The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-01-25
WALL STREET
MARKET DEAD
impossible For the Traders to
Move Prices.
SELLING OF PENNSYLVANIA
FLOATING SUPPLIES OF CAPT
TAI LARGELY DIMINISHED.

+; inducing prices to move still con-
fronted the traders in stocks today, as
it has in increasing degree all through
the week. The Venezuelan difficulty
still has a repressive influence upon
trading and there was some DISPOSE
ton to couple the prompt signing of
the Panama Canal treaty with that
question. Prices hardened, however,
/ after the opening because of the an
rounced decision OF the Washington
authorities that the German action in
Venezuela. did not present a subject
for representation by this government
The weakness of Pennsylvania Was-the
unsettllng influence and led to an active
selling movement. which was only mo-
mentarily checked by the bank state
ment- The closing was easy and with
some quotations at the lowest. The
selling of Pennsylvania seemed to be
due to the news of the borrowing of
$40GO0,OO by that company. The fact
that this loan for six months was ne
gotlated At AZ per cent, compared with
per cent and a liberal commission
paid by the Lake Shore for its $780,
100000 for the Reading purchase. was
pointed at as evidence of a declining
tendency of money rates, but specu-
lative operators were inclined to see
in it rather an evidence that floating
| supplies of capital are likely to be en-
crossed by continued large syndicate
operations, rather than to be left free
for stock market uses. The moderate
lean expansion by the banks, in view
of the Pennsylvania loan operation,
was an agreeable surprise to the trad
ers and prompted the recovery, which
gave away again at the last
Resume of the Week.
The stock market fell into a rut
this week. in which the narrow. and
sluggish fluctuations of prices were
due to the varying operations of the
room traders, whose day to day opera
tiOns have constituted the whole mar
ket- Current comment upon the mar
ket is largely made up Of the con-
lectures made by this class of opera
tors, or the opinions they advance,
which represent their hopes of an in
fiuence that will cause prices to move,
as much as any actual information Of
events. The volume of dealings has
progressively declined to the low level
of the year. With the general public
Indifferent to the stock market and
| with no opportunity therefore to dis
tribute securities to investors, and with
holders equally inclined to sell at the
I present level of prices or at the con-
cessions which the attempt to sell
would require this irregular fluCtua-
ton from day TO day is the normal
condition of the market.
! At such times professional traders on
the floor or in brokers' offices watch
keenIy the development Of events and
the news reports, and endeaVOr to in
terpret the effect these Will have on
the sentiments of real holders of Sc
Curities or the real investment seek
ers for securities, and to anticipate
their action In times of active mar
kets they are thus enabled to realize
profits by knowing beforehand of the
mn Int in1G Of a Mt
markets, when real buyers and sellers
are both idle. there is nothing for the
professional trader to do but to re-
trieve his position and close up his
I commitment, which he is prone to dc
/ on a very narrow movement either in
his favor or against him. The result
is "a market of frequent and narrow
fluctuations. The sufficient eXplana-
ton Of one days movement is that
the previous days was a contrary one
and was found to attract no follow
ing.
Downward Course.
In the present market it has been
shown also that the weeks downward
fluctuations have encountered buying
1 orders placed below the market either
for the purpose of protecting values OF
purposes of accumulation on an eX-
pected downward range Such 4 con-
, dition is sufficient to deter bear traders
from extensive commitments on the
short of the market On the other
hand, upon any advance in prices, buy
ing orders are found TO be Withdrawn
and the market is likely 10 meet selling
orders for the purposes of realizing.
! The rigidity of the market is thus
maintained. Whatever may be the ad-
vantage from a conservative financial
standpoint of the stability thus in
duCed, it is the death speculation. The
Z A,,Tr - Of he
year was. evidently in the hands of the
larger class of operators who demon
strated to their disappointment that
there is not sufficient public interest
in stocks to offer opportunity for
their digestion and the heavy opera tO~s
have become qUiescent for the time
The basis of the Indifference of the
general public to securities must be
) sought deeper and in more genera
causes. The direction to be finally
, taken by prices when the market
energies from its lethargy is still mat
ter of doubt and conflicting opinions.
The apprehension that the country
has reached the high -ide of prosperity
still exists in Wall street The extra
ordinary business activity, causing &c
tual blOckades of freight movements
> in some directions, does not altogether
dispeI this feeling. 1t is offered "a evil
dence that the limit of capacity has
been reached by the railroads, while
the tide of operating expenses and the
wages continue TO rise Many eX-
2 pressed hopes of dividend increases
have been disappointed, and it is feared
: that the railroad companies viii fee
constrained 10 preserve their surplU:
earnings hereafter against future con
tingencies instead of discussing ;heu
; as dividends to shareholders.
Opinions over the foreign trade cut
look are also mixed. The heavy 81
ports of grain are a source OF SrauhCa
ton and give promise Of restoring las
years deficiency in the export move
ment, but the rise of prices here is Z
growing incentive to imports, as shown
= by the monthly statistics on foreign
trade by the treasury bureau. Tn
g | signing of the Panama canal treat!
! ! defines a requirement for transfer o
S SAC, 900 in payment of the F'rencl
5 ! Canal company's claims. The outcome
! Of the foreign exchange situation, tn
{ prospects of the coming years crop
and the working out of the money am
| banking situation for the coming yea
. | are felt TO be of vital Importance TO
the future. The foreign exchange sit
uation is for immediate consideration
3, and has been a repressive factor during
: ! the past week. Some consideration ha
. been given TO the Venezuelan situation
= The request by the secretary of tn
/ | treasury for the resubstitution of gov
: eminent bonds for others as securit
| f0r government deposit has awakene