The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-02-05
CLOSED WEAK AT
A POINT BELOW
Realizing Sales Too Much For Yes
terday's Market.
HEAVY OUTFLOW OF COLE
MONEY sTRINGENcY THOUGHT
POSSIBLE.

POSSIBLE.
New York. Feb. 4-Realizing sales
for the end OF the week were in consid-
cradle force during the short session of
the stock market today and finally
overcame the market, making the clos
ing weak and a point below last night
for some of the speculative leaders. The
RehnsylVania group and the Pacifics,
Including Missouri Pacific, Were. espec-
tally affected by the profit-taking
There was as little to account tor the
selling as there has been buying the
week so far as any specific news bear
ing on the individual properties was
Concerned.
The bank statement may have con-
tanned a suggestion that the present
redundancy OF money will not continue
Indifferent under the oparotion of forces
at work The weeks outgo of gold in
spite of the inflow from the interior
caused the expected decrease of over
$5,OOOOOO in the cash reserves of the
banks. The loan expansion of 12,443,-
600 lifted the level of deposits and the
reserve requirements at the same time
so as to furnish the net result Of d
shrinkage of 81, l37, 625 in the surplus re-
serve of the banks. The foreign ex-
change market held firmly today and Of
fered no indication that this week s
heavy OutgO of gold will not be dupli-
Gated or exceeded next week Atten-
ton was attracted To the fact, how
ever. that the country sent out last
week 100000 bushels of corn which is
considerably in excess of any other
weeks shipments for over four years
past
As a source of repIenishment for the
exchange market this movement must
be accorded consideration The OSouth-
ern Pacific refunding operation and
yesterdays quick sale of S25 OOO 0OO of
these bonds must be figured with in es-
tiInating the future showing of bank
loans Tbs notable price movements of
the day were in stocks of minor i'm
portance, and the receding tendency
became quite general before the clos
ing The total sales OF bonds, par
value, S2,795, 900.
-N Review of the Week.
There has been an active and aggres-
siVe speculation in stocks this week,
resulting in record prices for a num-
Der OF securities and high prices on this
movement for more. Huge prOfit-tak-
ing and large sales for the short ac-
count have interrupted the rise at times
and induced some considerable reac-
tions. But buying has persisted at all
levels and has been in sufficient volume
TO sweep prices back to a higher level
again and TO drive in the shorts to as
SlSI the recovery with their demand to
cover The movement has been uneven
and irregular, and there has been some
complaint from the class of commission
houses that handle orders of a misceI-
1aneous source that the general public;
MAS -noba large participant in the mar
ket- But the operations in evidence
have been large and confident and am
pie to absorb the selling. The restraint
on the western stocks was in part at
tributed to the influence of the grant
ing of the petition to review the deci-
sion OF the lower court in the Northern
Securities case, which was granted by
the supreme court on Monday.
The refusal of this petition would
have left the way open for an fmme-
date distribution of the assets of the
Northern Securities company on ac-
count of its dissolution and in the be-
lief of Wall street would have been
promptly followed by a new allotment
of control and combination which
would have led to a practical rear
rangement OF the railroad man of the
whole country The granting of the pc
tition has the effect of tying I'D the
Northern Securities Indefinitely, which
was the reason of the considerable spec
ulatiVe realizing of the early part of the
week. Rumors of the decision has per-
Yaded the market for many weeks.
a
influence in the market. Actual hap-
penmgs have not been regarded to any
extent. There was a momentary feeling
OF timidlty over the enormous exports
OF gold to France by Thursdays steam
err. But the apparently inexhaustibIe
resources of the domestic money mar
ketS deprived this factor Of practica I
effect. The heavy shrinkage in value of
cotton exports and the nominal value of
wheat exports makes a large reduction
IN the supply of exchange cornpared
with last year, but the balance of mer-
Chandise export values is still large.
Inc heavy remittanCe6 to foreign
money markets are regarded therefore
as IN the nature of loans due to Paris
needs IN connection with the Russia n
depression TO operations in connection
with the Mexican loan here and to re-
demption of large amounts of Ameri-
can railroad notes held abroad. The
New York money market continues so
largely supplied as to occasion Difficult
" IN hnding employment for the hank
Ing reserves. Large offerings at the
stock exchange keep the call loan rate
down to the limit OF profitable employ
ment and serve as an effective stinlu-
rent 10 the buying Of securities.
Many OF these offer a rate of return
suihclent 10 make the holding of them
with borrowed money profitable. Tho
absorption for Investment also is the
tVSAt Vi eile advantage offered in in
terest and dividend returns i'm securi-
ties on the yield on loans in the money
market. Active discussion and apita-
ton of the proposal for federal investi-
CATION on freight rates was continued
but the subject seemed to have lost it's
erect on the speculative temperament
Bonds were absorbed on a large scale
ana call issues seemed to find "a ready
acceptance United States bonds were
all unchanged on call for the week.
Stock Quotations.