The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-08-20
CAUTIOUS SPIRIT
HAS DEVELOPED
Spectators Not Rushing to the Front
In Wall Street.
Rise IN CALL MONEY RATES
MARKET DECIDEDLY DULL AND
REAcTIoNARY


REAcTIoNARY.
New York, Aug. 19.-The decided
duIlhess of today's stock market was
evidence of the spirit of caution de-
veloped in the minds of operators by
the reactionary tendency developed
yesterday. The hardening of the
rates for money now seems imminent
by reason of the inception of the
movement of currency on q large scale
20 the interior. The abundance of crops
TO be moved and the very active con-
ditiOns OF business, which are them
selves instruments of prosperity. prom
Use an extra requirement on lew York
reserves. The extent or this require
ment can only be measured by its &c
tual development and now that the de-
mand has set in, il is likely TO proceed
steadily 70 the maximum.
The rise, in. the rates for call money
even without reaching the proportions
Of a stringent market, has an almost
inevitable effect on borrowing for
speculative purposes Holders of
stocks on margin at the present high
level of prices are naturally solicitous
therefore Of the Developments. OF the
immediate future. The bank state
ment reflected only a small part of the
expected decrease in cash reserves, but
the weeks activity IN the stock market
resulted in some expansion of the loan
ed account. so that the increase I'm the
deposit item increased the reserve re-
quirement in proportion. The net re-
suit was a shTinkage of about SO, 500, 900
IN the surplus Of the banks.
The news from Portsmouth opened
up the possibility of some important
development in peace negotiations dur
ing the Sunday interval and the great
doubt as TO what its nature might be
added TO the cautious disposition of the
operators.
The closing of the London stock ex-
change subtracted something from the
usual activity of the market. The
small declines of the first hour were
recovered after the appearance of the
bank statement.
The closing was firm. Total sales of
bonds (par value), 81, 600.
Review of the Week
The satisfaction. felt in existing con-
ditions of business and industry and
the general confidence felt In the
promise for future prosperity have re-
suited this week in an appreciabIe
growth in interest in the stock market
and IN an increase of orders. to buy
securities from various new quarters.
The volume of dealings at the stock
exchange has expanded materially and
the course of prices generally has been
upwards The margin Of increase IN
dealings is not to be accented wholly
To account for this new OUTSIDE f',----
est. The medium thus offered for sue
cessful trading in and out of the mar
ket has been taken advantage of by
the professional element to extend their
operations Very large individual
transactions have been the feature Of
the week land concentrated dealings
have been in evidence both in the buy
ing and selling
The favorable news from the grain
crops has supplied the broad under
lying basis for the confidence in the
future Railroad traffic officials re-
port that the effect Of the crop out
look - perceptible in the willingness
of merchants I'm their territories TO
place liberal orders for future con-
sumption Of their customers, causing
an expansion in the freight movement
and constant encroachment on the
available equipment at the disposition
OF the railroads. The railroads are
placing liberal orders for supplies and
the consequence is seen in the activity
or different departments of the iron
and steel industry Demand for steel
rails. plates and structural shapes is
reported.
The cotton crop still gives ground for
anxiety. but the control effected by the
yellow fever situation has been a help
ful factor TO the southern railroads.
The financial community has been
disposed TO draw it's conclusions as TO
the outcome of the peace conference
1rom the behavior OF the securities OF
the governments concerned, and as
they have remained firm in the mar
kets. a peace treaty is believed TO be
probable.
The discouraging tenor of diplomatic
news and opinions has not shaken this
confidence in Wall street
With no actual rise IN the rates Of in
terest, the dubious points in the money
outlook have been Ignored in the stock
market, although the Indications show
that the seasonable demands upon this
center Tor currency to move the croDs
and Tor credits In commercial trausac-
tons VIII be rather greater than loss
by reason of the magnitude Of the croD
out turn, and the great activity in
business which promises to result
Money rates are hardening in the west
and the drain upon New York reserves
is evidently begun.
mere mas been a gopd bond market
Dut nothing like the growth IN demand
that there has been for stocks.
u =. os advanced 4. the IS and old A.
= and the new IS y per cent on call
for the week