The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-11-05
SURPRISE FOR
THE BROKERS
Bank Statement for Once Agreed
With the Estimate.
PRICES IMMEDIATELY FELL
HASTY PROFIT TAKING CAUSED
A RALLY.

New York, Nov 1.-The bank state
ment today for the first time in many
weeks agreed with preliminary esti-
mates based on the known movement
OF money and on other factors. For
that reason, apparently as much as for
any other, it came as a shock TO specu-
lative sentiment and caused a break IN
prices o. stocks. The forces at work
for the depletion of bank reserves We're
notorious during the week, and the eX-
cited speculation in stocks gave an OBJ
vious indication OF expansion OF loans,
but operators have come To rely on
modified bank statement 10 save the
appearance OF conditions. Yesterdays
rise IN call money rates TO 652 per cent
was a confirmation OF the situation.
The banking situation. however. was
almost ignored today up to the time of
the appearance of the weekly state
ment on the stock market tape.
The response in the market was i'm
mediate, and the closing tone was
easier after a slight rally caused by
hasty profit-taklng on the part OF the
bears in the board room. The surplus
reserve of the banks is cut down by
the weeks operations $l0O76,650, bring
ing it to "a meagre S2,S54275.
The heavy interior requirements for
currency have reduced the cash in the
banks some S7,405, 1O0 thus effectually
dissipating the speculative hope that
the turn in the interior currency move
ment had set in in favor Of New York.
Yesterday : sharp rise in open mar
ket discounts at Berlin was followed to-
day by-an advance I'm the official rate
OF discount of the Imperial Bank of
s.eaf-F nv -
cent and there was a sharp decline i'm
sterling exchange at Berlin. further
marking the pressure on that money
market. The advance in the bank rate
in the middle OF the bank week in it.
. self marks an unusual situation.
Sterling exchange and the money
markets in New York We're nominal, as
usual on "A Saturday but the tone was
firm and there was a growing eXpecta-
ton that gold would go out next week
Today's early stock market showed
violent speculative. advances in q num-
be ROT comparatively obscure special
ties. Reading was under pressure and
sold at one time four points below last
night, closing only a fraction above the
lowest The loan expansion by the
banks of SlG,453,0O0 was attributed for
the most part to the speculation of the
week in the stock market, and bankers
made little disguise of their satisfac-
ton with the check administered to the
stock market movement. Total sales
of bonds. par value, s., 10000
Review OF the Week.
The wavering and irregular upward
movement of prices of stocks this week
has been responsive to the develop
ment of events in Russia. For the most
part however tho worlds markets
have reflected a feeling of relief and
announcement over the promise of a
settlement Of Russian discomfort and
the hope that orde~ and the resumption
OF industrial activities win be the re-
suit 1t Is believed the economic side
OF The future naturally with which the
world ) markets concern themselves
and the most direct reflection in our
GWn affairs has been through the wheat
markets. The price of wheat was in
clined to Yield with some promise Of
the opening of transportation in ltus-
sia and the release of grain sh 'Dmeuts
Tor EXPORT The effect on markets Tor
securities and money was transmitted
for the most part through the Paris
markets, owing To the enormous hold
1ngS OF French capitalists in Russian
government and industrial securities
The manifesto by the emperor Of RUS
STA, abdicating autocratic powers
caused 4 QUICK relaxation IN the ten
sion OF foreign money markets ewing
to the belief that The precautionary
piling NJ OF bank reserves in Paris
would be discontinued. The rise in
sterling exchange at Paris was the
most immediate indication of this ;en-
dency. and was accompanied by q run.
ming on Of foreign exchange I New
York. This had the effect OF viDing
out the margin of profit on shipments
of gold from New York to Paris and
aVerted the expected large outward
movement % cold. This was AN esro-
cially stimulating factor on 3pacula~
lion here owing to the importance still
attached 10 the money outlook. The
later recovery in exchange. however.
and the renewed decline i'm the storing
rate at Paris bringing no the question
Of gold exports again was MOI of much
effect in checking the speculative &C
tivity which had develOued i'm the stock
market. The recovery in exchange was
attributed To the beginning of REMIT
tances of the Ja~anese funds on tle,
Dosit in New York as much as To the
continued uncertainty over the outcome
Of the agitation ia Russia.
United States IS declined "a per cent
on call for the week