The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-05-28
FUTURE BASED
ON GOOD CROPS
Stock Market Unsettled. Owing
to the Reduction in the Price
Of Steel Bars.
SPECTATORS UNABLE
To F0RETELL RESULT
Banks of the Leading Cities
Reported as Having Millions
of Surplus on Hand.
BY RALPH EMERSON.
'ascd Wirc 10 Tho Tribune

| BY Leased Wire 10 The Tribune
NEW YORK. May 27.-Onc OF the most,
| Important single incidents in tho market
| This week Was the steel trade episode,
| WITH its reduction OF So a ton in the price
| OF steel bars and the declaration OF an
open market by one Of tho leading indie
| pendent concerns. Ii injected into the
stock market and business stuatio a
very unsettled influence. This occurred
at most tnopportune moment for en-
thusiaSm for the bull movement in stocks
was beginning TO cool. Prices had ad =
vanced from 4 to S points in leading
shares and had also reached the highest
addition to market values OF approNim innate
ly SlI5,00o. 600 in stocks daily trading.
This appreciation was attended with con-
siderable broadening OF operations and
large interests which for long time had
not experienced any opportunity 10 de-
crease their holdings In material volume
naturally took profits on an extensive
scale. Thus the steel cut came at the
very moment when the technical position
OF tho market had been weakened. Steel
common fell points from last weeks
highest level and the whole list went off
with ii.
Result Is Uncertain.
Just what the result is going 10 be
either in business way or on the stock
market cannot be forctold at this time
Fortunately there arc such offsetting in
cidents as favorable crop conditions and
cheap money which arc important funda-
mentals for recuperation when the pro-
cess Of readJuslment through which the
country is now passing shall nave been
finally completed. Time money pract
caly lost the slight advance that fol-
lowed the market activity OF last week.
The oapks Of the leading cities arc in
very plethoric condition, one here holding
no less than s75, 900. 900 In cash. which
means that the crops will be moved and
the business Of the country this year con
Quoted on a lower basis OF interest rates
than last year. or for many years past.
II is the popular idea that the present
cheapness OF money is the result solely
of decreased speculation and trade ro
action. Such however. is not the case.
as the movements OF gold have been play
ing considerable part in the situa tion.
This is shown in the last foreign trane
statement Of the government, which re-
ported an excess OF gold imports over en-
ports for ten months Of Sol, 200. ooO.
whereas in the corresponding period OF
excess OF gold exports Of $50. 600. ono. The
product OF oul mines for ten months was
about $50 900. 900 Thus Sl35 900 has
been added 10 our gold supply. which is
q basis for over 5000 600 900 bank loans.
Crop Situation Encouraging,
The crop situation in the main is high
~ encouraging, although few draw
backs were developed during the week.
Lack Of rain in northern Texas, western
Kansas and Oklahoma caused some dam
age 10 winter wheat. but elsewhere the
plant is making rapid growth. Gathering
of the crop has already started in south
crn Texas and tho harvest Inc VIII move
steadily northward from now on. The
position Of spring wheat in the northwest
Is still brilliant and estimates of yield
OF 200 600 000 bushels are now being made.
Some good trade authorities arc OF the
opinion that the government renort next
Friday will show close Ia S5 per cent and
3o 600 00n acres under cultivation IN cot
ton. Such condition would represent an
increase OF 4 per cent over tho ton-year
average.
The recent hot spell was Of great hsn-
eft 10 the retail trade OF the whole coun-
try. There has been a widespread dis
iribution Of merchandise, thus relieving
previous apprehension that even the con
serNation purchase of merchadise for the
spring and summer trade might become
burdcnsome. This is very important
change in the situation, as II has already
led mp 10 some rcplcnishinG OF stocks.
thus creating more hopeful feeling in
wholesale trade circles.
Business i'm the west has hoen better
Than i'm the east and the bright prospects
for The grain crops are creating more OPP
tlmIstic feeling in the producing regions