The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-02-18
'BEAR RAID On
STOCK MARKET
Heavy Professional Operator Took
Advantage of the Opportunity
to Depress Prices.
SEVERE DECLINE RESULTED
EVIDENT APPREHENSION OVER
THE OUTLOOK.

resulted from the active trading OF the
two-hour session today. The selling
was made up of heavy speculative liqui-
dalton combined with we'll conferred
bear attack on the market which was
credited to the generalship of a veteran
professional operator with the prestige
of many bear campaigns in the past
The movement evidently was propitiOus
for the attack. The renewed decline of
this week had brought prices back to
the neighborhood in the decline in Jan
uary. A fall below this level was bound
TO have the effect of dislodging specu-
1atfve holdings which were retained
through that decline. Add to this fea-
ture Of the weakness of the real posi-
ton of the market the feeling of dis
coura cement over the speculative out
look which has been gaining force
steadily with the perception of the per-
sistent drop in prices and the action Of
the market finds sufficient explanation
without reference to the news of events
having any more substantial bearing on
values.
The bank statement proved more IA
Vorable than had been expected. Only
a nominal Unread was made upon the
surplus. which it was feared might be
wiped out. The loss in cash was only
dDOGI IdiL u what was lnQ1caNeQ
the known movements of money for
the week
The principal interest attached to the
loan item and the contraction reported
OF 50, 600 was in contrast with the
fears that the heavy bond f1otations of
the week must have caused a large ex-
panslOn of banking credits. That there
has been in fact such an expansion is
not open 70 doubt, but by resort to for
eign lenders through the medium of the
exchange market, the local banks seem
to have been relieved for the present
from these requirements. The state
ment OF the country's foreign trade for
January published today shows the
large resources at command in the for
eign exchange market in the excess
values for exports over imports of S64-
O00,GOO compared with only about s25,-
CO0,O0O for the preceding January. The
SeVereSC pressure today conferred nat
. uraIIy upon the recent speculative IA
AVorltes, so that the widest declines are
0und in Reading, Union Pacific, Smelt-
ing, Colorado Fuel, Amaigamated Cop
per, the Hill group, Brooklyn Transit
and others which have been most prom
inent in the excessive speculation of
late. The decline in prices, however
was general throughout the list to the
extent of between l and points. The
feveTish rallies at the last evidently
were due to hasty prOf1t-takfng by the
successful bears and the closing tone
was unsettled and weak.
Total sales Of bonds, par value. ST.
$50. 900.
Review of the Week.
Confidence in the existing level of
prices of securities has suggested i'm
pairment this week and a growing dis
position towards the retirement of
speculative commitments for a further
advance has been the result.
The movement has been irregular at
times, but demand proved languid and
the selling required, forcing the aver
age price level lower with some in
crease in the volume of trading. The
causes Of the reaction are not obscure,
but the growing cleaTances Of the per-
ceptiOn Of them has given them added
influence. Stated broadly and in gen.
eral terms, the effects of over-specula-
ton in many widely divergent fields
are observable. Thus it happens that
with reports and statistics coming to
hand justifying the most Sanguine eX-
rectation INDUCED during the specuIa-
tive activity, it is found that the buy
ing Of securities based on these cOndi-
lions has been mostly ACCOMPLISHED
For those who bought with the inten-
tiOn Of selling and who relied upon the
demand to be exceeded by the fulfill
ment of the expected prosperity, the
Traket has lacked absolute power to
take the offerings coming upon 1t. In
the money market also the available
resources have been so far taken up by
anticipation that the seasOnable ref1ux
of funds into banking reserves is prov
ing insufficient to supply the cOnverg-
ing demand without forcing up interest
rates to an extent that have proved an
additional discouragement to the
speculative holding of securities.
The reception by the market of some
nf fha events Of the x1-aal< offav-
pies of the feeling about the prices of
stocks which have been brought about
by the expectation of these events. The
settlement Of the contest over copper
properties in Montana has long been
expected and the rumors regarding it
have furnished some of the most i'm
portant ammunition for the conduct of
the speculative campaign. The formal
announcement of the terms Of the set
Element was met by wide declines in
the stocks affected. The same was
true of the Union Pacific directors in
raising the dividend rate on that stock
to per cent.
In the money market the effects of
past measures anticipating the future
are clearly marked. Enormous sums
were borrowed on time to carry
through the successful speculation of
last fall when call loan rates went to
12S per cent without shaking the stock
market. These loans are reaching
their maturity at the present time
wien it was expected money would be
seasonably very easy with the return
of currency from the circulation into
bank reserves. This period of expect
ed ease in money was also relied upon
to stimulate a public speculation in
stocks to take over the holdings of the
powerful combinations which held
stocks through the early winter But
there has conVerged on the present
: money market, which was thus
looked to to supply resources to liqui-
date the speculation. an enormous de-
mand for capital for extension Of en-
terprises in all directions. which finds
It's reflection in a stream Of new bond
end stock issues The>yolume of these