The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-01-06
DIS|NCLInED TO
LOOK BACKWARD
People Generally Disposed to
Keep Their Eyes on Better
Times lust Ahead.
MONEY SITUATION EASIER
TIDE TURNED WITH ADVENT OF
NEW YEAR.
MONEY SITUATION EASIER

New York, Jan. 5.-The opening of
the new year sees a disposition reflected
in the financial markets to turn from
the contemplation Of mournful yester-
days and TO look forward with hope and
confidence in the future. The convic-
tion is firmly based that decided i'm
provement is ahead. but this conviction
has been tempered by some anxiety
over a possible remnant of unpleasant
consequences of the financial crisis yet
to be gone through. A special field of
uneasiness was the provision for the
annual settlements in the money mar
kets, which were unusually heavy,
while the resources OF the money mar
ket. although rapidly improving, were
still much impaired. The smOOthness
with which the turn Of yesterday was
effected went far to encourage senu-
ment and To establish confidence that
steady Improvement in the financial
position was TO be expected hencefOrth.
The call money rate did not get higher
that 20 per cent, which compares with
maximum of 45 per cent in the cor
responding week of last year and 125
per cent in the year preceding.
Funds in Loan. Market.
Still more significant of the growing
improvement Of the position was the
rapid dwindling of the premium on
gold, which signalized the first business
day Of the new year. So long as the
premium persisted an unsurmountable
obstacle remained to the re-estabiish-
tdnent of normal banking position.
The London market was so far reas-
sured by this development that a rapid
decline ensued in the London discount
rate and the Bank of England was
constrained on Thursday TO mark down
it's official discount rate from Z per
cent to 8 per cent in order to avoid los
ing touch with the money market. The
per cent bank rate was the signal OF
continued distrust i'm the outside world
of the American position, and its aban-
donment marks the return of faith IN
the passing of our crisis.
Gold Premium Dwinding.
In New York additional funds have
appeared in the time loan market, and
business in that department has taken
on some degree of activity. although
interest rates continue high. Growing
demand for high grade mercantile pa
per also offers promise of relief from
one of the most threatening sources OF
embarrassment to some. growing out of
the heavy maturity falling due in that
department from time to time. The
shrinkage in buying power which has
gone with the financial upheaval, the
slowness of collections and the strin-
gency of the money market, which Of
Tered small prospect of adequate accom-
mediation for the extension of needed
credits, threatened a combination of
circumstances from which disastrous
consequences we're dreaded.
Credit pvnprfC in Now York hanks
are more hopeful of needed accOmmo-
datiOn being forthcoming to facilitate
the process of liquidation, which is a
recognized necessity, to some extent, in
commercial affairs. and which 1t is now
hoped may be conducted with delibera-
ton and good order. The publication
of the bank statement at the close of
the week disclosed the free inflow of
currency TO New York for the week
This development is of the utmost inn
portance as marking the passing of the
feeling of distrust of the New York
banking position and promising rapid
establishment of the normal position.
Unfavorable Factors Overlooked.
1t thus happens that the financial
markets have been disposed to ignore
some immediate unfaVOrable factors in
affairs. cheered by frightening financial
was afforded in the stock market of the
first day of the new year. There con-
verged on this market news OF the ap-
pointment of received for the Sea-
board Air Line railway and reports
from Washington Of an intended suit
by the government to compel disSolu-
ton of the Hartman railroad merger. I
The market wavered under this shock
but the effect was temporary. and a
Of the day. The course of railroad
earnings reported was another restrain 4
ing factor on immoderate enthusiasms
on values. Several of the great railway
systems, including notably the Atchis-
on and the Pennsylvania, showed d
heavy inrOad on last years level of net
earnings in the return for November.
owing to the heavy expansion of oper-
ating expenses. Railroad traffic Off
Gals i'm reporting on the more recent
course of traffic. make candid acknOwl-
edgment of the rapid shrinkage in the
movements Of merchandise of all des-
criptions except grain and of their in
ability TO discover an early improve
ment. The professional speculative con-
tinKent about the stock exchange har-
bors a certain amount of suspicion of
the rise in prices as being due possibly
to fostering measures by bankers and
capitalists of large resources with the
design TO afford a more favorable basis
for the completion of some desired liq
udation when the expected relaxation
in the money market may cause some
demand for securities.
The bond market is scanned with
some attention and interest from day
to day to detect evidence of a renewed
flow of floating capital into investment.
Some increase of activity was discover
able last week but the demand was
moderate. in spite of the large disburse- /
ments for dividends and interest to sup /
DIV a fund for reinvestment.
Nell-screened. clean Castle Gate, /
Clear Creek. Winter Quarters mt and |