The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-01-20
MIXED VIEWS AS
TO THE OUTLOOK
increase of Activity in Stock
Market, but Very Irregu-
lar Movement of Prices.
BANKS NOW ON THEIR FEET
TRADE is RECOVERING MORE
SLOWLY.

New York, Jan. 19.-Last week saw
considerable increase of activity in
the market for securities but the ir-
regular movement of prices was a re-
hecton of the conflicting influences tt
work. The most effective of these had
To do with the technical position of
the market itself, but there grew up
mixed views as well regarding the gem
eral outlook FOR affairs as between the
rapid restoration of normal banking
conditions on the one hand and on the
other the accommodating evidences of
the extent OF the reaction in industry
ana business and the results to be
expected in the earning power of prop
efues with securities listed at the stock
exchange.
The disclosure of the establishment
OF a comfortable surplus of reserves
above the legal requirement made in
tne bank statement of the previous
week served TO quite effectively allay
apprehension over the money situa-
tloh- The release of funds which had
peeh held back from banking reserves
10 await this showing proceeded in a
strong flood, and interest rates on loans
OF ali kinds declined in a pronounced
manner in all markets, both here and
abroad This development had been ac-
eurately fOreseen by the speculative
element in the securities market. and
previous purchases had been made to
take advantage of the new outside de-
mand, which would be stimulated by
Inc increase of money facilities for use
ln stock operations. There was. in
1act. considerable accession of out
side demand for stocks through COM
mission houses, but the sales to real
ize profits by the powerful speculative
party who had been pursuing organ
lied operations in the previous market
served as material offset to this de
mand.
Funds for Mercantile Needs.
The first and most important relief
afforded by the pronounced relaxation
of the money market has been in the
facilities afforded for strictly mercan-
tile needs. Anxiety on this point has
practically passed away. The quick re-
Spouse of stocks of railroad equipment
companies to the news OF the sale of
$50, 000,0 600 New York Central Eduip-
ment Trust notes. the proceeds of which
are 10 go for payment of equipment
already delivered, was significant of the
feld and extent of this anxiety. The
sale of these notes was made much of
as proof of the restored confidence
of capital and its willingness to seek
renewed investment in corporate ex-
pen5itures This impression was modi-
fed by the terms of the sale. which
was on an investment return of 81 TO
SIS per cent, with a marked preference
for the series OF notes with the longest
term 20 run.
The reported terms of sale of 81, 500. =
600 of Consolidated Gas 1-year 6-per
cent notes on a 7-Der cent basis was
additional evidence of the continued
high attraction still considered neces-
sary 10 secure new capital.
Treasury Needs Money.
In the more immediate money situa-
ton consideration is given to the i'm
minent necessity for the United States
treasury TO draw from the deposits
with the national banks To replenish
its working balance. which is depleted
by the growing deficit in the current
revenues. a demand by the national
banks towards the retirement of note
issues is gaining force with the heavy
return of cash to the country. The
move to establish twenty-five reserves
with the admission of New York trust
companies to the clearing house. if
pursued, will call for an accumulation
of cash estimated at $50 600 600 The
question of gold exports is brought for
ward by the sharp rise in foreign ex-
change toward the end of the week.
Ii is pointed out also that, while the
easing of the money market has re-
suited i'm a rapid retirement of perhaps
half of the loan certificates issued by
the New York clearing house, there is
an important residue of these instru-
ments which were issued for the re-
lief of trust companies. whose retire
ment may be delayed by the character
of the collateral securing them, which
is slow 10 be marketed.
Contraction of Trade.
Much the most important cOntending
influence against the growing ease of
the money market is the evidence of
trade contraction and diminished prof
its. Railroad traffic has fallen to a
low ebb, and the American Railway as
ISOLATION estimates 207, 900 freight cars
idle in the country Heavy decreases