The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-01-31
TRADING LIGHT
ON WALL STREET
Market Heavy and Closes al
Lowest Figure,
LITTLE REAL INVESTMENT
DEMAND FOR STOCK LARGELY
SPECULATIVE.
LITTLE REAL INVESTMENT

market moved hesitalingly throughout
1 the session, but closed heavy at prac-
iicaliy the lowest. The early trading
showed a disposition to carry prices up
wards, in spite Of the free selling Of
United States Steel preferred and dis
couraging opinions current over the
/ iron and steel outlook. Prices gave
way after the publication of the bank
statements The item of deposits
reached a new record hgure today, and
I loans anu cash reserves went above
last week record figures. The changes
! in the various items were not fully up
10 last weeks unprecedented records,
hut the increase in loans with last
weeks and one other exception, has
never before been equalled, and the in
crease in deposits never before with
last weeks single exception. The loan
item of the clearing house banks is nov
close to the billiCn dollar mark. The
weeks gain in cash is considerable in
excess of the preliminary estimates,
but was not sufficient 10 make up the
Increased reserve requirement from
the enormous growth in deposits, SO
that the surplus is slightly impaired.
The New York banks are putting large
funds into commercial paper from in
terror points. and large loans have
SO that the rapid growth of the loan
account is regarded as sound and safe.
But there is q growth Of conservat ism
in the feeling about extending credits
for speculative commitments in the
stock market 1t is pointed out that
the increase Of banking reserves last
year came to z halt in the last week of
January, while the loan expansion pro-
Ceeded from that time to Feb. p, TO
the extent Of S70, zoe. 600. From Feb. Z
to March IA last year the New York
banks lost over $4,000. 900 cash, and
the surplus in the same time declined
S27, rs. 500. These conditions and prece-
dents are a force ia causing a halt ia
the speculative movement. Foreign in
fueuces today were slight, but We're Ia
Yorable to higher prices.
There has been a decided falling of
ia the activity Of this weeks stock
market, and the animated operations of
powerful organized party for tie adj
vance have been much less conspicuous.
Measures Of support for prices have
not been altogether abandoned, ana the
pressure of sales to take profits have
not been formidable. The principal in
terest attaching to the market has
been in the effort 20 trace the opera
tions Of the speculative leaders with
the purpose on the part of traders u
follow their operations or TO meet them
as an available basis for their own
counter operations. There has been
Iittle evidence Of any genuine invest
ment demand for securities or Of any
important liquidation. The halt IN the
speculative operations Of the advance
Is attributed primarily to the failure
/ to attract any important outside inter-
est, such as would effect a widespread
distribution Of securities and afford a
broad market for absorption. The
highly professional character Of opera
tons and gne artificial character Of the
advance have awakened X feeling OF
distrust and sceptcism towards il from
the first. The movement has had to
contend this week with several positive
reactionary factors BESIDES That of
the war uncertainty has been some
what in evidence. but is of question
able force. On several days the stock
market resisted the influence of war
depression on foreign exchanges. and
on days when the decline was attribut-
ed nominally 10 the war scare. the
CONNIE dity markets failed to bear out
this hypothesis. cotton continuing to
advance and grain holding back.
or much greater Influence was the de-
cline in confidence over the revival of
the iron and steel industry. This az
huence was directly shown in the weak
ness OF the United States steel securit-
les. but WAS of decisive effect ON general
i sentiment Consultations duriss the
week to bring about an agreement
amongst the southern iTou products
were reported 70 be futile. either far
fixing prices or making a plan for merg-
ing the companies.
Rumors were in peCsisteat circulation
during the week Of a cut in steel rails.
and some Of the important western iur
terssts were outspolSen IN their dissatis-
faation with the present price schedule
on the ground that they Gid not share
in the advantage of the eastern rail
ways from their carrying of steel pre-
ducts as an Offset 10 the high price
paid fer rails The Iron Age was also
frankly pessimIstic over the trade out
IeOk. 4 reaction in the copper market
was regarded as usual as - parallel
significance iU tie iron trade and was
of direct effect upon Amalgamated Con-
per, in which an active speculation was
in progress.
The events of the week had the ef-
feet OF reviving discussion on the sub
iect Of methods Of promotion and or
gaBizataOn OF corporations, and the SEN
lti1aentaI effect was not favorable TO the
marRet The tragical tCunination Of
the prosecution and the career of Whit
aker Wright in England was made the
text Of mOralizing in the press and in
Wall street circles. which was not cal
euiated 10 dissipate any current doubts
and suspicious Of methods of speeula-
tive leadership. An influence Of the
same kind was exerted by the action Of
the stock exchange authorities in strik-
ing from TIE list OF securities quoted
on the exchange those Of an industrial
corporation. The published details Of
TIE efforts to effect a compromise of
the embittered dispute OF the parties
to The shipbldiding organization were
of additional weight in their eHect upon
the sent mont thus aroused. Reports
of net earnings Of railroads Tor Decen-
her published during the week were not
calculated 10 fosts Pr q speculation Gor
the advance Their influence was mod
Grated To a degree by the inclusion of
the favorable Union Pacific statement
and the coal carriers in the returns
But the Atchison statement, showing
the growth Of operating expenses for
the first time overcoming the gain in
gross earnings with resulting decline
in net earnings, gave q strong impress
sion of similar forces at work ina the
railroad field as a whole. \ hardening
rate for time loans served as q warning
that the period OF piiing up Of cash
reserves in he New York banks is
coming to its normal conclusion promis-
Ing a limit 90 eShe possibility of enor-
nous loan expansion at the rate which
has been IN progress By the New York
banks since the beginning Of the year.
The bond market mas shown some
sympathy with the reactionary ten
dency Of sticks and business has 9e-
ciined III volume Z. s. - and old 4s
have .declired Ia and the &c coupon
have advanced L. per cens on sal .luf-
La. fl1a- r.-.-.l-