The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-11-27
SECURITIES ARE
BEING OlGESTED
The Result of Higher Prices and
Increased Speculation.
3EMAND FOR UNION PACIFIC
HEAVY TRADING IN THE STEEL
ISSUES.

New York. Nov 26.-Initial transact
lions la today's stock market were
made up largely Of United States Steel
issues, but before the end of the brief
session business increased IL volume
and the market 5roadened until il en-
braceG a great number OF standard
stocks. At the outset large blocks Of
Steel common and preferred came out
at fractional advances and the bonds
also gained. There were slight advances
In such specialties as Colorado Fuel,
Pressed Steel Car and American Loco
motive. Amaigamated Copper respond
ed 10 buying by houses supposed TO
represent Boston interests. The list
fiuctuated for a brief period. out short
~ before the publication of the bank
statement a heavy buying movement
set in. There was a lively demand for
Union Pacific, Southern Pacific Mis-
sour Pacific. Southern Railway. Rock
Island, Louisville & Nashville, Penn
sylVania and others in the same group.
London bought Union Pacific and
Southern Pacific and the extensive pur-
chases of Erie were probably for the
account of the professional short in
tCrcsts.
The market remained active to the
close and prices OF many issues were
then the best OF the day
The bank statement was regarded as
favorable in the sense that the loan
decrease as well as the cash loss
showed better than had been expected.
An inspection of the daily report of
the associated banks reflects the recent
sale Of city bonds. Three banks which
Il,
bonds-the National Bank Of Com
merce. Chase National bank and Fourth
National bank, reported debit balances
OF more thar S21 900 000 while the Ma
tional City bank city depository had
a credit OF over IS, 500. COO. New high
prices were registered bN the steel is
sues. Atchison made 4 slight gain in
spite of its poor October report Great
Northern preferred advanced points,
making a 11-point gain IL two days.
Total bond sales today. par value, So
02e.0 00
Review of the Week
The most striking feature of the week
was the heavy dealings, at Increasingly
high prices. Of the securities of the
United States Steel corporation. 1t is
generally believed that some plan in
vOlving the futher conversion of Steel
preferred into the sinking fund per
cent bond is contemplated Evidence
accumulated that the iron and steel
trade are steadily improving. Some #
the other highly speculative issues
more than held their gains Of the past
week The offerings OF new issues of
securities as exemplified I'm the sale of
blocks i'm the Union Pacific, Rock ISL
and, Chicago Burlington & Quincy.
Pennsylvania MarquGtte refunding
bonds and other less important issues
revived discussion Of refunding plaIs
long dormant and Of consultations Of
groups of subsidiary companies of some
of the great railroad systems for con-
yenience of financial policy.
This marks clearly the passing OF the
era Of indigestion IN the securities mar
lIet which occasioned borrowings Of
enormous amounts by Pennsylvania,
New York Central and other powerful
corporations during the course of last
year and for which high rates Of in
teTest was paid. These Borrowings were
made necessary 10 keep alive projects
already entered upon and which would
nave involved heavy losses by INTERRUPT
tiUns. The ready sale CT these securi-
ties is perhaps the best evidence Of the
revival Of confidence and of the alb
sorptive power of the market which
is entitled to the great encouragement
which it occasions. But it viii prob
ably be availed of 10 a large extent to
fund into the long term obligations
many OF the short term high-interes-
obligations Of the character above in
dicated. and which viii hang over the
market for occasional offerings in con-
siderable amounts for a year to come
The effect of such expansion of the
volume Of securities to be marketed
even OF the most highly priced securi-
ties. lies wildly IN the recollection. ever
since the rescue Of the Pennsylvania
stocks offering from practical failure
by the tardy formation of an under
writing syndicate Tire prior claim
which such securities are likely 10 as
sert on the future consideration OF the
market is taken account of by those
who seek developments of the more re-
mote future.
Little Interruption.
The holiday interruption of the week
caused but a slight dimJnitiOn in mar
ket activity. Notwithstanding the long
immunity Of the money market from
the many drains upon the cash supplies,
the rates of interest for the week have
shown that the usual fall influences
are not to be wholly eSca ped. The de
crease of over $50. 600 600 i'm the item of
deposits of other banks reveals the
source of the supply Of stock market
borrowing during the period from Sep
borrowing during the period from
sept. TO Nov. 10. while the lean item
OF the banks was actually contracting
some 500 100000. Although the legal
surplus Of the banks is thus protected
by the trust companies. the effect upon
the ultimate reserves is Of effect on
sentiment and curbs the borrowing dis
~af aflI1
world.
II is noteworthy that tbs bank clear
ings all over the country show an in
crease Of over so per cent compared
with the same week last year The
eager demand Of continental Europe for