The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-04-08
STOCK MARKET
YIELDED GROUND
Moving Cause Was Deficit Below Le-
gal Requirements Shown by
Bank Statement.
SOME SUPPORT OFFERED
BUT THE CLOSING TONE WAS IR-
REGULAR.

New York, April 7.-Today's bank
statement showed the cash reserve Of
the clearing house banks TO be $780,
625 below the legal requirement. The
showing was not a surprise in view Of
the course of the money market this
week and of the report Of the known
movements Of money which made their
appearance yesterday. The cash loss
disclosed by the bank statement of
S7.904. 200 was about equal to the mini
mum estimates of yesterday. The con-
siderable loan expansion of $7,205, 500
occasioned some surprise. While the
stock market of the week has given no
evidence of important liquidation there
it was believed a very large transfer
was going on of credits from the local
banks to interior and foreign lenders.
The stock market yielded ground, but
slowly after the publication Of the bank
statement and from the vantage Of
some early advances. The closing tone
was irregular with evidence of support
here and there.
The last occasion on which the banks
showed a deficit in the surplus reserves
was on Dec. last. It was in the week
following that speculative activity be-
came most pronounced on the stock
exchange. The aggregate sales for the
week rising TO over 1900, 600 shares with
advances of from 4 to 9 points in such
stocks as Union Pacific, Great North
ern preferred, st. Paul and New York
Central, in spite of the continued
strength in the money market which
eliminated in the last week in Deem
Der in the 125 per cent money rate.
The speculative contingent in the mar
ket today were inclined to make much
of the analogy There were many ru-
more current in the stock market also
of large gold enga gements for import
70 be expected next week, following
arrivals in London
Not much countenance was given in
banking circles to the supposition of
large gold shipments to arrive in Lon
don Foreign exchange here was firm
today, although the Saturday market
is nominal and the quoted rates were
considerably above those Of yesterday
Both Paris and Berlin are looked upon
as active competitors for any gold
supply in the London market. German
and Prussian loans to the extent of
$40, 000. 900 are imminent. Estimates of
Sele forthcoming Russian loan vary all
.4sne way from 5000. 900. 900 to $500, 600 OOO
Loans at the stock exchange made on
Friday carry over until Monday so
that the call loan market of today was
merely nominal and offered no light
on the probable course of next weeks
money rate.
Total sales of bonds, par value. ST.
10000
Review of the Week.
Money on call has commanded a
higher rate Of interest at the stock ex-
change this week than in any first
week of April in more than thirty
years past The result has been to
paralyze speculative activity in the
stock market and to chill the spirit
with which the week opened and car
ried prices to a sharp advance on a
larger days business than had been
done for several weeks past. In the
progressive subsistence Of activity dur
ing the following days the higher level
OF prices was yielded only slowly and
irregularly and the speculative COM
mltments which had induced the rise
were maintained with a show of stub
born pertinacitv. The stringency in
money has gained in severity from day
10 day. instead Of gradually relaxing
and has thereby disappointed the cal
culations OF the party which embarked
I'm the speculation last week Interest
and discussion this week have centered
on the money question almost to the
exclusion Of other subjects The i'm
mediate cause of the strfngency is
clearly traceable to the heavy demands
upon the cash reserves Of the banks
Large remittances have been called for
from interior points and from the large
banking ceuters on the eastern sea-
board and transfers have been made
both by the medium Of the sub-treas-
ury and by express. Telegraphic trans
fers 10 San Francisco were recognized
8 a means of remittance to japan of
funds Of that government on deposit
I'm New York. Customs collections have
been large and have made the SUBJ
treasury requirements on the New
York banks Onerous.
The immediate cash outgo from the
banks has been large enough from
these causes to deplete the meager
margin on the surplus reserves and to !
exhaust the supply of loanable funds |
But deeper seated causes are sought
and the principal of these has come to
be generally recognized in the heavy
demands for new capital outlay IN
the last three months. The enormous
new issues of bonds and stocks in that
time have been the subject of constant !
observation and discussion. An effect |
was early produced on the OOnd mar |
ket which became torpid ana slow from
repletion. One effect of this was an alb !
rupt droD in the par value Of new Sc |
curities offered during Marca to $685. !
100000 compared With volume of /
s277. 0,000 during February Another !
effect was the appearance in the mar !
ket of issues of short term notes by /
railroad companies at the high prevail |
ing market rate Of interest ard Sc
cured by the newly authorized bonds |
as collateral The situation in the coal |
trade has also had its influence
Bonds have been dull and heavy in |
tone United States old IS declined Il |
the new As and IS COUPON q, and the |
IS registered Il on call on The week.
Stock Quotations.