The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-09-18
SHARP REACTION
IN WALL STREET
UnfavOrabIe Bank Statement
and Fear of Crop Damage.
ST. PAUL LED THE DECLINE
REVIEW OF CONDITIONS DUR
ING THE WEEK.
ST. PAUL LED THE DECLINE

ING THE WEEK.
Kew York, Sept. IL-Prices Of stocks
underwent a sharp reaction again today
under the combined influence of an I'M
favorable bank statement and apprehen-
sion Of crop damage, The holiday IN the
London market was also a factor. me
news regarding the crops was not DIS
couraging. warmer weather DelnB inc
rule. The grain markets were reacuoh-
AIRY, but the highly speculative cOhal-
tons in those markets made wan street
somewhat suspicious OF them Is IeIi-
able index Of real conditions. nc SELF
ing of stocks was more due 70 Tears
of possible developments regarding the
crops during the Sunday interval not
now foreseen. St. Paul was a leader OF
the decline but the other grangers ana
Pacifics were not far behind.
The support of United States Steel pre-
ferred proved futile. The further Sie4iz,-
GOO loan expansion disclosed by the bank
statement disappointed any expectation
that the weeks liquidation in the stock
market was reducing that Item It's IN
crease is attributed by bankers TO IN
terror borrowings for crop moving Dur
poses The interior demand is also re-
sponsible. Of course. for the further SIS
$50 500 Shrinkage in the cash item. Tue
net result is decline of $.OS5.lW IN the
surplus. resulting in the banks admon-
ishng crcumspection in the treatment OF
the money situation. Total sales OF bonds
par value $,955,0O0.
Review of the Week.
The complexion of the stock market
has been decidedly mixed during the last
week On dealings which rose 10 over
million shares a day, large selnng 10
realize has come on the market which
has been opposed by sturdy support
causing effective recoTerles at times
New points of aggressive strength have
also beeen developed. The market of the
earlier portion of the week succumbed
genraily to the pressure on It. and II
was in the latter period that resistance
TO the decline developed. Free realizing
was expected in view of the proportions
of the previous advance and the lack or
new incidents TO extend il. But the re
action was aggravated by a number OF
uufaV Orable developments which caused
uneasiness as to the stability of values
The most important and effective OF
these was the deterioration of the crops
Last Saturdays government crop re-
port OF conditions on Sept. ] showed such
heavy decline in condition Of wheat
since the previous report as to give large
influence TO the constantly appearing es-
Inmates Of a crop much lower than the
governments figures for the first of the
month indicated. The development of a
cold wave and the occurrence of light
frOsts in the crop regions of the west
added 70 the fears of spectators. and
the violent speculation in progress in the
grain markets exaggerated the effect OF
Developments regarding the crops. As
is usual in highly speculative markets.
the forecasts of the frost effects largely
exceeded the actually. and this gave
room for some reactionary effect, both
in the grain and stock markets. But
the recovery in the grsngers proved mod
crate. leaving il clear that the out
come Of the crops is still potent fac
tor in the securities market Reports
from western railroad officials demon
Strated that however favorable the ulti-
mate result may be- the present anX-
tety is having a real influence on az
fairs in the crop region by Inducing con-
sentative courses in business and the
Withholding Of orders for future con-
sumption. Disappointment was eX-
pressed by the railroad officials over
the offerings Of merchandise for ship
ment westward. which was not devel-
oping as rapidly as had been expected
the week before. The grain movement,
however. was expanding at a satisfac-
tory rate. and the movement of cotton
warranted confidence in the values Of
the cotton carriers.
Reliance on Cotton Crop.
This group in fact played a conspicu-
Gus part in the later movements toward
recovery i'm the market. but their move
meuts were so stimulated by manipula-
ton as to lose in sympathetic effect on
the rest of the market Great reliance
is placed on the cotton crop to con-
serve the level of our export trade for
the coming year, and the growth of APP
prehensiOn over the corn crop has the
effect Of EXCHANGING the Importance at
tached 70 the cotton crop The foreign
trade return for August showed the value
of wheat exports Shrunk to insignificant
proportions. with no prospect of Improve
mcnt in the existing condition Of that
crop. Even the corn exports were bare
ly maintained at last years unsatisfac-
tory level. thus disappointing the homes
Of growth in the foreign demand FOR
our corn as a consequence of the short
age of wheat. The foreign trade state
ment displayed a gratifying expansion
in the value of exported manufactures.
and this WAS cited as factor in the
great strength developed in the United
states Steel stocks. The explanations
for this movement were somewhat mea-
ger and were not found i'm reports of con-
ditlonS in the trade or in the views OF
trade authorities on the outlook. 4 very
large outstanding short interest in these
stocks was suspected as an element in
their advance. The large demand for the
trunk line railroad stocks was associ-
5ted with the strength OF the steel stocks
But their movement was accompanied by
many runners whose failure of cOnfir-
nation threw tho movement open 10 sus-
picion of manipulation. Thus, IL was re-
ported that Pennsylvania was to secure
control of Southern railway and OF Atch-
ison: that Erie had obtained the new
Cincinnati, Hamilton & Dayton and Pere
Marquette combination and would in
clude Toledo. St. Louis d Western I'm
the acquisition. and that the Could
PENNSYLVANIA dispute had been settled
Conditions in the money market led to
an advance in interest rates for all class
cs OF loans, and this was an adverse
influence on speculative buying although
the higher rates Of interest asked still
remain far from arduous. The rate Of
Withdrawal of cash TO the interior gives
warning that the demand for crop NOV
ing purposes will be fully up 10 the
average, with a likelihood that they may
exceed It. owing to the high prices for
commodities. This decline will continue
FOR some time yet. The strength of EN-
Fopean money centers at present and the
softncss OF the sterling exchange market
point the probable path OF relief from
any threatened stringency.
The bond market has shown some nm
settlement in sympathy with stock.
L. s. Is have advanced L. and the
Ss coupon. Is. while the old As have adj
Nanced a per cent on call during the
week.
GRAIN AND PROVISIONS.
thicagO. Sept DENOMINATION of ex
celient weather conditions knocked tho
Iast prop from under the wheat market
loosy' Precipitating prices cents below
!Tsterday final quotations. The market
ttoSfu practically Al the lotNpef NJ ina 81