The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-01-28
SLUMP IN THE
STOCK MARKET
Price of Reading Broke Early and
the Rest of the List Went
Off in Sympathy.
REASON FOR RECENT BOOM
PROSPERITY SAID TO ENHANCE
VALUES.


speculative position in Reading broke the
market today and led up to the weak and
active closing with sharp losses in q
number of important stocks. The reck-
less speculation in Reading has been
viewed with apprehension for some time.
The feeling has increased with the later
stages Of the advance owing TO the no.
tOriety Of the longing tactics OF the new
force in the speculation in that stock
which until a recent period was distinct
from the pool operations making the pro-
longed upward movement in the stock.
Gossip has been busy with the growing
involvement of this speculation owing TO
rumored unloading by the pool itself into
the ventureSome hands Of tho new party
TO the movement. 1t was alleged that
the holdings for control OF the great rail-
road systems even were being offered in
the market to check the wild advance in
the stock It was current belief that SIM
liar conditions existed in Colorado Fuel.
These two stocks and also Brooklyn
Transit gave abundant evidence of forced
liquidation today. Readings slump
reached go, Colorado Fuel SO, and Brook
Ign Transit rs. Fears of the conse-
oueuceS induced free selling in other
quarters and carried the whole list down
sharply, the Pacifics being notably af-
fected. The earlier show of strength in
Amalgamated Copper, United States Steel
preferred and in some quarters of the list
statement was disappointing, but was not
decisive in its influence on the market.
There was a smaller gain in cash than
was hoped for, and the S15,5l7,S00 eXpan-
sion in the loan item was not liked. in the
face of the heavy liquidation known to
have occurred in the stock market during
the week. It is believed that large ere
dit obligations have been transferred
from foreign lenders to the local banks.
The decline in the call money rate has
taken the trust companies out of the
money market to a large extent. The
rise i'm discounts in London and Paris to-
day, the decline i'm sterling exchange at
Paris and the strength of foreign ex-
change in this market all tended in IA
vOr of an Outgo of gold to Paris. COndi-
tons are estimated to be at the gold ex-
port point but no available steamer sails
until past the middle of next week. A
chanee in conditions in the interval
would avert an OutgO of gold. Total
sales Of bonds. par value, $2,565,00O.
Review Ct the Week.
Business in the stock market has been
on a very large scale throughout the
week. transactions on the stock exchange
rising to a total of nearly 100000 shares
on two davs Of the week. The activity
of speculative interest is reflected in
these figures. But enormous sales to
tFke DrOfit~ have characterized the mar
Yet throughout and have reached suffi-
cient volume to affect prices and caused
sharp reaction at various times. The
movement of prices has had its inevitable
effect on speculative sentiment and re-
suits i'm n growth Of divergent views on
the future course of the market. This
whole movement has hinged almost en-
tirely on the consideration OF technical
conditions in the market and has taken
little account of business industrial and
financial affairs OF more influence was
the fact that some of the largest indi-
Vidual specUlCtc~s and the most powerful
stocks freely and were reversing their
policy Of steady accumulation and sup
port of the market. In some cases it was
Inferred that the closing OF the specu-
lative holdings has been completed from
fhE Fgct tEat former arttCs On the part
of the large ODeratOrs of sustaining the
market were abandoned and views open
" expressed by the party leaders unfa-
vorably to further attempts to advance
prices OF even to maintain them at the
present level. In other cases supporting
tactics were continued. but evidence of
persistent selling on all favorable oppor-
tUnities had the same effect on specu-
latiye sentiment as the shift in other in
stances TO the avowal of views for lower
prices. The reversal of opinion in these
cases was attributed to various motives.
The extent Of the advance already
achieved in the prices Of securities has
done much to meet the growth of pros
perity on which they are based, and ac-
tive discussion IS going on over the
proper prices to represent actual en-
hancement of values which has accrued
to all securities by the prosperity of the
country. In the highly speculative cOndi-
tons existig in the market more import
Rnce was attached TO the movements of
special stocks. There has been marked
revival Of speculation in some of those
which have risen most in the past specu-
lation. Their later flights have been
without visible development regarding
the properties they represent and without
any confirmation of many of the rumOrs
which were employed in the earlier stages
of the advance. II IS the supposition
that these later movements are due to
the entry Of new forces into the opera
tons in special stocks in the attempt to
carry their prices into untried upper re-
giOns which are distrusted by the earlier
accumulatOrs. The heavy offerings from
the earlier holders have had the effect
Of frustrating the new designs. Money
has continued 10 grow easier. especially
for loans on time, and a moderate outgo
Of gold and the possibility Of fits contin-
uance has not affected the money mar
ket and have not been an influence.
therefore, in the hesitation manifested in
the stock market
Bonds have been in good demand, with
some upward tendency Of prices.
United States new As coupon declined q
per cent on call on the week
Stock Quotations.