The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-05-22
LAST HOUR WAS
VERY ANIMATED
&
Market Strongest at Close of
the Week.
SUDDEN UPWARD MOVEMENT
OUTLOOK FOR RAILWAY TRAP
FIC IS POOR.
SUDDEN UPWARD MOVEMENT

New York. May 2l.-The last hour OF
the weeks trading i'm stocks was the
most animated and the strongest Of the
whole Week The days moderate gains
were sufficient 10 decide the average
for the week. movement ON the side of
gains. The bank statement proved am
agreeable surprise and impelled a live
81 buying movement which lifted prices
smaTtiy. Tile movement was sudden
ana had not spread far in the list
when the end of the session put an end
to DO. The closing was strong and
near the top level The rather spas
mOdfc movement fu one or two stocks
indicated some distress on the part OF
surprised shorts. An linking of the
heavy reduction I'm the loan item got
abroad before the publication of the
bank statement and started the buying
movement. The loan reduction Us pref
ty clearly due 70 the resort Of the eS-
change market 20 the selling of long
bills the proceeds of which have been
length6led presumably displacIng loans
with the banks. The process involves
borrowing I'm London TO meet the sterl-
ing bills when they mature there. IL IS
evident, therefore, that the export of
gold is no longer profitable as "a simple
exchange operation, and the early ter
minati0u of the outward movement OF
gold is believed to be thus foreshad-
owed. The limitation of the cash de-
crease of the banks TO S7.0S5. 300 I'm the
week of the record exports of Sl5.J00.006
in gold is convincing evidence of the
effective 0ffsetting factors 20 the drain
which is Ira operation.
The net result lis 10 leave surplus re-
serve of the banks uuimpaired, Total
sales of bonds par value $9s0.0oo,
Outlook Not Bright.
The listess drift of prices of stocks
IS the index off the fOrmless state OF
speculative sentiment over the outlook
for values. The outflow of gold may
be accounted for by special causes pti-
mariiy The Panama canal payment ANA
the American subscriptions to the Jap
auese and Russian loans. IT is now
freely conceded that the proceeds of
the subscriptions are to be RENTED m
fun to London. These three items
would call for about SSo.0959o5 In the
exchange market AT the same time
a reserve decline in the value of eX-
ports of grain and cotton for several
months reduced the available supply Of
commercial exchange, throwing the re-
mifters back on the necessity OF eN-
porting gold Our supply or gold was
really redundant at that time. Japan
had made payments for war material
and supplies for this country oy direct
SHIPMENTS of gold to san Francisco
suppIv OF domestic and KlOndike pro-
duction Of gold DO is estimated that the
total supply of gold In the country mas
been unimpaired, i'm spite OF The Hood
of gold exported from New York, IL
seems uroha BILE that the net results Of
the net sold export movement VIII
prove small. It is pointed out that Jne
large reduction i'm government deposits
with. banks has released a correspond
fnz amount of government bonds Whlcu
were used 10 secure the deposits ana
has caused a fan i'm the market price.
The cheaper price for the bonds WIdens
the profits 10 the banks on bank note
issues and tends TO stimulate the issue
off blank notes iu spite Of diminished
demands of the circulation.
Review Of the Week,
Railroad traffic officials are generally
aereed that the outlook for a revival
of traffic is not bright before the fan,
and reports have been received or eN-
teuf{ve plans for retrenchment Dy the
railroads 10 offset the losses ln gross
earnings. Reports of railroad earnings
AS thew. come 60 hand fully bear out the
opinions expressed of the declining
tendency Of earnings and the effect mas
been depressing on railroad STOCKS, es-
nacfalfv those whose dividends seem
10 have their integrity threatened ps
the heavy declines i'm earnings. AdFlces
Tran the iron and steel trade agree iu
autipfBating a quiet season i'm the trade.
rTha cr0D news of the week has tailed
10 afford amy support for stocks
Tha baud market was almost equally
71lf and sluggish with stocks United
states - IS and the old As have de-
s1fred a per cent ON cau during the
week..