districts and the mercantile
and distributiVe line. although the
manufacturing and industrial branches
are in "A mood of disCOura cement.
Review of the Week.
The weeks stock market has been
chiefly remarkable for a series of saw
age onslaughts upon various industrial
stocks OF minor corporations. The rail-
road list and the industrial stocks
which have already gone through a
drastic process Of contraction stood
comparatively firm in the face of this
attack and even made some slight
headway against the current. Rut the
violent declines going on in the minor
industrials effeCtually discouraged any
great activity for a rise and this,
coupled with the interruption of the
Thanksgiving holiday, resulted in
rather dun and uuinterestiug market
outside OF the special movements re-
ferrcd to. The successive breaks in in
dustrial stocks were evidently the re-
suit of a systematic wedding out
process, primarily on the part Of the
banks and mOnev lenders in respect
10 collateral loans, but to an import
ant extent by party Of professional
traders who seemed TO have knowledge
OF the intention % those throwing the
stocks out OF collateral and who re-
sorted to fierce raiding tactics on the
stock exchange. Given a security that
IS stHl largely held i'm original hands
having been we'll distributed and never
actively traded in, and for those rea-
sons not carefully protected by sup
porting orders in the stock market. and
technical conditions are presented
which permit of violent and sudden
price movements which may be only
remotely related to the question Of
actual values. The neglect into which
a long list Of securities has fallen in
the daily trading I'm stocks i'm itself
makes them undesirable as collateral
for loans by banks. which Il is import
ant should he instantly convertible into
cash by selling Of loans and market
ing Of collateral. The course OF prices
this week under this process is an
effective demonstration Of the Insult
abIeness Of much of the collateral for
the purposes for which It was held
Distrust Of Industrials.
There was little specihc news to ac-
count for the movements in this de-
partment I'm fact. there was a notable
tendency for the violent breaks TO occur
on what could be regarded as good
news such as dividend declarations on
preferred stocks concerning which
vague rUm0rs of doubt may have been
current. Distrust 81 the whole indus
trial outlook and n conviction that re-
action and contraction, such as have
been demonstrated I'm the iron and steel
trade. must be faced I'm all lines Of in
dustry were az work IN causing this
movement The whole fabric Of the
organization Of industrial corporations
is under suspicion. and every new evil
dence of iusudiciency Of working cap
ital whore liberal dividends have been
distributed and Of threatened new cap
ftal issues ahead of stocks TO supply
this deficiency, serve to intensity this
suspicion and aggravate the pressure
of securities on the narrow market.
Behind the present situation doomed no
a prospect Of new competition when
industry shall revive. Many of the
consOlida tons on which present inflated
capital issues have been made are seen
to have been effected at extravagant
valuations SO that room IS left for du-
plicatiCn of facilities at q smaller out
l8y OF capital on which return must
be secured The extension OF the term
OF the International Mercantile Marine
Underwriting syndicate from Dec. T.
I
J. 1905. is interpreted as measure Of
the present hOpelcssuess OF nOtati0n OF
Industrial securities. and the earliest
period within which any revival may
be looked FOR The comparative drm-
ness Of the United states Steel secure
ties during the renewed scaling down
of values in other quarters goes to-
show that an adjustment Of the whole
list % The basis fxed in that premier
security as q standard has been in
some sort intended.
Marking Time.
In the general market the movement
has been a sort of marking time In
waiting for the fan money conditions
20 work themselves out. Further gold
has started from London. but on
Omitted scale. and the Bank of Eng
land has used the customary means 10
protect the London stock Of gold Lib
cral supplies Of exchange have come
into the New York market and 20 is
commonly believed that "A part of the
absorption for sp-called investment ac-
count is IN preparation for the future
need IN connection with the Panama
canal payment To induce this opar-
alton the rate of exchange must fall
low enough 20 offer a pro6t Dy the
time OF the maturity of the bills which
viii contrast favorahly with the rate
Of interest tn the LEGAL market rise
in the cali money rate consequently
depresses- the exchange market by re-
leasing supplies to that market while