The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-02-15

LITTLE ACTION
IN WALL STREET
Market Conditions Are Almost
Stagnant.
REVIEW OF THE PAST WEEK
SPECULAToRS CAN'T UNDER
STAND PUBLIC TIMIDIrY.

not until the last half-hour of the
session that the first sale in either
Sugar or Manhattan was recorded. Up
to that time there had been only one
o. two transactions in United States
Steel
The movement of prices in such
market can have little significance of
negative character The selling pres
sure which was notable yesterday was
relaxed today and there was even
some evidence of support here and
there, and especially in the Gould group
IN which Wabash preferred was lifted
nearly a point. General Electric rose
further on alleged expectations of
benefits to stockholders to aecrHe from
he purchase of the STANLEY Electric
company, perhaps by new stock sub
scription rights. American Smelling
advanced an additional ia With irsI.-
nations that the Improvement in the
silver market was to the advantage of
the company
The signing of the protocols for
the submission of the Venezuelan cor
troversy TO The Hague arbitration court
was cited as a reason for some of the
buying. The liquidation of the Fries
seemed to be checked and there we're
dealings in the new convertible bonds
on the curb (when issued) at 90, COM
pared with the proposed issue price
to stockholders of S71R. Prices receded
a fraction on the appearance Of The
bank statement but the market stead /
led again. The loan increase of Sill
274, 800 is not comparative with the last
week or other wears. 1t is. believed
that there is some borrowing for the
purpose of repaying foreign obliga-
lions. which can now be done to ad-
vantage. The surplus of Sl5,529,6l5
compares with S13 $50 at this time
10 fyNn o
Week Opened Well.
After a squirt of activity and strength
on Monday the stock market fell back
again into condition of apathy ana
lethargy This was accepted as new
demonstration of the futility of the Ell
forts of speculative combinations and
pools to awaken interest in stocks on
the part of the outside public. These
elements had in their favor the con-
tinued ease of money conditions, especi-
aIly the introduction into the senate
of the Aldrich bill for liberalizing pro-
visions for gomernment deposits with
national banks in preventing strln-
gency in the money markets during the /
coming fall. The somnolent state OF
speculation is a puzzle 70 the protes-
sional element in view OF the apparent
promise for future prosperous condl-
tions. . e+-
The importance attached to the Al
drich bill in current financial discus
sion probably offers key 20 one OF the
reasons of the prevailing hesitation IN
the stock market. 1t is now generally
recognized that the money market
passed through a crisis last fall which
had many dangerous elements in It
The step taken by. the secretary of the
treasury in accepting state and munic1-
! pal bonds as SECURITY for government
deposits was a potent factor IN aVerIlns
9TH r9f
! ing a lookup of surplus government
revenues in the treasury grows ip dir
ffcuItye every year with the growing
scarcity and augmented price of gov
eminent bonds on which all measures
of relief depend under the law me
device OF purchasing government bonds
Eat a premium in the open market mas
come toAcause a displacement of bonds
deposited TO secure circulation, thus
operating to contract the circulation at
one point in the proportion it IS tx
banded at another. It is with great
| relief therefore that the financial world
sees the prospect of the deposit of gov
eminent surplus funds with banks at
i1h per cent interest on the security OF
state. municipal and approved railroad
bonds.
The removal of inhibition against de-
posit of customs receipts with the
banks is also calculated to be of spe-
ciaI benefit to New York banks, as the
! bulk of the customs are payable at tnls
port. The making available of the
bonds to be issued for construction Cf
the Panama canal for purposes of Sc
curity for bank notes and government
deposits is an additional factor for ex-
! pansion of circulation
Some Adverse Factors.
But this promise of alienation OF
possible money stringency again this
| fall may not more than Offset other
| factors on the opposite side. For one
| thing. the payment. of $40 600 900 to the
Panama Canal company shareholders
and of $4,000, 600 to the Colombian gov
Eernment must be provided for in case
of the passage of the Panama canal
! bill. 1t is not considered probable that
a bond issue will be authorized for
| this purpose in view of the large cur
rent revenue surplus enjoyed by the
| government. The accumulation of an
additional cash balance in the United
States treasury in preparation for shese
payments or a withdrawal of govern
Inent deposits with the banks is there
f! fore indicated.
The adoption this week of the le-
quirement by the New York clearing
house for, additional cash reserves by
| trust companies clearing through that
! institution calls attention 10 another
phase of the hnancial Sltua ton last
| fall. The pressure for credits and the
withdrawal of deposits for circulation,
| il will be remembered, kept the clear
/ ing house banks near 20 their legal re-
1 serve limits and materially expanded
| the loan accounts of interior banking
| institutions and, presumably. of he
] trust companies. Practically the only
| reserve maintained by the trust COM
panies was on deposit with the clearing
/ house banks, and the reserve of those
| institutions therefore constituted the
ultimate reserve for meeting demand
requirements not only from their own
deposftors, but those of the trust COM
panies and banks away from the re-
serve centers. This weeks action by
the clearing house formally condemns
the demands of last fan as unsound.
Clearing Houses New Rule.
A conformity with the new require
ments calls for the accumulation of
per cent of deposits in cash by the
trust companies by June l next. ~
per cent by Feb. 1 next and 10 per
cent ty June 1. 1904. II is reported
bv authorities in the exchange mar
| ket that many millions of obligations
to foreign lenders have been paid off
since Jan. 1, this correcting the over
extension of credits in that direction
which left the local money market
vulnerable to calls. There Is every
evidence in the bond department Of