The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-02-04
STOCK MARKET
BECOMES WEAK
Prices Hammered Down All Along the
Line, Some of the Favorites
Being Hard Hit.
OUTLOOK BECOMES CLOUDY
UNEAsINEss CAUSED BY PROS
PEcT OF STRIKES

New York, Feb. S.-Tbe speculative
positfon in the market developed acute
weakness again today and prices yield
ed easily all through the list. Deep
inroads were made in the case Of some
of the speculative favorites. the
nominal motive Of the selling was the
danger of q strike Of coal miners,
which is brought to the attention OF
the street by the rupture Of negotia-
lions for a settlement between the
miners and operators at Indianapolis
APPREHENSION over the outcome was
fed by private adviCes from western
sources accompanied by large sell
ing orders from the western specuIa-
tive element. The taking of steps To-
wards a strike in the New York build
ing trades increased the influence OF
the consideration given TO the ldboT
outlook. The sensitiveness of the mar
ket to those developments III view OF
the previous published reports OF thS
progress making towards them was
proof of the vulnerable position OF the
speculation due to the satisfaction or
the demand for stocks from short IN
terests following the sharp reaction
of the early part Of the week.
The weak bank return also was
fOreseen and an element in the weak
ness in the stock market, although the
bank return was not Just what was
expected. The 81 129, 500 decrease in
cash was much less than expected,
but the expansion of the loan item by
s1G. %. 800 in the face Of the very large
liquidation supposed to have taken
place IN the stock market was dis
appointment. The net result was the
decrease in the surplus reserve item!
by 81 7O2, 225. The yielding Of fol eign
exchanges rates and a rise in selling
exchange at Paris carried conditions
away from the sold export point. The
adoption OF q measure by the French
deputies authorizing en- increase in the
uOte circulation of the Bank Of France
was q bearing upon the outlook for
the movement of gold.
The Bank of France refrained from
Offering inducements for securing gold
in the recent past owing to the fact
that the authorized limit OF its note
circulation had been reached. leaving
Ii no advantage from an increase of
gold holdings. There were some raj
lies from the lowest prices OF the Gay,
but the closing tone was unsteady and
showed some important losses for the
cay.
Total sales of bonds, par value,
1,jJ5, 900.
Review of the Week.
The stock market this week has been
subjected to a shaking out Of weekly
held speculative holdings which broke
prices to a lower level with some vto-
ience. A rebound followed and the up
ward movement was aggressively re-
turned at some points. The recovery
was partly due 10 a feeling of relief
-T,4,
ments which had become reckless and
dangerous to a degree that held
threat of danger over the market. A
prolonged and notable advance in some
important stocks had been effected on
operations by organized parties in the
speculation possessed of enormous re-
sources and credited with intimate
knowledge Of the affairs of the COM
pany in whose securities they were
operating. These movements were
taken up by the new forces in the
speculation with resources newly ac-
quired out of speculative profits, whose
Information was not trusted and whose
plunging methods of market opera
lions were regarded with apprehension.
Former holders of the stocks supplied
their new demand so freely as TO en-
barraSs the attempts to advance
prices. When the market became IN
stable calls for additional margins
went out which could not be met. The
spasm of forced liquidation of the early
part Of the week was the CONSEQUENCE.
There was little news bearing uDOn
values to account for the rush to sell
and the great strength Of the general
situation served to attract renewed
buying at the lower level of prices.
The necessity of an uncovered bear in
terest which had sold stocks bought
eagerly upon the decline helped the
rallie. which were violent at some
points. The market went through re-
adjustment in this way and showed
the usual wavering and uncertain
tendency in perfecting the process.
Inc continued showing Of prosperous
conditions in the country did not pre-
vent the downward course of prices, the
reports of high earnings of railroads in
December which came to hand and the
extraordinary financial showing of the
United States Steel corporation for the
December quarter being regarded as
factors which had already had their in
HuenCe upon the past movement Of
prices More effect was produced nv
the record figures of the untitled orders
on hand on Dec. 81 for the United States
steer corporation. An index was thus
furnished of the coming activity in
trade at profitable prices for a period
running months ahead with the prom
10 VI q Stlili uleLllLiS eIeCJ on all lines
OF industry which is counted upon from
prosperity in the iron and steel trade.
The unusually mild winter has Injured
to the benefit of the railroads by saw
ing the expense Of snow removal and
the high operating cost caused by storm
construction. Account is taken how
ever, OF the decreased demand for some
kinds of winter merchandise which is
caused by the unreasonable weather.
Wheat Prospects.
Wall street is disposed also to keen
an attentive eye upon the winter
wheat CROP Reports thus far received
fail to indicate any damage from the
open winter. But the precedent of for
mer years makes the outcome a subject
of some anxiety on which the future