The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-05-21
DEPRESSION IN
STOCK MARKET
Good Start, But Prices Failed to
Hold Out.
LOSSES SHOWN AT CLOSE
LIQUIDATION CONTINUES ON A
LARGE SCALE.
LOSSES SHOWN AT CLOSE

New York, May 20.-Today's stock
market started off rather hopefully, but
before the end Of the two hours ses-
sion depression had closed in again
and the closing was weak at consider
able net losses throughout The sup
ply OF stock from abroad, which had
beeen a feature recently, was inter
Tupted today by the occurrence Of "a
holiday in London. Opening orders to
buy for professional traders who had
sold the market short yesterday were
therefore effective IN lifting prices. ad-
VaHCes running TO "A point or more
in many Of the prominent market lead
crs- There was no effective demand
following this advance and by the end
Of the first hour Iquida ting sales be
gan to dTibble on the market
The current increased in force and
after the appearance of the bank state
ment became somewhat precipitate-
The bank showing formed practically
the only item of news which was of in
flUenCe in the trading The shTinkage
I'm the cash reserve of S4,759. 500 proved
somewhat less than the preliminary
estimates Attention Centered on the
loan item, which was expanded up
wards of $50 600 900. An addition to
deposits which expanded the reserve
requirement by almost as much as the
shTinkagc in cash. resulted in an in
road Of over 50 per cent on the surplus
reserve. bringing 1t down to SS,219.9T5.
Upwards OF SIC. 000 OGO of the loan ex-
pansioH was made by a single insti-
tuition and is attributed largely to the
underwriting subscriptions to the $780,
600, 900 Pennsylvania. bond issue. 80 per
cent Of which was paid in during the
week past. ON Thursday of the COM
ing week the final instalIment of the
Japanese loan allotment viii call for
some 500. 000 900. Sterling exchange
made a further advance today and it
IS evident that preparations are being
made for the remittances on the Jap
anese loan subscription
It is not believed by banking author
tiles that these remittanCes can be
completed without a large export of
gold. unless the rates for money here
should rise TO a level to offer an at
traction for the leaving of the pro-
CeedS OF the loan in New York for use
in the money market. In spite of the
great ease Of money up to the present
time. these conditions had their effect
IN inducing a renewal of speculative
liquidation The mercantile agencies
also reported some interruption to re-
tail demand for merchandise, owing TO
the backward season and a cautious
spirit I'm the demand for future require
ments-
Total sales Of bonds jpar value, 81
795, 600.
Review of the Week.
Depressing Influences have aCCUmu-
lated on the stock market this week.
resulting in a sharp break in prices
after the middle of the week. Tn the
early part of the week the movement
of prices was very uncertain and fUC-
tUated constantly. with occasional
shows of considerable strength. The
market was almost wholly professional
and narrow. the total sales for Tues
day being the lowest Of the year. The
weekly review of iron and steel pub
Iished or Wednesday afternoon by the
leading trade authority centered attcn-
ton on the lUll in that trade. and this
was the principal influence in the break
in prices which came afterwards. The
response of the stock market TO con
ditionS i'm iron and steel trade empha-
sized only more the Importance at
tached to that trade as an index of
the Industrial and business outlook at
large. The strong effect produced is
due to the Inference as to what the fu-
ture i'm the trade may be rather than
TO actual conditions reported.
The arrest Of the demand for pig
iron in itself might signify little. as
the accumulation OF stocks which has
commenced is Vet SO small in spite
Of the prodigious output that "a few
DAYS Of the present rate Of c0usump-
tion would serve to exhaust stocks. But
distrust Is felt of the cOusUmptive pow
err owing to the fear that much Of the
demand for future requirements. which
has been very confident while the
market remained sta BILE may Dc cur
tailed with the prospect of yielding
prices. Delayed building operations OF
account of weather conditions and a
pause in demand for railroad materials
pending the formation Of the harvr-r=
are given as causes of the luIL Ia f.ur
and steel. which. II Is hoped. NAV prove
temporary, but speculative sentiment
had taken alarm aid has refused To be
rea SSuTed-
\ contributory cause To- the depl.
sion of the iron and steel stocks Das
the character If the discussion fr
stock market circles OH the auuouuca.
determination OF IN. administration [.
purchase material for the Panama cas-
nal dread where IL can ID, done more
chelply than i'm the Unite. - Itrs. II
was argued that this pu~jJ,H Was .-lI
Culated TO precI9iJatc the Who'll. aUes
ton 81 tariff revision especially as I
bears OF iron and steel duties ana Fs.l.
liable 10 be made a supplement tO 1El
AGITATION for government control u
railroad rates and of corporations D.
general