The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-02-11
STOCK MARKET
DROPPING BACK
Speculative Sentiment Hesitating
and Operators Show Disinclina-
ton to Make Purchases.
LOWER PRICES PREVAIL
BANK STATEMENT MADE POOR
SHOWING.

New York. Feb. 10-Today's dull stock
market was of the same character as
those throughout the week, Hesitating
speculative sentiment and Discrimination
to make large commitments were the
marked features. The excited advances
of yesterday in the Hill railroads gave
place to some reaction today and prices
fell back from the lack of the stimulat-
ing influence of the strength in those
stocks. Some depression was reflected
from the London market owing to a re-
NlVal of apprehension over the outcome
OF the Moroccan conference. The narrow
professional character of the market was
ueIn OnSJraIed BY the demand 10 cover
shorts after the appearance of the poor
bank statement which disclosed the orr
gin OF the early selling Of bear opera
tors. Developments in the banking sit
uatlon indicate substantial ground for
me conservative sprint felt in the stock
The decrease in the surplus reserves of
The banks by about One-half to less than
e6,OO,UOO IS in itself a showing of the mar
row margin for expansion of banking
credits for which the demand continues,
as shown by the weeks increase in the
loan item of 81 So, 100. The decrease in
cash Of $5,297,O00 reflected not only the
known movement OF currency for the
week, but the carry-OYer from the state
ment OF the week before which failed to
snow the full decrease. Arrangements
nave been made already for the shipment
or S,250,000 gold to South America next
week. deposit Of S2O0OO00 at the sub
treasury today for transfer to San Fran
cisco viii also figure in the coming bank
statement. Reports that shipments of
gold to Europe next week were in con-
temptation gained currency today, but
We're not confirmed. The stock market
closed irregular. Total sales of bonds,
par value Sl,l65000.
Review of the Week.
shown the effect of the retirement from
the market of large speculative commit
mentS IN the Shrinkage of the volume of
transactions and the narrowing and hes
taung fluctuations. The speculative
spirit has been quiet and awaiting new
developments to direct new operations.
AS IS usual when the movement becomes
sluggish, certain proportion of impa-
tent holders have become DISCOURAGED
from time to time and thrown over hold
1ngS. The pressure Of LIQUIDATION has not
been severe, however, and only light de-
mand has developed from time to time
which has made itself marked only in
sptcat quarters OF the market The ac-
uOn or the market had had little 10 eX-
plain it in current events, but the esti-
mate IF reactiOnary tendency in prices
has the inevitable effect of bringing into
prominence elements of doubt or anxiety
In the outlook that would be ignored in a
EeriOd Of rising prices. Some Of the dis
cussion Of the supposed causes of reac-
ton has had to do with features which
have been in full force and of daily record
throughout the period of active demand
and rising prices for securities. Most of
the conditions on which the speculative
demand was based have remained in full
force The action Of the market is taken
10 illustrate the results normal to pc
rlOdS or great industrial and commercial
expansion and the speculative activity
which accompany them. The growth &c
prosperity invariably induces a demanC
which OutStrips the rate of expansion in
production and Outmeasures as well the
rate or consumption anticipating future
needs indefinitely.
It Is only when the perception energies
That the demand which is carrying up
prices IS beyond cOnsumptiYe require
mentS and made up in due proportion OF
intending sellers rather than consumers
that the check comes. The rate Of offer
tngs of stocks for some time past has
made il evident that the holdings intended
only Tor re-selllnS We're being diStri bdted
in larger proportions than the new de-
mand- The subsequent irregular fluctua-
tons. followed, accompanied by the oc-
caSlonal closing up Of short contracts put
out by bear operators upon the declines.
The quiet tone of the present week is
recognized as natural sequence of this
course of things. The situation has given
rise TO discussion of the important cues
tlon as TO how far the state of affairs
in the stock market is an index Of cond1-
tions TO come in the general situation A
decided effect was produced by the re-
views of the iron trade by the recognized
authorities published this week. The
markets in that trade are pronounced
quiet and in some spots easier.
Less New Orders.
The fact that the tonnage of new or
ders placed has grown less is attributed to
the fact that buyers are well covered far
into the year and because sellers have
cOntracted for their output. The prices
Of iron have yielded. Present cOnsump-
ton continues on an enormous scale and
the unprecedented prosperity of the trade
Is pronounced to be unimDairPd. The
pause in the demand for iron is of added
Of In n - 70
ported in the copper market ana in that
for some of the other metal. The money
market outlook has some influence upon
the stock market although no Immediate
pressure is felt for funds. The reDlen-
ishment Of cash for the New York banks
is impaired by the large absorption of
payment Of revenue due at interior points
for which drafts are made on New York
deposits by interior banks. The effect is
the same as though the funds were with
drawn from New York 70 the interior.
Another indirect effect on New York bank
accounts IS the withdrawal by interior
banks of credits in the stock market to
take advantage of the high money rates
during the period Of Stringency. With
the recession in money rates the employ
ment of the funds at home is found of
more advantage. To meet these maturing
obligations loans are made from the New
York banks These maturing obligations
are reported to be large. both to interior
and foreign lenders and their transfer
TO New York banks is an important fac
tor in the expanding tendency of the loan
account or JnOSe institutions. The facil-
ity with which they may be renewed with
foreign lenders depends to an important
extent upon the course of foreign money
markets, especially Paris Rates there
have been easy THIS week and sterling
exchange at Paris has advanced with
corresponding relief of pressure on New
York. But the London discount market
has beer firm. Many important financial
deals" have figures in the stock mar
ket discussion of the week as for some
time past but none of them are authorita-
lively confirmed
Some Of the speculative bonds have
been active. but investment issues have
been quiet.
United States bonds were all unchanged
on call for the week
Stock Quotations.
Sales. High. Low. Close.
A la