The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-09-02
BETTER FEELING
IN WALL Street
Improvement in Prices Fol-
lowed Announcement of Plan
of Secretary COrtelyou.
LIGHT DEMAND FOR STOCKS
CRISIS SEEMS TO HAVE BEEN
SAFELY PASSED.
LIGHT DEMAND FOR STOCKS

New York. Sept 1.-The feeling of anx-
iety and apprehension which has been
prevalent in financial circles for several
weeks past was perceptibly quieter last
week and this was reflected in some i'm
provements Of prices. This was accom-
panied without any very substantial re-
Vival Of demands for stocks, the buying
coming clearly for the most part from
the covering of short contracts left open
as consequence of bear operations dur
ing the prolonged declining On the SELL
ing SIDE, however, there was a marked
substdence of the kind of pressure which
has kept the market In disorder during
the recent period. The change in senti-
ment was easily discernibie in the disre-
gard OF the rumors of an alarming char
acter Which were circulated in the early
part of the weeks alleged emoar1 assment
by stock ana bond houses, and even by
influential houses. the bears soon per
celVed that these devices We're ineffect-
uaI, and they were ed perforce to buy in
stocks on a rising scale to cover their
short contracts.
Rescued by coTteIyou.
Quite the most influential factor in the
situation was the announcement by the
secretary of the treasury of his intention
10 make large weekly deposits of govern
ment funds with the national banks dur.
ing the period of the crop movement de
mand. The response was prompt and not
only in the American money market but
in the great foreign money ceDters as
Well, in London especially. the discount
rate declined and IL became quickly man
tfest that defensive measures in that mar
ket against New Yorks supposed inten-
tons to draw on foreign money resources
were being abandoned AS 2 matter OF
fact the earnest purpose of the present
recuperation amoag some of the great
foreign banks was based largely on the
sohcitude over the short supplies of food
stuff.
Floated Back From Europe.
The treasury measures for supplying our
currency needs give promise of a relaxa-
uon Of demand on foreign money re-
sources for this purpose There is gen
erai agreement, however, that this coun-
Jrys position IN the situation is stronger
than for, several years past at this period
OF the year. For one thing. foreign lend
erS OF money have exercised a sharp dis
cflmlna ton against Would-be borrowers
so that outstanding bills In foreign
markets cunning to maturity are much
smaller than usual. The past few months
also have seen very large return of for
elgn holdings of American securities to
The home market This has been a mate
rial factor in addition TO the burden OF
nome stock during the period of stress
but the floating supply of American Sc
curities abroad has been correspondingly
( reduced and a smaller supply left avail
able for sale TO Influence the market.
New York Bonds.
Not ali of the early rumors of forma.
ton Of a bankers syndicate to big for
the whole issue of New York bonds were
confirmed, but the opinion was that the
offering would prove a success and a
goodly portion of the issue would be
placed with foreign investors. The fact
that the rate OF interest on the New York
issue had been raised TO Az Per cent
compared with the previous per cent
rate, lent clear reference Of a high pre-
vailing rate for capital still existing and
led TO some read1ustment of not only New
York City bonds. but of other high grade
investments The prospect that the-issue
would be placed. however, indicated the
fixing Of New York standard and OF the
breaking Of deadlock which has existed
between capital and its employers.
Scrip Instead of Cash.
A forcible reminder, on the other hand
of the difficulty which still remains was
shown by the decision of Erie to offer
scrip as a dividend instead Of the regu-
lar cash dividend. This determination to
conserve cash resources for outlay in re-
quired betterments was regarded as so
far symptomatic of a general condition
as TO cause some renewed weakness in
stocks of companies known TO be SINH
larry situated Evidence was at hand also
of the continued reaction in the iron and
copper industries. but reports of the con-
ditions in general mercantile lines showed
activity sustained.