The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-09-14

GENERAL PUBLIC OUTSIDE
BUYING AND SELLING CONFINED
TO PROFESSIONALS.

New York, Sept. 13.-Last weeks OPP
erations in the stock market showed
the still stimulating effect of the re-
dundant condition of the money market
by a further rise In prices in the first
few days. The sharp reaction which
accompanied the small furry in the
call loan market of the latter part of
the week was a striking testimony to
the important part played in the specu-
lative position by the ease of the money
market. The abundance of funds which
could be procured on call at one per
cent OF under constituted a strong at
traction for the taking on of stock
holdings and the marking up OF prices.
The operations to this end have been
frankly ascribed to a limited circle of
very wealthy capitalists, with the fol-
lowing OF strictly professional operators
who trade in and ,out of the market in
the wake of such investment.
There has been an agreement between
commission houses that the general
public was taking small part in the cur
rent activity in the market. The in
ference from this condition would be
that the active dealings on the stock
exchange were not effecting any wide
spread distribution of stocks. There Is
equal agreement. on the CtntT manu-,
that substantial holders of stocks have
shown little disposition to market their
holdings. in spite of the attractive level
to which prices have been lifted by the
summers rise.
Price REIMBURSEMENT.
The readjustment of prices was like
wise justified in the minds of its pro-
motors by the low interest for money
compared with the return on securities
and by the revival in business activity.
That the money condition was outrun-
ming the business improvement as a
dominant influence on the stock mar
ket, has been a growing suspicion which
is emphasized by the revision called
for by some of the earlier estimates of
the latter factor. The hopes at one
time entertained of bumper grain crops
have disa Dpeared in face of the gov
ernment's estimate of the Sept. l con-
dition. published last week. The prom
Use of good average crops and at profit
able prices which is now in prospect
does not alter the necessity for specu-
lative readjustment of earlier and more
sanguine estimates. The moderate rate
of recuperation in the iron and steel
trade and the lack of evidence that
railroad earnings are being restored to
the former level are of like admonitory
influence upon excess of speculative en-
thusiasm.
Free Foreign Selling.
The opinion of the small amount to
which investment holdings of stocks
are being marketed finds an exception
I'm the case of foreign holdings, of
which free offerings are coming home
according 10 experts in the foreign eX-
change and international stock market
This is believed TO form an important
clement in the persistent strength of
the foreign exchange market, which
brought a revival Of talk of possible
gold exports during the week. a spe-
cial factor in the foreign exchange mar
ket was the requirements for redemp-
ton of New York City revenue bonds
falling due in London on Nov. l. This
requirement in itself is not sufficient
10 arrest the extraordinary strength of
the New York position in the unequally
excessive merchandise exports from
this country since the first of January.
the unusually small borrowings abroad
through the summer on finance bills |
and the small drawings of exchange
heretofore in anticipation of the crop
movements.
Preparations for coming government
loans are prompting the strengthening
of the central banks abroad and the
lifting of money rates which this en-
tails tends TO force securities into the |
American market for sale from foreign |
quarters. Demands from the interior !
for currency to move the crops. while !
belated and still light, are beginning TO |
make some inroad on New York bank |
ing reserves. The strength of the for
eign exchange market at this season. |
with all these things considered, leaves |
to be explained Some in |
fluence is due to the state of practical |
of bank note issues. Not more /
than 1000 900 of the $50. 000,0 900 sudden |
expansion in bank notes which followed /
the panic last fall has been retired in |
spite of the redundant money conditions |
which have developed since. The auto
matte pressure for retirement is seen in |
the enormous current redemptions of |
these notes by presentation at the
treasury.