The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-06-22
BOOM IN PRICES
GETS A BACKSET
Spectators in Wall Street De-
termined to Get Out
From Under.
OUTLOOK is DISCOURAGING
CAUSE FOR ABRUPT CHANGE
UNKNOWN.

New York June IA pronounced de-
termination to get out of speculative hold
ings in stocks developed in the stock mar
ket today. The small regard shown for
prices in effecting this purpose argued a
precipitancy which had a very discOurag-
ing and depressing effect on speculative
sentiment. The cause for the mutations
in speculative sentiment are not always
easily discOverable, and there was moth
ing on the surface of the days events
which would account at all for the abrupt
transition from the confidence manifested
in yesterdays buying of stocks to the
endless throwing over Of holdings which
characterized tOdayS market. The ma
ture and the volume of the selling, IL
view of this lack of explanation of events
in itself proved formidable to the mainte-
nance Of confidence and gave rise to a
feeling of anxiety Of causes lying beneath
the surface which might be the induce
ment for the large selling which was in
evidence in the market. The impressive
selling was especially conspicuous in
Pennsylvania and in the United States
Steel stocks. and the sympathetic effect
of this upon the whole market was very
bad.
Some of the events of the week which
are regarded as most important from a
financial standpoint are recognized as cal
culated to be of special benefit IN Penn
sylvania in its StOCk-market standing, and
il is assumed that the benefit thus afford
ed to the stock was a motive in bringing
about these events. Yesterdays acti'
by the directors of the Baltimore an
Ohio in advancing the dividend from >
per cent to a per cent basis was such an
event. SO was the statement given out
by the president of the Pennsylvania In
connection with the flotation of the Paris
loan. which was a review Of the finances
of the company. evidently intended to re-
assure public opinion on the subject. That
there should be such urgent pressure to
sell the stock and such an important vol
# EffFr1 FIraTF
in face OF these measures calculated TO
sustain the stock in the market gave rise
to uneasiness on the part of the specu-
lative holders looking to a rise in the
price
The persistent selling of United States
Steel was of a similar effect on general
speculative sentiment. The reported cut
in prices Of southern foundry iron was con-
sidered largely responsible for the weak
ness in United States Steel, although the
supposed intention to issue bonds for the
completion Of the Indiana plant was also
cited as ground for the selling The spec
ulative influence Of the cut in southern
iron prices is enhanced by the fact that
it discIOses a trade policy traceabie to
the same sources as were responsible for
the sudden cut in wire prices several years
ago in the midst of prOClamatiOns of I'M
paralleled prosperity in that trade and an
active bull speculation in stocks, led by
the authority in the trade
Aside from these somewhat sentimental
considerations. there We're no important
developments affecting the stock market
Money on call was easy. the stock market
liquidation probably having an influence
in this direction Foreign exchange de-
clined further i'm response to the reduc-
ton in the Bank Of Eugland's official dis
count rate but rates for time money con-
tinued strong and only light supplies were
offered. Account is taken of the approach
of the time for preparations for the July
1st settlements which are expected to
cause some pressure on money supplies
The grain markets remained under the in
fiuence Of scattered reports of crop dam
age which were not calculated to help the
stock market. There was some rally on
short covering during the last hour Of the
session. but the closing tone was easy and
only a fraction above the lowest
Bonds were easy. Total sales, par value.
81. 705.0O0.
United States bonds were all unchanged
on call.