The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-09-10
BEAR PARTY PUT
OUT SHORT LINES
Confidence of Friday in the Market
Somewhat Impaired.
CLOSE WAS UNSETTLED
REVIEW OF CONDITIONS FOR
THE WEEK.

New York. Sept 9.-The restored conf
dence over the money market which
caused the rally IN stocks yesterday was
somewhat impaired again when trading
was resumed today. An active bear party
put out short lines freely in various quar-
tiers of the market There was some COW
ering from this source after the bank
statement appeared. but prices eased off
again before the closing. as the radical
changes in the various items of the bank
statement We're not liked. in spite of the
small impairment of the surplus which
was made TO show as q let ra.lIit
The bank statement in fact showed q
much easier loss of cash than the most
liberal estimates of the preliminary COM
putatlons. The highest of these had run
10 SOOO,OO0. while the decrease shown by
the bank statement runs TO nearly ST.
OV0,OO0. In order to effect me necessary re-
auction IN the deposit item II keep pace
Win WITH TINS heaYy loss OF cash and conserve
the surplus, the clearing house banks lad
marked down the average of me loan
Item for the week no less than $50 237 900.
me decline in deposits thus effected
amounts for the week to 81, 1G5, 100 These
changes are far in excess of the -1duc-
uons made in any previous week in the
history or the clearing house. The larg-
est previous loan reductions for week
was less than SIS 0O0,OJ0 and this occur ed
In the week following the stock exchange
panic in May 1901. The large educ lion
IN reserve requirements caused Hy the
cutting down of deposits restricted The
lnroad uDOn the surplus 90 $6s7 5.5, as
compared with last week. That item now
stands at 81. S31, $50.
The liquidation in the stock market has
been compared with previous periods Of
active liquidation, and the fluctuations in
the money rates have indicated no such
urgency as would be caused BIZ with
draWal Of credits as would be supposed
The trust companies have alone taken
over large loans during the week The
break IN foreign exchange has been due
TO the borrowing of funds in foreign mar
kets. 1t is reported that some western
institutions have also placed some i1rge
loans in New York this week, and the up
ward course of New York exchange at
Chicago bears out this suppOsitiOn. The
comparative tranquility of the call money
market is supposed to be due in large
measure to shifting of stock market Dor
rowing from call loans into tine loans.
The market closed unsettled and irregu-
lar and very dull Total sales OF tones,
par value, s1,O45,OO0
Review of the Week.
Prices have moved irregularly during
the week and the tone of the market has
been unsettled under the additional hqui-
datiOn induced by the narrowing re-
sources of the money market
The attention OF operators in stock was
concentrated on the money market con-
d1tiOnS and there was no development
IN any other direction TO account COR the
is made Of the reacuOnaTy tendency in
the copper metal market after the Ere
ViOus upward flight. The price of the
metal was marked down several times,
and assertions found currency that The
great production of the metal was over
taking consumption and leading TO some
accumulation of stocks. The effect of
this was aggravated by the sensational
Nominations against the market from pro-
fesslonal quarters, in which some prestig &c
has been built up by the success of pre-
yiOus attacks. The banking situation so
far is developing along normal lines. But
er uncertainty exists. owing 10 the ques-
ton of the amount of demand for credits
which would be made by the newly paci-
fled powers. The belief that Russia 5 re
lief from an indemnity obligation would
restrict its borrowing facilities mas
given way TO the suppOsitiOn that
a very large Russian loan is to be forth
coming. The continued accumulation of
gold at Paris is the warrant for this sup
position. News from Toxic brings the
opinion from financial authorities that the
government may meet with difficulties
If obliged to issue further domestic loans,
sources of other money markets. Besides
japanese funds on deposit in New YORK
have been steadily RENTED to London.
where they may figure IN the Bank of
England deposits as reserve against al
ditiOnal note issues by the Bank of Japan.
Bonds have been affected by the efforts
TO iduidate securities, bHt in much less
degree than stocks.
T. 5. IS advanced 1s the IS and old As
a. and the new As q per cent on call Tor
the week.