The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-05-06
SHORT SESSION,
GREAT ACTIVITY
Final Prices Showed Insignifi-
cant Net Changes at
the Close.
C0ALERS HAD ADVANTAGE
DEALINGS IN READING ON ENOR-
NOUS SCALE.

New York. May 5.-Prices fluctuated
feverishIy in the very active trading of
the short session OF the stock market to-
day. Final prices, however showed in
significant net changes as a rule except
i'm the group of coalers and some of the
minor specialties. The anthracite car
riers and the natural advantage Of the
news that a settlement of the labor dis
pute with the miners was in sight and
that "A strike would be averted. Dealings
IN Reading were on an enormous scale and
with COnsderabl sympathetic effect on
the general market This influence was
not sufficient however, to hold the gem
erat list in face of some Of the other fac
tors which came into play. The early
weakness in St. Paul and New York Cen
tral was traceable 70 the developments in
the struggle for railroad rate regulation.
The movement in St. Paul was regarded
rs symptOmatic of the state Of mind Of
the financial groups most directly con-
the Standard OH company The selling
or New York Central was connected with
the finding of an indictment for rebating.
The unSetting effect Of these declines
was generally overcome when Reading
began TO shoot upward. An irregular
tone started after the appearance of the
bank statement Operators of stocks have
& keen appreciation of the enormous eX-
tent TO which credits in the stock market
have been scaled down during the week.
That the average of the loans of the
hanks should have been increased for the
week s. 900 400 made a striking exhibit of
the heavy requirements which make the
withdrawal of credits from the stock
market necessary to afford means for
meeting them.
\ decline in the cash holdings of S4S2O.-
geo was in contrast with preliminary esti-
mates OF a gain Of from 100000 10 over
100000. Withdrawals of cash by the
trust companies to build up their reserves
In compliance with the new state law
were given the responsibility for part Of
the discrepancy. There was \ similar dis
Crepancv in last weeks bank statement
which would bring the averages over into
this week, the loss in the cash last week
being less than 100000. when the known
movements OF money had indicated a loss
of nearly S1,O00O00. Furthermore, some or
the large gold engagements OF the latter
part of the week owing to delayed ac-
counting i'm the sub-treasuFy opera tons
have not figured in this weeks bank
statement. The effect of the statement on
the market nevertheless was unfavOra bic
and the closing was irregular in spite OF
the renewed advance at the last in the
cOalers.
Total sales of bonds. par value, 81 Pos 900.
Review Of the Week
n There has been drastic liquidation of
stock effectng during the week and 6reat
: damage resulted TO quoted values and an
enormous shrinkage Of the basis of cred
its. The movement was accompanied at
times by disorder and confusion owing 10
the urgency OF the operators to sell and
the huge volume OF some OF the indvid-
nal holdings thrown upon the market.
There We're evidences of the relief afford
ed by the process before the week was
tlnued nervous and anxious owing TO
fears that the necessary liquidation had
not been completed. The larger part of
the Liquidation was attributed TO over
extended Individual spectators and TO
market pools and organizations which
had undertaken to hold the market for
special stocks and groups by accepting
offerings at the market or even attempt
ing TO bid up prices in face of the large
selling, thus becoming overloaded beyond
their capacity to carry. The long i'm
munity of these important elements in
the speculative situation from the OTdi-
nary eXigeucies Of the money market dur
ing the StringenCy OF December and
March seems to have bene due to the am
pie resources with which they provided
themselves in time loans running beyond
the period of normal strain in the money
supplies. II is supposed that many of
the time loans so secured have been ma
turing recently and the borrowers were
left in a vulnerable position by the un-
willingness OF operators to renew. An
other factor was the unstable conditions
manifest in the stock market in securi-
ties which figured in the collateral for
loans The requirements OF the May !
settlements complicated the situation and
the speculative pools had no other re-
source but to lquidate their stock hold
ings. On Wednesday the sales Of stocks
rose to nearly 2.5O0000 shares, and the
crash Of prices was so violent 10 Gre
ate alarm. AS is not unusual, however.
IN a speculative crisis. the parOXysm
proved the elimination for the time being
and the subsequent trading showed the
relief afforded by the operation.