The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-11-22
CHANGES WERE
NOT IMPORTANT
Market Was Weak at the Start,
But Gained Strength.
BANK STATEMENT WAS BAD
REVIEW OF CONDITIONS FOR
THE PAST WEEK.

New York, Nov. 21-Trading in
stocks was Of very desultory character
today, and the net results in the way
/ Of price changes were not important
/ The ruling tone was one Of depression
! but the market made a considerable
( recovery and closed firm. The pUbli-
cation of assertions that the passing Of
the dividend on United States Steel
cOmman stock and the reduction of
that on the preferred stock had been
/ decided upon, induced new selling of
the United States Steel securities. fore
ing the preferred stock more than a
/ point lower and the second bonds near
| ~ "A point Both rallied in the late re-
cOvery of the market.
The bank statement was another dis
couraging factor The loan contrac-
ton amounted to $3.50 zoo. The de-
posit account was further contracted
( by shrinkage Of cash reserves of So
/ 747500, so that while the reserve re-
/ quirement was reduced to the extent
/ of $l,520 425 the surplus suffered TO the
extent of S2,22IO15, bringing it down
[ to S3911.350. A year ago there was
a surplus of SIS, 529 975. and two years
I ago of S14 4S6. 925. The course of the
money market makes a little obscure
the recovery in foreign exchange. 1t
/ is now evident, however, that the ac-
emulation of exchange has in view the
requirements for the payment Of $40
/ 0O000O to the Panama Canal company
I in connection with the settlement of
the canal question. 1T is 70 be noted
also that the value of imports of dry
I goods and merchandise at New York
| this week has risen S1.S0OOOO over that
of last week, while the exports Of grain
for the week are nearly 100000 bush
/ els less than last week.
Review of the Week
! Prices of stocks have turned upward
this week, in spite of some unsettle-
ment al times. Transactions have been
largely in professional hands, and for
the most part devoted 20 covering OF
short contracts put out on the previous
decline The most effective influence
in turning the market was the realiza-
ton of the very favorable position Of
/ the international exchange situation,
/ induced by the publicatiO Of the for
/ eign trade statement for October. With
/ the exception of October of 1900, this
: statement shows an excess value of
! exports over imports greater than in
any previous month Of the cOuntry's
/ history.
/ The rise in value of cotton exports
/ in October of $1S,OO0000 over those for
/ October last year accounted for this.
/ Enormous exports of cotton have con-
tiEued up to the present time, foreign
( consumers being Influenced by the fear
Of another corner IN cotton in this
country. At the present high price of
cotton, it is evident that the market
/ ing of the present crop viii create a
| vast total of credits 10 be liuuidated
. for the United States by foreigners.
/ The declining iron and steel exports
are additional factors to be reckoned
/ with in estimating the future Of the
! exchange market. The heavy REQUIRE
ments thus thrown upon foreign flnan-
/ ces have admonished the financial
/ world that delicate and cOpsiderate
! handling of the situation was required
/ to avoid an upset of foreign money
markets which might affect UnfavOr-
ably the best markets for our pro-
/ ducts.
Gold From Europe.
/ The sum of over $4,000 900 in gold.
/ which has been taken from London for
/ New York. IS not to he supposed to
represent the satisfaction of the trade
/ balance in our favor. The residue is
] accommodating to oUr credit in foreign
/ money markets. The purchase in New
/ York by bankers of exchange bills for
/ investment is a process Of lending by
/ New York 10 foreigners in effect. Com
petenC authorities estimate that the
/ present volume of our Indebtedness to
/ foreigners is less than for many years
] past in contrast to the high level of
J such Indebtedness, of 100000 G00 with
4 in two years past. Much of this iqui-
dalton has been forced during the pain
/ full period Of violent declines in the
stock market. The transformation thus
1 revealed in the money and exchange
/ markets has had an inevita BILE effect
/ on sentiment in the financial world
/ There was a time early in the year
/ when anxiety over the resources of our
/ money market was such that opinions
\ were heard that nothing but q failure
( of crops and the resulting tightening
( of requirements on the money market
I could save the market from a money
panic. On the contrary. normal re-
! Quirements have been met for crop
. purposes as well as emergencies for the
financial troubles at Baltimore. Pitts
| burg and ST. Louis, without disturbing
the tranquility Of the money market.
1 The opinion is now growing that funds
i may become plethOric in New York by
I the turn Of the new year. The con-
1 traction in trade and industry now go
/ ing on is looked TO increase the ac-
I emulation of idle funds at reserve
/ centers- The principal offset TO this
/ prospect is the inclination of railroad
; corporations to issue bonds. large
! be overhanging the market in waiting
/ for the first favorable opportunity. On
I the industrial side attention has been
/ centered on the iron and steel trade
/ and the affairs Of the United States
/ steel corporation. Advices from the
trade show continued uncertainty as to
I customers taking hold at the price re-
/ auctions already effected. and an ex-
/ pectation that the decline in prices is
/ likely to extend
Freight Rate Reduction.
! The reduction in export steel freight
rates accorded by the railroads while
! promising to facilitate the export trade
/ is looked upon as concrete evidence of
/ poor prospects for domestic trade and
( the lower level of prices a which BUSH
ness must be done to secure foreign
4 trade. The effect is looked for I'm rail-
road earnings also. Gross earnings of
railroads, while holding above those
for corresponding periods of last year.
! show a progressive decline in the ratio
/ of increase. For the first six months
| of the year increases in railroad gross
] earnings were at an average rate of
I nearly IA per cent For August the
rate Of increase fell TO s per cent. for
! September to 7 per cent. and for Octo-
cer to a little over per cent. The
rate of increase thus far in Novem Der
| for smaller number Of roads reporting
| is above 6 per cent United States
/ Steel has been affected also by the dis
! continuance Of the process Of CONVEX
sion of preferred stock into second
mortgage bonds. The course Of the
preferred stock has been downward