The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-09-25
PRICES SLUMPED
EARLY IN THE DAY
Accumulation of Selling Orders
Worked Off at the Open
ing in Wall Street.
SHARP RALLY FOLLOWED
APPREHENSlON OVER MONEY
SITUATION.

New York. Sept. H.-DiSturbed Senti-
ment over the money outlook induced
considerable selling pressure on the stock
market today, and it was not until accu-
mulated selling orders had been worked
off to some extent that a recovery set In.
The rally had about wiped out the early
losses by the middle of the afternoon.
The early selling was reinforced to con-
siderable extent by short selling for &C
count of the professional bear traders
Their operations were encouraged by
misleading of the significance of the sub
treasury figures, which showed on their
face a withdrawal of $4l2OW from the
banks since the bank statement The in
ference that the banks were poorer in
cash to this amount than shown In the
bank statement was, however, unwarrant-
ed. The false impression is due 10 tine
extraordinary amount of confusion in &C
counting caused by the operation of the
treasury's methods of assistance to i'm
porting of gold.
The apparent loss by the banks on
sub-treasury operations is due to repay
ments of advances made to them by the
government against engagements OF gold
for import in accordance with the agree
ment OF the banks when they should re-
ceive their consignments Of gold shipped
But the repaymentS, are made with the
newly arrived gold and are not withdrawn
from the present cash reserves of the
banks as the Sub-treaSury accounts
seem TO indicate. Some of the profess
sional selling induced by miScalculation
of this item was covered later in the day
and helped TO the rally. There was not
much change in the money situation or,
rather, in the procession of events which
is drawing tighter the money market
The weekly arrival of South African gold
in London furnished material for New
York s demand which yielded an addi-
tional engagement of about a million dol
lars. There were no Withdrawals from the
Bank of England for New York account
and no further supply was secured in
Paris The bidding for the gold in Lon
don advanced the open market rates a
fraction. Discounts hardened also in
Paris and Berlin, and expectation was re-
ported of another rise i'm the official rate
or the Imperial bank of Germany this
week. While the official rate at the Bank
of England remains at 4 per cent that in
stitution demands Az per cent on Amer
lean bills and per cent for money. The
prospect, therefore. Is for much smaller
engagements of gold this week than last.
Routine sub-treasury operations also
are making drain on the banks. al
though not in the proportion suggested
by the wrong inclusion of the repaymentS
of gold imports. The government inSti-
tuition was a creditor at the clearing
house this morning to the extent OF $685.
923 The principal factor in this showing
was large transfers of deposits due at
interior points. banks of the interior
drawing on their New York correspond
entS to pay obligations to the govern
ment. a deposit Of $4,000 at the sub
treasury was for the purpose Of tele-
graphic transfer to St. Louis The scar
city of funds i'm the time loan market con-
tinued In view of these conditions, the
conviction grew that the treasury relief
for the money market was essential to en-
able it to meet the Oct. l demands upon
1T. The belief that such measures were
imminent was general late in the day and
contributed largely to the improved tone
of the stock market. The late recovery
became decidedly strong, but the only
stocks to yield any considerable net gains
were the Hartman Pacifics, AtchisOn,
Reading and Amalgamated Copper
Bonds were easy. Total SALES, par val
ue, $1,S5O,0O0 United States bonds were
unchanged on call.