The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-05-28
CAUTIOUS SPIRIT
IN WALL STREET
London Settlement Viewed With
Some Apprehension.
POOR BANK STATEMENT
is CONSIDERABLE CONTRACTION
OF LOANS.

New York. May 27.-Today's stock
market was Of no Importance. The
sluggish downward movement was re-
traced before the end of the day. Next
weeks London stock exchange settle
ment is viewed with some apprehension
on account of the unfavoTable position
of an extensive account in Americans.
The belief that the lonE-cNpected ma
Val battle is near at hand had its part
in inducing d spirit Of caution inc
considerable contraction of loans dis
closed by the bank statement was
something of a surprise, in view of the
weeks heavy transactions, including
the Japanese loan payment and SUB
sCTiptiOns to the new American Snelt-
eTS Securities stocks It IS explained
that arrangement has been made for
the leaving on deposit of the Sbu-uJuNoo
paid in on the subscriptions to the
Pennsylvania convertible bonds. the
greater part I'm the New York banks
and the rest in Philadelphia banks
These deposits viii be available for use
in the call loan market The proceeds
of the japanese loan are at the dispO-
sition of the japanese government, and
the Information of the immediate use
to be made of them is withheld,
Meantime the amount is still in New
York banks The extreme ease of
money in foreign markets offers no in
ducemeut for the transfer Of this fund
abroad. and. indeed, foreign funds are
Offering IN the New York money mar
ket. The days changes in stocks are
Insignificant and the close was stag
nant-
The bond market generally was ir-
ocular. Total sales, par value, 81,
Sos, 600.
Review Of the Week.
After desuItOry resistance to depres-
sion stocks made a brisk mid-week re
covery and then drifted downward on
the Disappointing response from buy
ers at the recovered level of prices.
Reports of restored harmony in the
northwestern railroad field gave the
impulse to the recovery. and that sub
ject has played a large part in forming
sentiment toward the market through
out It was believed that the threat
ened trouble in that field lay at the
bottom of the pressure upon the mar
ket, and the announcement that tTOu-
bic had been aveTted caused a CORE
spending degree Of alarm amongst the
considerable uncovered short interest.
The most notable result Of the weeks
events has been to bring home to the
financial public for the first time the
gravity of the situation that existed at
one time amongst the controlling in
tereStS in the various railroad systems
in the northwest Il was fully realized
that the illeEality of the Northern Sc
cGrttles company and its dissolution
LETT some peTpIeNinE problems to be
TeadJUSted which that project had been
designed TO solve The failure Of Union
Paci1iC's attempt To continue its con-
troll Of Northern Pacific and a voice
In that of tire Burlington was clearly
understood. leaving the old disputes
over territory and traffic open for
fresh settled.
But prices Of the railroad stocks con-
Cerned were marked bUOyautIy upward
for months. leaving an uubridIed spec
UlatiOn i'm the whole market on the
constant unauthorized assurances that
new and more extensive plans Of bar-
mOniOus adjustment were working out
to take the place of the defeated
Northern Securities plan The official
admissions row seem TO establish that
the actual conditions then existing
were those of armed hostility with i'm
miuent danger of rate wars that would
have threatened exhaustion of re-
sources and OF extension Of lines into
new competitive territory that would
have caused an entirely new basis of
competition for traffic and Of earning
power The intimation now given Of
an agreement TO refrain from this cost
" warfare is cause for substantial
satisfaction to securities holders. But
the course Of the market during the
period of hazard awakeuS wonder at
the degree of misinfOTmati0n and mis-
placed confidence on which IL was
based The realization Of the periIs
escaped and the VagUeUesS of the in
formation even now given of the terms
and the extent Of the agreement leave
spirit Of caution and apprehension.
Bonds have been duh. but prires
We're comparatively well Sustained
United states bonds were all unchanged
on ral1 for the week