The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-06-16
STOCK MARKET
DULL AND HEAVY
Bank Statement Revealed a
Larger Decrease in Cash
Than Anticipated.
CONFIDENCE IS LACKING
MONEY REQUIREMENT FOR
JULY I A6NoRMALLY LARGE.

New York, June 15-The heavy and list
less tone OF the speculation remained I'M
altered in today's stock market. Foreign
influences played some part In this show
ing. especially on account of the bearing
of the further demand for gold for ex-
port The financial difficulties in Alex
andria were reflected in the withdrawal
from London today Of s.. 250 900 for ship
ment TO Egypt. Discounts rose in re-
Spouse in London. The renewed complica-
tons in Russian politics turn attention to
the Paris markets and promise a con-
unuance OF the demand from that CEN
ter for gold. Foreign exchange in this
market, in fact, continued firm today. The
bank statement revealed q larger de-
crease In cash than had been estimated,
and as there was no loan contraction TO
reduce the deposits, the already narrow
surplus was still further depleted. The
loan item, IL was believed, did not fully
reflect the demands upon banks, in view
of the heavy dividend payments, which
fell due today, including the Standard Oil,
Consolidated Gas and Delaware, and
there were besides payable the first in
stallment of subscriptions on new South
ern Pacific preferred stock calling for
81 600 600. The effect of the loan item of the
banks may be thrown forward into next
weeks statement. The foreign trade state
ment for May was regarded with inter
est, owing to its bearing on the eX-
change situation. The heavy increase in
merchandise imports so far overbore small
gains in value of exports that the eX-
reduced TO 5000, 600 compared with s25,-
649O 600 for the month OF May OF last year.
Union Pacific was under some special
pressure. owing TO the rumOr of passing
of the Chicago & Alton system to Rock
Island control. The market became al
most stagnant before the bank statement
appeared and prices ran off slightly after
wards.
The bond market was also easy. Total
sales, par value. $4,000. The stock mar
ket of the week has reflected the lack
of confidence on the part OF operators 70
take on stocks. Some of the favorable
incidents were ignored. so far as any ef-
feet was manifest on prices The most
notable of the favorable factors was the
growth of confidence over the prospects
for the wheat crop. From the time OF
the appearance on Monday of the gov
eminent report of condition as of June l.
the prevailing course of prices of wheat
was downward. The over-extending spec
ulation in that grain was partly response
hle for this movement but the govern
ment report was of substantial effect in
quieting the apprehension which had been
felt of possible failure OF the total
wheat crop. Another incident which
caused speculation in financial circles was
the veto of Governor Hughes Of the New
York two-eent railroad fare bill and the
arguments contained in the veto message
for caution in the pursuit of corpora
tons.
The principal cause of the restraint on
the market was the money outlook, es-
DePlalN Inc immaculate requirements 10 De
met on July /. These are unusually heavy
for the regular purposes of dividend and
interest disbursements. and are cOmDlf-
Gated besides by some special require
ments for syndicate payments and bond
offerings. The interruption of the out
ward movement of gold early in the week
aroused some hopes that this demand
against the banking reserves had been
satisfied. but the resumption of ship
ments on Saturday disappointed these
hopes The low condition of the sur
plus reserves of the New York banks
with this prospect OF further drain in
the internal by the July payments. be-
gets caution about any extension of OBJ
legations for commitments in the stock
market.
The failure during the week Of large
structural steel enterprise was the occa-
sion OF much discussion. The failure was
attributed primarily to diversion OF cash
resources into extensions. which left the
enterprise dependent upon the money
market for working capital. The conduct
OF profitable contracts did not avail 10 Sc
cure the requisite credits The outcome
was regarded as one more illustration of
the scantv supply of capital.
J. J. HilTs public expression OF dis
cOuragement over the credit outlook for
railroads was an influence In emphasizing
this impression. There were rumors I'm
circulation during the week alleging en-
barrassments Of mercantile establish
ments which have made heavy outflow in
extensions. which the Mnliken failure
caused CredenCe for.
The definite formulation of these ru-
nors gave opportunity. however. for their
refutation.
The bond market continued apathetic.
with discoura ging effect on speculative
sentiment as some revival of the demand
for bonds Is looked for as the first relia-
bic sign Of recuperation in the market for
other securities.
United States bonds were unchanged on
call for the week