The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-10-30
HELD IN CHECK
BY THE BANKERS
Wall Street Spectators Unable
to Get Necessary Funds to
Gamble on Margins.
RESULT is NARROW MARKET
LIST SHOWS NET DECLINES FOR
THE DAY.
RESULT is NARROW MARKET

New York. Oct. 2e-The banks assert
ed their influence determinedly and. in
the estimation Of holders of securities on
margin, ruthlessly today for the retrench-
ment Of borrowing on stocks. The an
nouncement OF the dissolution of the
bankers pool yesterday which had pro-
vided funds last week to save the stock
market from Generalization was accom-
panied by broad limitations that the pool
had not been intended to bolster up spec
ulat1On or TO attempt anything like re-
vival of strength in stocks by use of bor-
rowed money. Advice has been conveyed
TO stock brokers in terms not to be mis-
understood that the banks would frown
upon any marginal operations in stocks.
Brokers as a rule have refused TO accept
orders for such transactions The market
is thus reduced to exceedingly narrow di-
mansions, operations being restricted
practically TO buying of securities out
right for cash.
The lending of the money of the bank
ers' pool last week seems to have been
done with purpose to tide over weak
ness 10 save the general situation. Some
readjustment is now in progress and
some accounts are being forced out that
seem 10 have been carried over last week
with this condition attached. Calling of
loans was on quite large scale. with
the buying demand limited to those with
cash resources in hand, the effect on
prices was not surprising, but was more
or less disturbing.
The line of the discrimination exercised
against borrowers was not clearly de-
lined by any announcement on behalf of
the bankers, nor was IL Indicated by the
character of the stocks which were being
sold out, these including high-grade and
active stocks for the most part. The re-.
duction of loans by the banks thus eff
fected has its direct influence in reduc-
ing the severe pressure on the money sit
uation, but the policy pursued by the
banks has in mind the wider effects on
the situation in the attraction offered to
cash investment by the low prices of Sc
curltieS. This attraction was operative
today, both for home and foreign account
The considerable volume OF the days
market, while 1t marked the severe sac
rifices of coerced borrowers may be
safely assumed also as measure of alb
sorpton by outright cash buying, since
practically no other class of buying was
feasible in the dearth of banking credits
10 take up purchases on margins. Buy
ing or TINS kind Is relied upon as an i'm
portant aid TO the unlocking of cash re-
sources which have gone into boarding
The purchase of securities here for for
elsn account also is a material factor in
furthering the control of the information
al exchange which may enable additional
imports of gold
The response of the foreign money mar
ket yesterday to heavy engagements of
gold for shipment to New York was pro
hounced. The advance in the discount
rate of the Imperial Bank of Germany
by a full ! per cent indicated the deter
mination to oppose Withdrawals of gold
from that market The Bank of Eng
land was reported as discounting nothing
at less than per cent, which would in
dictate an intended drastic alteration IN
the present AZ per cent minimum discount
rate. There was a cancellation of part
of one on yesterdays gold engagements.
and the recovery I'm foreign exchange to-
day was on a demand attributed to COW
ering against some Of yesterdays gold
engagements.
Another rise In the price of copper was
the measure of the additional buying for
export. There was a sharp reaction from
the violent early advances in the Lon
don price of copper. 1t is noteworthy
that. Notwithstanding the famine condi-
tons in the money market. there are still
outstanding s., $50 of government per
cent bonds which were redeemab!e on
July l last and which ceased to bear in
terest on that date
A cut in prices of meat by western
packing houses was an Incident OF the
readtustment going on TO incite new de
mand for products. The appearance of
some supplies of money at the stock ex-
ehange late in the day induced some raj
lies, but the days net declines are Sc
we're
Bonds were weak. Total sales, par val
ue, 81 $4,000 United States bonds were
unchanged on call.