The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-02-24
MAY NOT Be ABLE
TO HELP IN FALL
Uncle Sam Relied Upon to
Furnish Money for Crop
Moving.
LARGE MONTHLY DEFICIT
BONDS AND CERTIFICATES WILL
ALSO BE DUE.

Nov York. Feb 23-Last week 5
stock and bond markets were kept I'M
settled by some very drastic Iiquida-
ton in special securities, which re-
suited in acute weakness at those
points and aroused considerable an
prehension as tdA the causes which
might lie behind this urgent selling.
The general list of securities. neverthe-
less. showed good resistance to the
sympathetic effect of these points of
weakness and reflected the needs of an
uncovered bear account which was re-
buying stocks previously sold The
character of this buying was pretty
clearly revealed in the action of
stocks when news unfavOrably affect
ing them. but which had been def
nitely predicted. was published These
events were followed by upward move
ments in the stocks affected. The gem
eral list was inclined to act in the
same way. with developments in the
general situation which were regarded
as unfavorable. thus demonstrating an
oversoid condition of the market
Check TO Contraction.
At the same time the course of
events was regarded as offering evil
dence of a check TO the movement of
contraction in general business and in
dustry. leaving room for estimates of
the limits of the depression and var
ious opinions of the future course of
affairs. The shifting movement of Sc
curities prices and the contest between
differing speculative forces in the
market were an accurate index of the
conflicting views over the future
On the all-important question of the
revival of investment demand for Sc
curities some disappointment was felt
over the effect of the. New York City
bond sale, the success of which was re-
Sarded as a demonstration of the avail
able supplies of capital for safe invest
ment at attractive rates of return. The
general bond market. nevertheless, was
not stimulated by this showing. and
gave evidence of the opposing Influence
of the large inrOads on earnings of cor
poratiOns. especially of the railroads.
which have resulted from the contrac-
ton in business and industry,
In money some hardening tendency
was perceptible and raised the ques-
ton whether the limits of the decline
in interest rates had been reached.
Money Outlook.
b Bearing on the outlook, the state of
the government finances has come i'm
for discussion as they may affect the
money market next fall when the usual /
demand for crop moving purposes shall
set in. United States treasury opera
tons for relief at that time have come
to be largely relied on as an estab- |
lished custom. At present the condi- |
ton is complicated by the extraordi- /
nary measures of relief taken last fall. |
when all available government funds |
were placed on deposit with the nation |
al banks to stay the panic. The gov !
ernment's necessities now are involved /
by the large current monthly deficit in 1
the revenue and the maturity on Aug 1
I of the per cent Spanish war loan |
and later of the temporary certificates 1
put out by the treasury as an emergen- |
cy measure during the financial crisis /
Large Withdrawals of government de- /
posits from the banks seem to be in 4
dictated, therefore, as a necessity. and 4
n depletion of the usual resources of re- !
lief for the autumn money markets.
The moderate improvement in the I
demand for steel products has been ac-
by great dullness in all
branches of that industry. The cop
per market has been a center of de-
preston