The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-07-22
NOPE REVIVED IN
STOCK MARKET
Favorable Bank Statement
Caused Better Feeling
Among Spectators.
SHARP ADVANCE IN PRICES
ONLY PART OF THE GAIN RE
TANNED.
SHARP ADVANCE IN PRICES

: New York. July 21-The bank state
ment showed that there had been sub
stantial ground for the hopes of a strong
bank return which lay at the bottom Of
: yesterdays upward movement of stocks
and the improved feeling over the money
outlook. But the sources of the added
strength of the banking position We're OBJ
scure. An estimate of s6OO0,OOO cash
gain based or known movements of
money was realized by almost double
that amount Commentators were per
picked to find an explanation and were
| driven back upon the old assumption OF
operations with trust companies allied
with ths banks to account for this great
increase in cash. The So 1890 loan in
crease was taken as an intimatlon or
stock market needs ana gave point lc
some OF the weeks rumOrS of large Dor
rowing for account of interests closely
related to some Of the great railroads
whose stocks have figured in the week 8
revived strength. Quotations of short
time loans, although nominal on a Satur-
Cay, We're substantially reduced today, the
bid rate for sixty days falling TO 80 per
cent. with offerings at 4 per cent A
good effect is looked for on the money
market from the deposits Of Panama
canal bond subscriptions which are Of
fered by the secretary OF the treasury.
Hopes are entertained also of securing
part of next week $4,000. 600 gold arrivals
expected in London MOney-lenderS are
inclined to look Tor easier money rates IN
consequence. Foreign exchange rates,
hpWeVre, were advanced sharply with pos
sseible effect upon the New York command
~ the London gold supply 1t appeared
nat the most of the speculative buying
Abased on the favorable bank statement
ind been anticipated and prices advanced
for only half an hour. After that they
lost ground and the demand was insult
ficient after the bank statement TO alb
sorb the traders profit-takins The. clos
inc fsstsac f11r xrrff IA
early gains retained
Total sales of bonds, par value, 1851, 900
Review of the Week.
The pressure of liquidation was lifted
from the market again THIS week ana the
movement of prices left TO the devices OF
the professional traders almost altogeth-
er. This movement reflected an extreme
" uncertain frame of mind on their part,
prices backing and filling continually, but
with an average tendency upward. IL
was the commonly accepted opinion that
the buying came to large extent from
the uncovered short interest and any ma
tertal rise in the level of prices led to "a
marked subsistence of the buying. with
out however. any notable increase of the
selling pressure.
was more confident and this was the
most substantial factor in the better tone
of the stock market, and also operated 10
give play TO some Of the influences from
Money or can ruled decidedly easy and
there was some ultimate effect also on
the rates for time loans for the shorter
periods This was the normal effect of
the passing of the July settlement period
and between-seasons period In the active
demand for money in circulation. But
the firm maintenance of the rate for time
loans for six months, carrying over the
end of the year, was a measure of the so
licitude over the facilities at command
for getting through the crop moving sea-
| son. The restraint upon the demand for
stocks even with the depressing influence
removed Of immediate money necessities
was thus accounted for. Government OPP
erations played an important part in the
weeks money market and their course
gave rise to confidence that help. rather
than detriment TO the money situation
was the result.
Large disbursements were made by the
treasury department on account of mail
transportation and other contracts, and
also for pensions, and these helped 10 Off
set the preparations for the return of
Sl0O0000O of government deposits called
for the 10Th inst. Offers were made of
the redepOsit of the government funds
with banks subscribing 10 the Panama
canal bonds 10 the extent of one-third of
the subscriptions, and his also helped TO
ease the strain of the withdrawal of de-
posts secured by state and municipal
bonds IL was assumed also that there
would be important increase of bank note
issue through the wider supply of govern
Inent bonds available for that purpose.
Gold was secured for New York in LoIi-
don early in the week and engagements
were also made in Australia for shipment
no San Francisco without carrying the
xpreign exchange rate away from the
level of profit on gold imports. This kept
8live a belief that next weeks large ar
rivals of gold in London, estimated at 3d.
OOO.O0O. would yield further supplies for
The New York market