The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-12-30
LOWER PRICES
IN NEW YEAR
Financial Review and What Is
Thought of the Persistent
Drop in Stocks.
ANXIETY ABOUT JAN. l
GREAT SUMS NEEDED TO MEET
OBLIGATIONS.

New York, Dec. 29.-The downward
irift Of prices of stocks last week, in
a market that was almost idle at
times, reflected the restraining influ-
Ance of the scantiness of money sup
plies and the purpose 20. await develop
ments in the commercial position over
the end of the year. The source OF
anxiety was clearly indicated by tnt
brisk rebound in stocks at the end OF
he week. induced by the decisive ie-
cline in the premium on currency, the
cancellation of gold engagement III
London and the differences drawn from
these incidents of a clearing OF the
money situation.
Prepare lions for the yearly settle
ments made requirements which would
give care for their provision in normal
money conditions. Because dividend
and interest payments for January, es-
timated at around S1S5000.00 600, there
falls due on Jan. / subscription obliga-
lions for new Northern Pacific and
New York New Haven & Hartford
stock and American Telephone & Teie-
graph company convertible bonds 10
the amounts of nearly $30,000.OOO
Need Money to Settle.
There was good deal of calling of
loans by the banks in preparing Tor
this financing which acted as an ac-
tive repressive influence on operations
in stocks. There was, besides, the ap-
prehension that the money situation
would react unfavOrably on CONNER
cial affairs after the first of the year
Large maturities fall due at that
time of mercantile paper based on eX-
tensive previous purchases of mer-
chandise of all varieties. for which the
market has been VIGOROUSLY uDfavor
able in the depression which ensued
upon the banking crisis. The market
FOR mercantile paper in New York since
that time has been scarcely more than
nominal, and the prospect of the con-
tinuance of that condition caused anX-
iety over adequate demand TO provide
for needed extensions of some of those
maturing obligations.
Many Notes Fall Due.
one OF the weeks developments
which attracted most attention was the
revival Of a demand on the part of in
terror banks, small in itself, but re-
garded as important as a possible
symptom of better things for mercan-
tile paper of the best grades. Besides
this immediate need of mercantile Dor
rowers, a feature of the money market
for the coming year will be the large
volume of temporary note issues of the
great railroad and Industrial corpora
lions. which were put out last year for
emergency expenditures after the mar
ket for ordinary bond issues became
glutted and which fall due at various
periods throughout the coming year, to
I, total estimated at $4,000, 600.
What Bank Reports Show.
The banking position upon which
these conditions converge had light
thrown upon il last week from several
sources. There was published the di-
gest OF conditions Of all the national
banks as shown in the reports TO the
comptroller of the currency of Dec. 3,
and also reports TO the New York state
banking department of conditions of
state bands and trust companies as
Of Dec. 10. The reports of the national
banks OF the country completely con-
firmed the inference of the wholesale
withdrawal from reserve and central
reserve cities of deposits of banks
which had the proportion of their re-
serves permitted by the national bank
ing law intrusted to those depositaries.
The comptroller's digest shows, beyond
mis-. that the smaller banks heavily
cilrtailed loans as we'll as calling home
their deposited reserves, while the CEN
tral reserve banks infringed upon their
legal reserve limits and issued clear
ing house certificates TO provide re-
sources to meet the strain which thus
threatened a breakdown.
The reports 10 the New York bank
ing department shows the state banks
in New York, members of the clearing
house. as liberal contributors 10 the
means for meeting the crisis, while the
reports of the trust companies clearly
define the pressure on those institu-
tons as a whole, in sympathy with the
severe runs on d few OF their mem
beers and the additional strain thus in
volved on the reserve Of the clearing
house banks.
Gain by Savings Banks.
The conditions thus reported are as
they existed in a period past. and the
experience, of similar crises in the past
show a pTacedent for quick recupera-