The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-10-08
Review Of the Wek.

The continued high rate Tor money This
week has suppressed any great specu-
lsJlVe activity In stocks. Early in the
week the money market gave indications
OF relaxation from the strain of the spe-
cial causes which made heavy demand
upon banking resources. and the market
showed evidence OF positive strength
when money rates frightened again ac-
i've attempts 10 advance prices were de-
sisted from and dun resistance to de-
preston took The place of the advance.
Not only here, but IN foreign markets.
tHe course OF money rates has been uu-
ward, ana the conviction has grown that
no immediate return of easy money is TO
De looked for. Bankers express the opiu-
ION that firm money rates may pe looked
Tor Ia the Iuthure for a number of
months. and pronounce such a condition
wholly normal ana due 10 easily under
discouraged from undertaking speculative
campaigns for an advance i'm the face of
IllS OUTLOOK At The same time the high
utSivt or prosperity keeps alive the hone
OF ultimately higher prices and makes
holders OF stock eNCecdiuglv unwilling TO
part with their holdings, Attention has
oeeh almost exclusively Ctutered on
money SIIuf ions. and some of The devel-
opments OF the week have awakened dis
cusslon taking the proportions of the con-
'rof 'Iss b{ reporting an increase in
cash on hand and reduction I'm the loan
account. with resulting benefit to The
margin OF the surplus reserve. the banks
We're At direct variance with the known
movements OF money for the week and
with the heavy loan operations known m
nave been conducted.
The criticism Of the bank statement
eliminated at the annual meeting of the
clearing house on Wednesday when the
president OF Il leading bank denounced
Lhe bank statement as "a farce in puFpOrt-
ing To offer any reliable index Of the ac-
Iuai financial situation. In the same con-
hectlOn WAS sounded note of warning
of the menace of danger of the freedom
or the trust companies from any cash re-
serve requirement In connection with the
heavy loan operations by these iustftu.
lions. The protest of the banks has its
motive OF self-iuteTest which is easily
applicable. The per cent allowed by
banks on trust companies deposits gives
The banks the Use OF those funds only
while interest rates are low. but where
prontabie rates are ruling. as at pres
emit the trust companies draw upon the
banks TO place loans on their own aC-
count To practically the fun amount Of
the resources IT. Is the general supDoSi-
ton that the heavy loan contraction by
taken over almost entirely by trust com
panieS- Certainly there has been no evil
dence OF rea. liquidation in the securities
market The consequence would he that
no real reduction of deposit liabilities has
occurred 20 keep pace with the drain on
bank reserves during that period
All hut small percentage Of trust
company cash Is ou deposit with the
clearing house banks ana figures i'm their
reserve, which therefore constitutes al
most the only reserve against both bank
ana trust company deposits The New
YOr ktrust companies as "a whole reported
20 the superintendent Of banking Of Sen
tember that che deposits subject TO with
draWals uu demand OF SSf3. G54. ! 43 the item
of loans uu coAaJeriai at that date stand
Ing al SEQ. -. 3tirr The cash In their vaults
then was reported &C less than S29H.0,GCo
which WAS less than $50 per cent OF de-
posits liabilities subject 20 demand The
progress OF The legislative INVESTIGATION of
lie Insurance methods H. or some influ-
encc on tine market Disclosures Of i'm
discretion had las part on The skepIicism
The dominance of the money situation has
kent stock market operations ana move
meHts within narrow range and has kept
other considerations IU the back ground
Bonds were well sustained oa a small
demand.
l.. ). new 81 declined Is. the Is coupon.
=. the IS registered. e. and the old As
coupon D per cent on call for the week