The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-10-09

! financial field. The weekly mercantile
| reviews were cheerful to a degree that
went far to corroborate the growing
| belief. in substantial business revival
and the expansion of the weeks bank
| clearings the country over was addi-
| tiOnal for this view The reduction in
surplus reserves TO 1855, 900 brings
that item below thai for the cores
! ponding period last year for the first
time this season. the figures for last
year having been 1857, 125.
Total sales of bonds, par value, ST.,
T75. 900.
Review of the Week.
Speculative excitement has been
largely in evidence during the week
and violent price movements have re-
suited from the curious activity of the
trading. With the progress of the week
it became clearer that very large dis
tribution of speculative holdings had
been achieved and the reactionary ten
dency awakened suspicious that TIE
powerful operators who had been
churning up the market i'm the course
of their campaign has disposed of large
holdings and secured their profits. SUCH
being the case the efforts to stimulate
a further advance in prices might be
expected TO be discontinued and il was
even feared that the forces which had
made for the rise might turn their eff
forts towards the side of reaction and
seek profit on the short side as well
as secure an opportunity to get-back
their holdings at a lower price level.
Tie suspicious attitude of large ele-
ment amongst the professional opera
tors was aggravated by the TaSk of
confirmation of most of the rumorS
which put prices up. An advance in
prices based on advance knowledge Is
likely TO be well held until the knOwl-
edge becomes public property, when
some selling to take profits usually
causes a reaction. Many Of the IG-
mors recently prevalent have passed
out OF consideration without any con-
firmation, and the extravagant charac-
ter of many of these rumors have
served to arouse distrust. Those Of the
past week have continued to deal prin-
cipally with the transeOntinental rail
road situation and have pointed to u
workout of a comprehensive harmOni-
Zation of control by a settlement OF
the Northern Securities contest. St.
Paul was the center of the excitement
from the opening on Monday morning
when the semi-annual dividend of 81
per cent was deducted from the stock
The cheap appearance thus given to
tie stock was supposed 10 help an q
would require too much space to de-
tail all the rumors that swere given
more or less cFedence as to the part
this company was TO play in the sup
posed settlement. But it was notice.
able that other railroads which were
to share in the arrangements. although
they were actively dealt in were max
ing inconspicuous advances. The enor-
nous dealings in United States pre-
4
Sertion that the corporation was b1y-
ing the stock for conversion into he
second mortgage bonds. thus reducing
the standing charge by per cent on
the capital concerned. This assertion
met with official disclaimers like many
of the others in circulation. But willie
the action of the market thus continued
under a degree of distrust and sCsp;-
cion the scope Of the movement and
the breadth of the absorption made is
impression and held the underto1e
firm.
Heavy Selling of Shorts.
Much was heard of the closing out of
very heavy lines of short contracts
which had been obstinately held from
a very early period of the present pro-
lOnged advance in prices. After the
prolonged stock market decline of last
that decline was herald of industrial
and business and reaction which would
permeate the whole country and threat
en- our whole fabric of credit, including
the banking structures. 1t is only with
in a few weeks that the passing of this
danger and the revival Of business con-
idence has been distinctly recognized.
There is an element in the stock mar
ket which maintains that the conf
dence has heen exaggerated and the
stock market advance due to pure ma
nipulation.
A persistence in this view would have
added to the severity Of the punish
ment of such an element in redeeming
the contracts based on that assump-
ton.
These factors. have all failed of their
effects on markets. Crop estimates Of
the week materially expanded and con-
fidence is increased that the crops are
practically made. The revival in the
consumption of iron and steel. the re-
covery in railroad earnings and the re-
sumption of some of their plans of inn
provements which were laid aside from
the necessity for retrenchment have
helped to confirm the sentiment that
the danger of industrial depression was
passed. The great accumulation of idle
reserves in New, York banks offered
abundant facilities for campaign in
securities. and the manner in which
loans have been taken out. as revealed
by the comparative statistics, for the
past year, leaves little doubt that those
facilities have been awaited OF for that
purpose. Enormous requirements for
new capital issues have already been
contracted nv RAILROAD and i0duSfr.ia I
ing a market for themselves to explain
the countenance given 10 the revival in