The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-11-13
STOCK MARKET
UNDER A CLOUD
Prices Seriously Affected in
Wall Street by the Fl
nanciaI Situation.
CALL LOANS AT 20 PER CENT
SHORTS WERE COVERING AT THE
CLOSE.
CALL LOANS AT 20 PER CENT

New York, Nov. 12.-The money situa-
ton had some effect on prices of stocks
To-Day The determined abStention from
operations in the market which was a
feature of last week gave place to some
Hquloaton. As the demand continued as
torpid as last week, the selling was eff
fected only at concessions which were
substantial in stocks where previous spec
ulatlon had been active. The compelling
influence in the selling was the calling
or loans necessitated by the deficit in the
legal reserves of the banks shown by the
Saturday bank statement. No source of
replenishment of cash is available yet,
and reduction of deposits by scaling
down of outstanding credits is the alter
native. Holders of securities thus called
upon for repayment seemed reluc-
tant to part with their holdings
and their efforts to secure fresh
up to 20 per cent early in the day
The local banks were said to be out of
the money market entirely and funds
were available only from the trust COM
paneS and out of town lenders. The large
excess over the estimates of the loss of
cash by the banks disclosed by the bank
statement may be due to the withdra wal
of cash by the trust companies These
institutions are under legal requirement
to maintain per cent of their deposits
in actual cash in their vaults as they
have not been in previous years Tt is
believed that the bank loan contraction
has been taken over largely by the trust
companies. This would necessitate an
increase of reserves in their cash in the
proportion of 4 per cent instead of in
the proportion of p per cent. as in the
aSe of the clearing house Institutions
The strinPepcv i'm the money situation
aggravated by the maturity of an in
stallment of about half the subscriptions
at par to S20.O00.OO0 of st. Paul stock
which therefore called for provision of
about $4,000 Oo0. Operations in stocks
were somewhat disturbed bv the explicit
assertion of the secretary of the treasury
that he would take no measure of relief
for the money market in present condi-
tons. The reDetitinn of the announce
ment today was that. after confident
assertions were in circulation in Wall
street. that early steps would he taken to
raplenish the money market in spite of
tho disclaimers of the treasury author
tiles.
Opinion is not united in financial cir
cIes as to the feasibility Of treasury
measures to give effective relief at the
rresent, time. It is recognized as out of
the question to bring about easy Condi-
tons i'm Wall street except by carrying
foreign markets with this to lower in
tereSt basis Anv marked relaxation in
ra ties here viii lead certainly to an outgo
Of gold to assist the struggle of the Lon
don money market 70 adjust itself to the
heavy coming requirement of the year
end settlements. The stock market set
tiement began in London today and car
ry-over rates were again stiff. rate Of
Q per cent heinz reported at one time. The
rates for sterling EXCHANGE had declined.
nevertheless under the influence of the
stringent money market and free offer
ines of cotton hills. Discounts bard
ened in London and Berlin. but the Bank
of England secured a large CONSIGNMENT
of South African gold newly arrived in
London The decline in nriceS If stocks
gave some additional point TO discussion
of the adjustment of the labor question
which is going on either nv voluntary adj
vances nv MANY corporations or by de-
mands from 1ahn" ORGANIZATIONS. Not
much apprehension was expressed of
strikes in snite Of the progress of bal
lot reported amongst the Erie firemen
or the question of going out.
The reports of the prosecution in prem
aration against tho Standard Oil com
many of an intended investigation Of the
Hartman railroad combinations by the
interstate commerce commission and Of
rumOred recommendations in the forth
coming message Of the president were
items in the DAVIS discussion and had
some influence in the depression The
part PLAYED nv the short
selling buyers was indicated by the re
coverv in the latter part Of the day que
TO covering of short contracts. The
closing was firm at the recovery.
Bonds We're heavy. Total sales. par
value. s21SS.0G0.
United States bonds were unchanged
on call