The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1903-04-05
SPECTATORS
DISAPPOINTED
Stocks Went Down From the
Start in Wall Street.
REVIEW Of The PAST WEEK
INFLUENCE OF RAILROADS
UPON THE SITUATION.

" 0Aa III % 4 y "A = A0As
New York. April 4-Today's stock
market was too narrow 20 have any
great significance. The opening de-
cline expressed the disappointment of
those who bought yesterday on the ru-
NOR that the pool holdings Of Southern
Pacific had been taken on the market
by private agreement Yesterday s
furry among the shorts on account OF
this rumor conveyed an impressive IN
bmation Of the possible effect Of such
n settlement. should &c suddenly ue-
velOp. and awakened a spirit OF eau
ton on the part of the bears.
There was some support offered tt7
market when 1T was seen that Jhe sem
ing Dressure was light. Wabash pre-
ferred especially was lifted point ga
the strength of reports that there Mas
a good prospect of an adjustment OF ne
labor dispute on that system. a HNe'S
selline. movement followed the appear
ance Of the bank statement showing
decrease I'm surplus reserve OF ei'i03'
075. bringing that item down 10 e.
150.S25. This showing was Whony uu7
to the fall in cash, the loan item siio"
ing a nominaH decrease OF less IlaIl /"
million dollars under the average sys-
tenn, in spite of the very lasge assie
gate changes in loans known 10 MY
taken place during the week ITO me
April 1 settlements.
AS compared with an estimated de-
crease i'm cash Of a million and hail.
the statement shows that the banks
have lost during the week 4o,o-4,o0V-
There is indubitable evidence InaI lllla
result was due 20 the fact that the
trust companies are Withdrawing OF
Withholding deposits from the banks 10
build ~ the reserves In their own
vaults, TO conform with the clearing
house rule that they shall be able 20
show a cash reserve amounting 20 III
pei. cent of their deposits on june L
There seems also to have been an out
go of gold to Canada during the week
more nearly equal 20 million dollars
than TO the S250,000 reported. The sell
ing Induced by the bank statement was
again met by support based on q con-
fdence that factors are working
toward Improvement of the local money
situation, in spite Of the weak bank
returns. The rally seemed to have
spent its force before the close, which
was about steady.
Resume Of the Week.
The most notable fact regarding this
weeks stock market has been its pro
gressive dizziness, leading 20 the low
level of daily transactions FOR me year
toward the end of the week. TIE gen
eraI tone has been one of depression.
although there was temporarily relieI
on Tuesday by a brief upward reac-
ton This was partly due TO the eX-
pectation that April disbursement or
dividends and interest would relieve
the tightness Of the money market ana
result in some buying OF stocks. DuI 70
published interview with j. l.. Morgan
was Of even greater effect with the pro-
fessiOnal trading element. Mr.. MOT
CANS tone of depreciation Of prevalent
pessimism regarding financial affairs
was expected 10 have faT-TeaChlng IN
nupnCe with the investment classes,
but beyond the professional buying IN
tended to anticipate such Investment
demand on Tuesday there was no ap-
/ probable effect I'm the stock market.
Even the short interest seemed 10 De
soon satisfied. disappointing the hopes
of those who have looked for sabstan-
tial aid for a rally from this element
when prices finally turned upward. Mr..
! Morgan's expressed faith in the sound
ness of the rece~t capital issues which
have glutted The market and proved
practically unmarketabie. has had some
/ reassuring effect beyond question, al
though his conclusions have not been
accepted without reservation in bank
ing and financial circles.
Faith On the sOundness Of the new Sc
curities on the part OF those holding
them may be inferred from their being
withheld from sale on weak market,
while other standard securities are
| liquidated to provide resources Tor hoIo-
/ ing the new issues. Some Of the re-
/ cent persistent selling of high grade
railroad stocks is attributed by COM
mon consent TO this purpose TO con-
serve holdings OF new bond and stock
/ Issues. This process, however, amounts
/ to a demonstration that the holding Of
I the railroad stocks on investment basis
I of from 4 or under to AZ per cent is
not an attraction 90 cope with the
money market on an interest basis Of
over 8 per cent and no definite pros
pect of an Improvement in the money
I facilities Stocks which have been held
/ high on account Of promise Of rights
/ 20 stockholders TO subsctibe to new IS
/ sues below market prices are particu-
lsrly affected by the prevailing ten
/ dency to realize on an sucn rights as
promptly as possible without depending
on the doubtful facilities Of the money
market for taking up these future sub
/ scriptions.
! The showing of net earnings by the
railroads also arOuses the suspicion
+ that some Of the recent selling of high
grade stocks has been for inside ac-
count and based upon knowledge OF
, the course Of earnings. The Pennsyl-
/ vania report Of earnings for Fe ruary,
showing a decrease, made an A Ipres-
sion on the market.
Railroad influence.
1 The expense of operating this sys-
I tenn in February was more than twice
as much as the increase i'm gross re-
/ turns from traffic I'm view of the
I forthcoming increase I'm outstanding
and dividend requirements by one
! third, the influence Of this showing on
! sentiment is now difficult 10 Under
/ stand The market for the stock
! shows no indication that this discOur-
/ agement is allayed by the argument
I that the intended outlay of nearly
/ $780, 600 600 i'm proceeds of the new
I stock issue is calculated 10 increase
/ the earning power of that property in
l proportion to the increased dividend
/ requirements. The Importance at
\ tached TO the rising course Of labor
| cost is evidenced by the quick re-
! Spouse I'm the stock market TO reports
\ OF demands for increased wages on diff
] fnrant railroad systems The dissOlu-