The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-05-20
NOT GOOD WEEK
FOR THE TRADERS
Wall Street Market Business
Nearly All in Profess
sional Hands.
DAY WAS ONE OF
UNUSUAL STAGNATI0N
Volume Of Business Shrinks
and Range Of Prices Is
Narrowed.

day, and the sluggish drift Of prices was
OF no consequence. Tho staGnation Of
the trading. however, Is significant OF the
growing conviction OF the .unpropitious
outlook for any large speculative at
tempts In the present stock market
The oppressive weather was RESPONSE
Die 10 some extent for a small attend
ance on the part OF the brokers, but
their early departure from the financial
district was with the assurance that no
important operations In the market were
In sight Prices showed q dropping ten
aency from the inanition Of the market,
but hardened 10 some extent before the
closing and left fnal prices Insignificant
ly changed from last night.
Tho most important change In the
bank statement was In the last loan Item
The Slo,0O0,00 loan expansion Is clearly
due 10 otner cause than stock market
borrowing and the Pennsylvania note is
sue is given credit for the increase. AL
though over $4,000 O00 OF gold has been
received by incoming steamers this week.
the United States Treasury had claims
upon tho banks for an equivalent amount
on account OF Government funds ad-
Vanced TO the banks at the time they en-
gagged the gold under pledge OF return of
Government deposits when the gold ar
rived. The cash Item OF the banks there
week.
The passage by the Senate of the rail-
way rate bill was without apparent In
1uence on the market. An explanation
offered for the torpid state OF the bond
market and the dropping tendency OF
prices there is the elimination of large
absorptiye power on the part OF the lie
Insurance companies, which played an
important part early in the bond market.
II supposed that some liquidation on the
part of the fire insurance companies on
account OF San Francisco losses Is an In
fuence In the bond market also. These
conditions arc believed to help to account
for the resort by tho Pennsylvania COM
pany 10 It's note Issue in preference to a
bond issue at this time and to be supple
mentary 10 the actual money condition In
their influence on the bond market
Total sales of bonds, par value, Ss,775.
Operations In stocks this week have
lepsed into professional hands to a largo
extent. The volume of transactions has
shrunk and the range of fluctuations has
narrowed. rejecting decline In specula-
tive interest and mood of hesitation
and uncertainty over the outlook for
values. This Is In accordance With prece-
dent after such a market as that follow
ing the San Francisco earthquake and
fro, and represents a stage In the nor
NAL readjustment of market conditions
to tho problem presented by the losses in
CURED in that calamity. The natural
forces towards the first rebound from
tho acute depression following tho dis
aster have been working themselves out
and the market Is loft to the influence Of
new developments.
The recovery In prices has lessened the
attraction Of stock from an investment
standpoint, and that class OF demand,
which WAS q subs tantial factor In check
Ing the fall, has diminished at the higher
levels, The uncovered short interest has
been largely reduced as tho recovery in
prices has forced the bear interest to
cover, and the market lacks that potential
support The action OF the market has
Indicated the persistence Of attempts to
extend the advance on the part OF pro-
fesslonal parties and organizations and
to inaugurate new campaigns on the long
side OF the market. But there is little
evidence of any large general ground fol-
lowing attracted for these movements and
the uncertain fluctuations from day to
day in the stocks thus operated in are
tho reflection Of the varying positions
taken by tho professional element The
copper group and the anthracite car
riers have been the fayorites In the ef-
forts to revive speculative interest The
general list In the meantime has moved
sluggishly and some stocks have shown
positive depression.
While the stock market has been af-
fected mostly by mechanical conditions,
the outgrowth OF previous movements
some of tho developments OF the week
have bcen important. The future course
of the money, especially, has come I'm for
renewed consideration The sale OF the
Pennsylvania company of s5O0OO,NOO OF
eighteen months notes on a basis of In
| terest cost TO tho company estimated at
something over I per cent formed the
text for much discussion
Temporary borrowings at that rate Of
Interest by 80 strong corporation is
taken to show inability owing to the
present unpropitlous conditions to find
market for the more permanent capital
issues which 1t Is assumed Will follow In
due time TO redeem tho temporary loan
As very largo capital Issues remain to
be ahsorved In the securities market to
provide means for the extensive enlarge
ments and extensions In contemplation by
oil sorts OF corporations. a bad impress
sion is created OF tho chance OF success
for these offerings Terms OF sale which
would attrnct demand would be likely
ties to provide means for taking up the
now. Or, the money market Is likely to
be encumbered with other temporary
loans Of the Same kind es that of tho
tion needs and defer tho offerings OF
more permanent capital issues.
The situation is complicated. by q, vol
umo OF bonds recently issued which re-
| main IN first hands of syndcates and
| bankers with large loans from tho banks
and trust companies for carrying them.
The payment of such q rate of Interest
by the Pennsylvania company for eight
cen months seems 10 belle tho seeming
easo of tho present money market which
offers money rates below per cent for
time loans UP to ELK months and below
per cent for call loans The resumption
In force OF the currency movement to
week adds influence TO the money ques-
| tion Calculations that preparations had
been completed for the resumption OF
| banking In San Francisco provo TO be
Tho probability OF further relief by gold
imports is again cnnvassed In the pres
cnce of those new conditions. As TO this
something depends upon tho extent to
which foreign insurance companies have
| already remitted funds to this country
for payment OF San Francisco losses.
Banking opinion differs on this point from
the Wow that recent gold imports repre-
sented tho completion OF a large proper
tion OF such remlttanoes to the contrary.
extreme, which holds that the bulk OF
these transfers remains to be made
Skilled financial authorities abroad also
were widely at variance az to this coun-
| try's present situation in the interna-
| tional exchange,
Tho uncertainties OF tho money sItua-
| tion during the coming season thus indl-
| Gated arc held to account mainly for the
| halt In the speculation Advices OF busi-
] ncss and Industrial conditions continue
favorable Railroad earnings show q
| sustained Improvement over previous
years, Purchases OF steel rails for the
| next year arc on scale which affords
| convincing index Of tho soundness Of tho
| iron and steel situation. Weather condf-
| tions arc not wholly satisfactory for tho
| yriptsr wheat cr0D br,f tho r.st,lfIr,- f,-r,,