The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-04-06
STOP PUT TO THE
RISE. IN PRICES
ReactiOnary Tone in the Secur-
tiles Market Painfully
Evident.
MANY REASONS ASSIGNED
ERIE NOTE ISSUE AN UNSET
THING FACTOR.

New York. April 5.-A reactionary
tone was evident in the securities mar
ket last week. How far the change
i'm speculative sentiment was caused and
how far-reaching the effect of this check
to the previous advancing tendency of
prices is difficult tod iscern. Some
explanation of the reaction is found in
the extent to which the advance had
run, a process which would necessar-
lily in course of time reach a limit
in attaining the level which it was
lnaugurated. Not only this, but in
accordance with the invariable rule
of speculative movements. it would be
expected TO overrun itself and be af-
fected by the realization OF holders
who had overstayed the movements
and felt no disposition to hold during
a possible decline.
Crop Outlook Considered.
Increasing attention is centering on
the crop outlook since decisive influ-
ence is expected in the shaping of the
future from the years field. The con-
dition in which the planted wheat has
come through the winter is considered
hopeful, private authorities of accept
ed responsibility agreeing in estimat-
ing a high percentage for that crop
The publication on Wednesday of this
week of the agricultural department
official estimate Of the condition on
April l will be an important basis of
reckoning for this vital question.
Erie Note Issue.
Opinion on the financial situation
was shaped by the long drawn out
struggle to adjust the difficulties con-
ffTaer ~
ance was made for the peculiar condi-
tons which aggravate the troubles of
the Erie, but this did not prevent I'M
favorable inference regarding the in
VesJment situation to be drawn from
the Erie's case. The discount inter-
est price of the maturing Erie notes
shows the excess of the difficulties of
that company in providing for floating
Nevertheless, in a list of
more than two score of note issues by
railroad and industrial corporations ma
turning at various periods up to four
years. the prices at which they are SELL
ing show varying discounts in nearly
all cases, and this although the rate
OF interest return is well above the
prevailing interest rates for time loans
in the money market. Prospects for
the absorption of new issues of securi-
ties are poor from the indication fur
nished by this showing.
Financial Conditions Abroad.
The same conditions are reported in
foreign financial centers, where the ac-
emulation of banking reserves and
easing rates for money seem to afford
small advantage for flotation of new
issues. The heavy issue of German
and Prussian loans proved discomfort
ing to investment markets in all the
great money centers abroad Foreign
exchange in New York, in consequence.
has moved in a way to suggest a COM
ing outgo of gold. The course of the
United States governments revenues
makes it evident also that large further
of government deposits
rom the banks are imminent. The
is expected to fortify itself /
lot only against requirements for gov /
expenditures, but also for the |
customary aid TO be extended to the |
money market in the fall, when the
annual crop movement requires an ex-
'ansion Of facilities. The money mar
ret itself is quite uBdisturbed by these
prospective requirements, but the tran
Iuil money market fails to afford any
to the investment demand. |
ither for existing issues or for pro- |
'osed new capital issues