The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-02-14
PRICES OPENED
A TRIFLE HIGHER
&-
Taking of Profits Sent Market
the Other Way.
&
SESSION LASTED TWO HOURS
4~
CONDITIONS OF THE PAST WEEK
REVIEWED.
SESSION LASTED TWO HOURS

thursday and Monday did not attract
more than a small attendance Of brok-
ers and members, and the trading was
listless and unimDortant. The opening
level was higher To conform TO the
parity of London prices. which had
been lifted slightly yesterday during
the holiday mere. The small room
traders attempted Go take the day s
profits OF the bank statement, with the
result of carrying prices back To about
the level Of Thursdays prices Al
though the preliminary estimates 81
the currency movement through regu-
Jar channels indicated a cash increase
Of about S2.00e.000, the decrease Of 81
663, SOC shown by the bank statement
did not cause great surprise, as there
was knowledge OF large shipments TO
Baltimore, which did not figure in the
estimates. The nominal increase in
the loans was less than was expected,
and would be considered a negatively
favorable factor.
Review of the Week.
The stock market had to face with
the opening of the week the unexpected
calamity OF the great condagratiOn at
Baltimore and the outbreak OF war
between Russia and Japan. which lat
ter event was not unexpected by the
best information opinion. That It
was not wholly discounted. however,
was obvious from the motion caused tu
foreign security markets and especial
y among state funds. notably at Paris.
This concurrence of harmful events
was d staggering blow to sentiment,
and grave fears were felt of the con-
sequences These fears have thus far
failed in a striking degree of Teaiiza-
tion. The sharp declines Of Monday
we're almost made up on Tuesday.
showing that a considerable part of
the selling even on that day was for
the short account, which was hastily
covered on Tuesday under evidence
that there was no urgent pressure OF
liquidation which promised opportunity
for buying in stocks at d lower level
Il is highly probable that some meas
IRE Of powerful support by large cap
italists and bankers played a part iii
I2esday's rally. 1t was perception Of
this fact and the fear that the object
of this support was TO afford 81 more
profitable basis for necessary 1iquida-
tion that induced the renewed decline
Of the latter market. But acute ap-
pT1 tension was quoted, and confidence
was felt that the market would not be
subjected TO the kind If forced liquid
alton which was at first feared as a
suffered in the Baltimore fire
Restored to Quieter Tone.
The scaling down of the first esti-
mates of those losses had an important
part in restoring the market TO a uufet-
~ tone The composure with which
these conditions were met We're a strik-
ing demonstration OF the great growth
of the COUntry's resources since the
time when similar calamities threw
financial circles into decentralization and
Drecipitated the stock market into
panic. The gravity of the requirements
to be met by the heavy destruction of
property values has not lost its force,
as is shown by the renewed but more
orderly fail in prices which has fol-
lowed the recovery from he first spas
mOdlc drop. II forced and urgent liqui-
dalton can be escaped ss a result of
the heavy requirements on the great in
surauce companies IL IS realized that
widespread extension Of credits WAS
necessary to accomplish this result. If
insurance cons paufeS are 10 be saved
from the necessity of selling their in
vcstment holdings at a sacrifice. they
must resort TO the money market To
borrow on this collateral. and it is ex-
pected that they VIII call in loans they
have placed with other borrowers.
The continuation of credits To the
stricken business community of Balti-
more comes into consideration also.
These unforeseen needs reinforce the
doubts which have been caused for
some time past regarding the money
outlook on account Of The heavy cor
poTation requirements which are con
stautly appearing and the effect also
OF the payment Cor the Panama canal.
which Il engaging more immediate con-
sideratiOn The hardening Of money
4 I ~
loans to come added to the force of this
consideration. Feeling on the subject
was we'll illustrated by the special
weakness of railroad stocks III cOuuee-
ton with announcements or even vague
Tum0Ts Of note issues
Unfavorable Railway Returns.
This tendency TO increase obligations
ahead of present stock issues meets in
creased disfavor by reason of the UNI
favorable showing of current railroad
earnings The returns Of weekly gross
earnings are uniformly lower than fOS
the corresponding periods OF last year
This is explained in some part By the
snow and storm obstruction TO traffic
and is accompanied by reports OF con-
gestion of freight and blOckades with
the utmost efforts are insufficient to
break. This condition seems to justify
the plans Tor continued expenditure for
Improvement ana increase or facilities
which are the objects of the large rail-
road borrowings. The decline fin neI
earnings caused by the general rise I'm
cost of opera ti0n-of railroads is another
ground for doubt regarding the policy
Of mourning new obligations. The pur-
suit of this policy, however, and the
demand thus insured for material has
had its effect on the-stocks uf various
railroad equipment corporations. and
slso upon United states steel The
show of strength III those stocks has
been partly on the belief that terms
had been agreed upon for the placing
Of steel rail orders 90 meet the views
of the railroad corporations which have
hitherto RETAINED from making pur-
chases. Stress has been laid also upon
the large cunsumptiVe requirements for
steel products which VIII result from
rebuilding operations 1T Baltimore. II
has developed also that shc fire losses
10 be met by foreign insurance compa-
MES is having an appreciate effect ON
the foreign exchange markets. pr0ul3s-
ing timely addition To the supply Of
exchange IN connection with the pro-
vision 10 be made for meeting the Pan
anna canal payment.
Business in bonds has been less, the
placing of the railroad notes and %
various new bond issues serving 10 d.
vert the investment deEand from eX-
isting issues
United states Is coupon have declined
4 per cent on call during the week.
Pacific Coast Grain.
san Francisco. Feb. I8-Wneat-F frmer:
Nay, -: December is9iss
Barley Primer; May. 1f9, December
1.9fs.