The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1907-07-08
BULL PARTY WAS
IN ASCENDANT
Had Control of Stock and FL
nanCiaI Markets Last
Week-The Outlook.
SETTLEMENT DAY Is OVER
ELEVATION IN FOREIGN MONEY
MARKETS NOTED.
SETTLEMENT DAY is OVER

- York July The action of the
81 ,ck market during the past week has
i.Ccted some conflict of sentiment over
the future course of values or some mix
ture of doubt amongst those who have OPP
Grated for higher prices Occasional II
regular fluctuations Of prices have been
the result. The bull party, on the whole,
has held the ascendant and has been able
10 maintain prices and make some snow
of strength in the market. Sales to real
izc profits by those who have bought
stock last week caused an early reaction,
but after these had been absorbed prices
again showed hardening tendency. The
conviction seemed 10 be maintained that
the worst of the Unfavorable factors with
which the market has had to contend
was safely passed.
Not the least formidable of these was
the burdensome money settlement, which
weighed upon the financial market. The
maturity of the half year in itself was a
matter for congratUlation in the absence
Of disaster in meeting obligations. In the
bank reports of this week are evidence OF
the enormous transactions which are put
through, not only in New York, but in
London and Paris, and especially in Ber-
lin where the changes in the different
items of the report of the Imperial bank
of Germany exceeded any previous rec
ords. Even after the settlement was COM
pleted disquieting rumors continued TO
emanate from the German capital and
were an unsettling influence in other
foreign centres.
Foreign Markets Recover.
Foreign money markets. however. were
quick to recover from the strain of set
Elements. The relaxation in money abroad
failed to develop any revival of invest
ment demand for securities and brought
corresponding disappointmentS. In New
York the money market was slower to re-
lax, rates on call ruling higher early in
the week than last week. The course of
the foreign exchanges also indicated a
waiting demand for our gold as soon as
any relaxation should occur in the local
money market. The belief became gen.
eral that a resumption of gold exports
10 France was imminent. Instead of that
there was shipment of Sl.0O0OO0 TO HOl-
land, after which foreign exchange rates
declined and the movement TO Paris was
aVerted.
The Bank of France is still seeking to
Teplenish its gold holdings, but London
Telinquished some supplies late in the
week, with the effect of relieving the
demand upon New York. 1t had no ap-
parent effect I'm reviving the investment
demand for securities. the bond market
remaining neglected and sluggish. The
organized party, embarked on a move
ment for a rise, have maintained their
caucus and have operated for further
advance. The retreat of a short interest
has furthered their efforts, a considerable
party having sold stocks short on the rise
of the previous week. and especially after
the failure of the New York City bond
sale had become known.
The sluggishness of the investment de-
mand for securities undoubtedly finds
large explanation for the large amounts
which have already been spoken for new
security of railroad companies, INSTALL
ments of subscriptions falling due from
time to time Thus there have already
fallen due during the present month sub
ScriptiOns to Northern Pacific stock which
called for nearly $1,000 600. and for At
Gibson convertible bonds, which called for
s., S00,GJ0 while there is yet to be paid in
July s., 0000 600 for the Great Northern pre-
feTred stock 81 900 for Union Pacific
convertible bonds. and $75OO,00O for South
ern Pacific preferred stock These new Sc
cuTities are offered to the stockholders on
such terms as to prove more attractive
than securities in the open market even
at the lowest prices, which have recently
prevailed. The supply of available capt.
tai as il may accumulate. is thus diverted
from the usual investment channels and
the revival of investment in the open mar
ket thus deferred.
The operation OF the redemption of the
government per cent bonds
which matured on July /. is prov