The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1904-02-21
LITTLE CHANGE
IN CONDITIONS
--4
Stock Market Remains in the
Same Old Rut.
-&
PRESSURE FROM EUROPE
<
REVIEW OF THE TRANSACTIONS
oF THE PAST WEEK.


were very moderate and were well re-
sisted. But once the depression was
overcome all interest in the market abs
ruptly terminated. There seemed to b.
waiting demand for stocks on any
declines but no buyers were at hand
70 follow any advance. The principal
pressure upon the market came from
foreign sources. This was wei alb
sorbe6, and prices were at no time
down TO the London parity. The senti-
mental effect Of the decided upset in
the Paris and Berlin bOurses was very
slight. The severe declines on the
Paris bourse are attributed to financial
needs caused by the shrinkage in Rus
sian securities. which are a poor sale
al the present time, so that necessities
must be met by the sale OF other seCuTi-
ties. The special weakness Of state
funds in Paris might however, be due
70 intimate knowledge of diplomatic at
fairs not available TO other centers.
which would explain its greater sym
pathetic effect on other foreign mar
kets. The favorable bank statement
was a help TO the resistance TO depres-
sion here. The S7.544, 400 Increase in
cash was not unexpected. and is at
south, where the collapse In cotton
speculation has decreased the immedi-
ate need. Some Of the money sent to
Baltimore is believed also to have come
back. The loan decrease is evidence
that corporation borrowings have been
largely supplied out Of the previous
loan expansion. Il is probable also that
the poTceeds Of railroad loans are left
on deposit with the banks pending tbs
need Tor employing the funds, which
are available to the loan market in the
meantime. The market closed about
steady and not far from last night
level.
Review of the Week.
The weeks market for stocks has
been duiier and narrower than for
nearly four years past, Mondays trans
actions falling TO a total Of sales less
than for any day save one since the
summer of 1900. The news of the week
has ng% been favorable to advancing
prices, but the adverse developments
have been almost equally without effect
IN bringing sales upon the market. The
stubborn resistance Of the market TO all
unfavOrable factors has prompted the
professional traders once or twice to at
tempt To advance prices after testing
their ability to deDress them without
success. The occasional upward move
ments here and there were without
news 10 .accoEnt for them and we're
quite evidently due 10 the testing op-
eratious Of traders who are at the end
Of their resources to effect "a sufficient
movement of prices in either direction
10 afford a basis for their daily opera
tons.
The professional operations have
made up almost entirely the market,
of 4srN
evidence of the strong hands in which
the stocks are at present lodged and of
the small speculative position open.
Holders are apparently Indifferent 10
the day-to-day developments. and seem
to be content to hold their property for
more propitious market conditions. The
same spirit is seen in the policy of the
railroad companies TO negotiate tenn
pOr8ry loans at a comparatively high
rate of interest rather than to attempt
10 Issue new securities at a time when
the demand is list,ess and almost stag
uanL At the same time an occasional
selling movement at one point or an
other proves 10 be almost without eff
feet or pFises, giving the impression. In
view Of the naTTOWness of the market
tnat potential support lies behind it
The effect this week has been to cause
a most absolute rightly.
Borrowing by Railroads.
The continued large borrowings by
railroad corporations has been viewed
with mixed sentiments. The con
tinued stability of the money market in
the face of these demands and future
requirements in view has left little
room for apprehension Of any constric-
ton of credits OH that account. The
publication Of the controllers Compila-
riou Of national bank returns as of
January y, makes if evident that the
lean expansion Of the las few months
has been restricted 10 New York banks,
the New York increase for the period
reaching SIS 900. 900. with the aggregate
for the whole country showing only
81, GOO, COCO increase. This showing Of
heavy decrease in the bank loans out
side of New York confirms the belief
that the low rates for money have
been sending idle funds TO New York
banks for deposit rates Of interest. thus
ia measure forcing those institutions to
lind employment Tor their deposits.
This condition deprives the railroad
borrowing Of any menace TO the money
market. To some extent IT has been
viewed as an indication of the intention
TO continue plans OF betterment and
thus insure large expenditures for
material. The railroad borrowing has
another side also which gains impress
siveuess from the steady downward
tendency IN raiI0ad earnings. Wall
street has dwelt much for long time
past on the large proportion Of railroad
earnings which have been diverted TO
bettermeuts and permanent improve
ments and which would not have "a
permanent place in the operating ex-
peuses where they have been figuring
.r7f
Immediate prospect Of reduction of ex-
uendiuures ahead Of dividend claims.
and in some cases they are FOR the
funding Of expenditures already made
end classed ia charges ou earuingc.
Decline in Earnings.
Meantime the declining tendency Of
gross earnings continues, the decline
showing an increasing ratio ever since
last summer. For January and Febru-
AIRY the storm and snow blockades Of
traffic are offered as partial eSplana-
tionS, and the same causes. operating
TO increase the ratio OF operating eX-
penses even in the reduced traffic, made
heavy cuts an the net earnings. The
force 81 the argument that the storm
biockadeS represent only temporary
interruption of traffic which VIII uiti-
mately De moved has been somewhat
weakened Bt the Development OF rae
wars on grain traffic The falling of IN
the demand for money in the country
a large can altogether resssuring de-
velopment ia its bearing upon the rate
of activity Of business in general. The
far eastern war and the threat Of
complications IN tie near east over
hang the market. but are regarded as Of
Importance 10 this market principally
through the possible effects upon
European money markets and the re-
lex effect here. Another i4ilus nee is