The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-06-15
OUTLOOK GOOD
FOR THE FUTURE
Stock Market Stagnant, but
That Is Usual in Summer
Season.
POLITICS CUTS BIG FIGURE
SPECTATORS AWAITING PLAT
FORM DECLARATIONS.
POLITICS CUTS BIG FIGURE

New York, June 14.-Until after the
middle of last week the stock market
was in a condition of stagnation, and
-rTie duh resistance of prices while this
lasted and the apparent absence Of
selling pressure, in spite of the leth-
argy of the demand, was taken as a
good augury of the technical con-
dition OF the market.
A change followed the announce
ment OF the plan for funding the Erie
bond coupons and the closing of sub
scriptiOn TO the Union Pacific bonds.
and acute weakness developed. The
approach of the convention period for
the great political parties has an in
fiuence in suppressing speculative ac-
tivity, owing To the traditional belief
in the tendency toward d waiting at
titude in the general business world
during the progress OF a rational po-
Htical campaign.
Beside this general consideration
making for dull markets. there We're
a number Of incidents in the week :
events having an important bearing
on the shaping of the future. First
place in this respect is accorded by fl
nancial opinion 10 the cut in prices Of
steel products, which was formally an
nOunced through the officials of the
United States Steel corporation. The
abandonment of the policy of rigid
maintenance OF prices of steel products
in face Of the prOstratiOn Of the con-
sumptive demand meets common ap-
prevail in financial circles; where in
deed, the policy has been the subject
of Varyin- criticism for months past
The opinion expressed doubts of recSg-
nized trade authorities as to the suffi-
cheney or the efficiency of the cut 10 re-
Vive active consumption and ac-
count for the depressing effect which
has followed the announcements. Con-
sumers are reported to be stin holding
off i'm the conviction that further re-
auctions must be conceded and such
further concessions are alleged 10 have
been made by Important independent
interests Of steel bars. The prospect
of wage adjustments to meet the re-
duction in prices realized for steel pro-
ducts and the danger of wage cOntrO-
versies with the cOmplicating factor of
the political campaign are not relished
as possible speculative factors.
Uncertain Policy.
Another weight on the market was
the uncertainty over the market policy
to be pursued by powerful financial in
teTests when the Union Pacific bond
fiotation was once fairly concluded.
The importance attached to this trans
action was the OutgrOWth of the pop
uiar assumptions of the extent of the
preceding market activities designed
TO lead up 10 and foster this tiOtation,
assumptions which attributed almost
the whole of the operations for the ad-
vance for many weeks past to those
sources.
The assistance proffered by the head
OF the Union Pacific system TO the
Sc
note at a time when a reCeiVeTship for
that railroad seemed inevitable was
supposed TO be directed toward the
same general purpose of conserving
confidence for the purpose of further
ing plans for needed financing of other
railroad projects. The closing of tho
subscription lists for the Union Pa
cifc bonds and the plans for funding
the interest on the Erie bonds in view
of the admitted insuffiCiency of earn
ings TO meet that requirement, were
announced simultaneously. and gave a
sinister impression of a patching up
and tiding over of an embarrassing sit
uation while the new capital fiOtatiOns
were being effected. The apparent alb
sence Of previous supporting measures
in the stock market after these an
nOuncements added to this impression.
General conditions show progress
toward recupeTatiOn, and confidence on
that side of the situation has grown.
The government crop reports as of
June l has a reassuring effect, with
a promise of a wheat crop estimated
at average. Mercantile lines report
moderate expansion and the reduction
OF % 000 in the number of idle freight
cars for the two weeks ending Ma
, was counted as accurate index of
better traffic conditions. Money con-
tinues 10 accumulate in all the great
reserve centers Of the world. with a
resultant downward tendency of inter
est rates. The money market at New
York was unaffected by the continu-
ance of gold Withdrawals for export,
by the expectation of a further call
for repayment OF government depOs-
its. and by the accumulation by the
trust companies in preparation for an
additional reserve requirement. which
becomes obligatory on July /.