The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-01-07
LIVELY SESSION
FOR SATURDAY
Transactions on the Stock Exchange
Rose Well Over the Million
Mark.
SEVERAL UPS AND DOWNS
MARKET CLOSED ACTIVE AND
IRREGULAR.
SEVERAL UPS AND DOWNS

New York, Jan. 6.-Todays proved to be
one Of the two or three most active Sat
urday half-days' business in the history
Of the stock exchange, transactions in
the two hours rising well over a million
shares. The strength Of the market was
striking and comprehensive, notwith-
standing some slight irregularity and re-
actions Profit-talxing. in fact. was on
a large scale. but the readiness with
which It was absorbe was striking. The
fact that yesterdays trading failed to
show the late reaction which had &C.
Cured on each former day of the week
served to convince speculative opinion
that the weeks testing operations had
proved the strength of the market with
the definite relapse in the rates for
money on call The bank statement
proved something of a disappointment
but yesterdays low rates for call loans
were accepted as q truer index Of money
conditions and speculative operations on
Ethe long side were conducted with great
kbOldneSS and on a large scale.
II St Paul and the Southwestern Pa
Fifics were central features of the mar
/ket and gossip was very busy with fore
I casts Of the amount OF the forthcoming
Union Pacific dividend Several indus
trial speciaities which have not moved
hitherto also rose suddenly and violently.
The copper stocks and the cOalers were
forctd back after showing early strength
by the weight of realizing sales, There
was an enormous absorption Of L. 5.
Steel which advanced it to the highest
record on the present movement. There
was no great surprise that the heavy
local movements of cash had confused
the preliminary estimates or that item
in the bank statement, the loss in cash
running TO 81 19S, 700 in place Of the ex-
pected increase Of that amount.
The sterlins exchange market also, al
though nominal on Saturday, was dis
tnctly strOng and the continental ex-
changes moved against LONDON again.
There was heavy withdrawal OF gold
from the Bank OF England for shipment
to South America. These developments,
added TO the interest with which the
ments on the side Of the foreign ex-
change market. The stock market. how
ever, showed a later revival OF strength
and closed extremely active, but still ir-
regular. Total sales Of bonds, par value.
81, $4,000.
Review of the Week.
The weeks speculation has shown evil
dence of a struggle with the difficulties
OF the money situation; The strlngency
made progress towards relaxation, as
was taken for granted would be the case,
but the progress. was slow and the I'M
mediate requirements so stiff as to dis
courage many holders VINO had refrained
from liquidation even with the 125 per
cent rate of last weeks money market
a rate Tor CAL ICanS on TUESDAY OF %
per cent, on Wednesday Of 80 per cent,
and a maximum rate even on Thursday
OF % per cent fell so far short OF the
prompt relief expected that stocks came
freely upon the market from time to
time and caused considerable inroads
upon prices.
Money Situation.
The backing and filling of the market
under the Influence of the uneasy feeling
gave way to sharp drop on Thursday
afternoon upon the publication of the re-
marks Of Jacob II. Schfff pointing out
the possible dangers of financial cOndi-
lions in words that were given a sensa-
tiOnal significance. The Inconvenience OF
the money situation naturally gave rise
TO a great deal Of discussion OF its prob
able causes. The weight Of the criticism
up to the time Of Mr.. Schiffs utterances
bore upon the banking policy. The buy
q ing Of deposits. especially of interior
thanks by the offer Of interest rates on
AdeIosits during the season when funds
Awere in small request through the coun-
try at large was held largely responsible
fAr the piIing up of excessive reserves in
New York banks and trust companies.
the urgent pressure to employ these
funds was the cause for their placement
In securities and speculation from which
they could not readily be withdrawn
when the demands for circulation began
TO drain TO the reserves Of New York
by the withdrawal of deposits by interior
institutions The growth Of trust COM
panies, the magnitude Of their banking
operations and their freedom to place
their reserves of the banks themselves
were pointed to as greatly expan1 ding the
credit operations OF the banking system
without any. corresponding increase in the
available reserves.
Pressure for Credits.
which has resulted is recognized to be
due primarily to the unprecedented trade
activity and prosperity Of the country
But these conditions have been so clearly
n ms ny bS ST haK-
been so constantly heralded by warnings
against excess in the extension Of credit
that the banks are criticized for not put
ting restraint upon the borrowings and
providing better for the inevitable eX-
cesses of the autumn money markets Mr..
t SChiff's decisive fixing of the blame for
the situation upon the inelaStic currency
system Of the country has given new
course to the market of criticism. The
abStentiOn Of the United States treasury
authorities from measures or larger re-
lief for the money market have been a
grievance in the prevailing discomfort OF
the situation.
Of a more personal quality was the in
fluence Of the dissatisfaction felt and
loudly expressed by the customers Of the
great stock exchange houses has upon re-
ce1Vlng statements thos week OF interest
charges for December on sums borrowed
for carrying stocks on margin. Avera ge
rates for the month ranging from per
cent TO % per cent made a formidable
offset in speculative profits on any ordi-
nary advance in prices Of stocks. Ag-
grleVeQ customers point out t0aT the
usual charge TO them of per cent in
seasons when the commission houses are
borrowing for per cent on call or less
entities them to an averaging down Of
the rate, even when commission houses
have to pay 100 to rs per cent for day
or two. The commission houses retort
that the stock exchange regulations are
strict against any allowance of interest
to customers that would operate to re-
duce the prescribed. rate Of commission on
transactions on the exchange. Discon-
tent on this subject has caused no small
amount Of liquidation by disgruntIed op-
! orators and transfer Of accounts from
| one broker TO another, with accusation
kaodr recrimination amongst brokers them
selves which have kept the stock ex-
change authorities busy with considera-
ton of complaints.
While the belated relaxation of the
money stringency has served to aIlay
some OF the disappointment Of the earlier
part of the week, there remains some