The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-02-07
WALL STREET is
RATHER QUIET
Some Apprehension Over the
Subject of Bank Loans.
WAR PROSPECT DISCOUNTED
-&--
FAILURE OF AN ATTEMPT TO
REVIVE SPECULATION.
WAR PROSPECT DISCOUNTED


REVIVE SPECULATION.
New York, Feb. 6-The action Of to-
days stock market indicated a feeling
OF greater apprehension over the sub
5ect Of bank loans than over the i'm
pending war in the far east. Prices re-
bounded from the slight opening de
preston reflected from foreign stock
markets. where the hope Of a peaceful
outcome was practically abandoned.
The borrowing Of $50,0O0000 by the
pennsylvania company induced heavy
selling Of Pennsylvania railroad stocks,
the latter company owning the stock Of
the borrowing corporation This loan
and the fear that it was a prelude TO
similar heavy borrowings by other
railroad corporations caused d marked
impression in sentiment all through
the street. The loss ia Pennsylvania
itself reached 10 at the lowest price Of
the morning. Wabash preferred was
notably firm, ip- spite of the official
disclaimers from Pennsylvania sources
that the loan was to figure in any set
Element of differences with the Wabash.
United States Steel preferred also
weakness elsewhere manifest.
The tone Of the market underwent q
marked change after the issuance OF
the bank statement, and this was
clearly due to the moderate expansion
shown by the loan item, which was rot
large enough TO wipe out the narrow
margin below the billion dollar mark at
which the clearing house loans now
stand. This effect Of the bank stare
ment was made the more clear by the
fact that the reserve Of the banks
showed a decrease of 81, 4S3. 100, where
an increase Of almost equal amount mad
been indicated. The inference drawn
from the small impression made upon
the loan item by the large money mar
ket operations of the week was that
large corporate requirements had al
ready been provided for by the enor-
nous loan expansion since the first OF
the year. PennsylvaEia's rally left its
net loss less than a point and United
States Steel preferred and Wabash
preferred finished the day about
point higher than last night The clos
ing was firm and practically at the best
prices.
Review of the Week.
The course of last weeks stock mar
ket seemed to be accepted by operators
at the beginning of this week as sat
tempt to bring about a speculative re-
vival Of the advance had proved abOr-
tive. The market has declined in ac-
tiyity and no organized efforts have
been any longer apparent TO lift prices
or to attract a general demand The
market has moved sluggishly and ir-
regularly, but the average tendency
has been downward. -5Fhe abandonment
OF the campaign for the rise was partly
a.
OF redundancy of money was passing
by the normal course Of events. But
the market has been oveTshadOWeG
also by several developments and the
BOWS of the week has contained little TO
encourage an upward movement OF
prices. The approach OF the crisis IN
the question Of peace or war between
Russia and Japan has oyerbung al the
speculative markets With growing in
duence. Foreign securities nave been
almost staguant on the eve of the mo-
mentOus decision and the most notable
effect on our own stock markets has
been one OF COustTaiuL upon operations
rather than Of weakness.
The principal speculative activity has
been diverted TO the commodity mar
kets- and the excessive commitments
in those markets have made them fe-
verish and sensitive 10 the slightest
causes. As the threat Of war was rec
ognized as one Of those causes, the
violent fluctuations in the commodity
markets empba sized the impression o.
the possible effect Of way upon securi-
ties. Besides this reflected war infiU-
ence on the commodities. the unstable
condition of values i'm those markets
had its own direct influence in eXcit-
ing uneasness in financial quarters and
IN begetting a conservative spirit.
n--z- =, Fo&Aova
The volatile uprush Of cotton prices
bespoke a elimination OF wild specUla-
ZION there and the collapse during the
week gave warning of extensive specu-
lative losses, such as are bound 10
have some effect in the Wall street
market for quick liquidation from
whatever quarter they may come The
coffee market was another, though
less important source for this kind of
influence. Traffic and industrial re-
T,orts have not. been of kind TO help
IL sustaining values. The returns OF
railroad net earnings for December
compare unfavorably with December of
the preceding year, showing the eff
fects of the growth of operating eX-
penses in nearly all eases. The South
ern Pacific statement was q notable
exception, owing 80 the approach 80
completion of its expensive OUTLAWS for
improvements. which have been COM
ing out ret earnings for q long tiTne
mast. This exception did not benefit
the stock of that company. while the
PENNSYLVANIA showing. from the fail
ing OF in iron and steel traffic. was
used with effect 10 depress that stock.
Ruuogs OF additional new capital is
sues by the Pennsylvania, which We're
al first denied, were also a factor In
causing the decline in that stock. The
returns Of gross earnings FOR the
fourth week in January, so far as re-
ported, show decided falling off from
the corresponding week Of last y-ear.
the average decrease running TO over
Il per cent. Snow obstruction and
had weather conditions are given as
the causes for lighter trahic. These
conditions cause a rise in the uBfav0T-
able net returns TO come.
Business failures FOR the month OF
January were larger than for any
month since May, 1890. with the ex-
ception Of December last past.
Metal Conditions.
Definite news from the iron and steel
trades has been lacking, but rumors
have persisted of a coming cut in
steel rails and of concessions from
schedule prices in other lines OF fn-
ished products. The price Of copper
has yielded in spite ~ Jauusry exports
il. excess Of all previous records. The
announcement of a decision By the
Montana supreme court favorable tu
The right of the AmalgaDated Copper