Salt Lake Tribune | 1913-06-15 | Page 33 | Financial Review

FINANCIAL REVIEW. Violent Decline Early In Week, With" Recovery Later. NEW YORK, Juno 14. The most vio-. lent decllno In stocks of the year, followed fol-lowed by a recovery almost equally as rapid, made tho week a turbulent one in the securities market. Pessimism . had prevailed for months in the financial district. dis-trict. Quoted values had fallen steadily until manv leading stocks were 15 to 25 points below the high figures of the year. World-wide money tension, tariff legislation, legis-lation, a railroad receivership, European soiling of American securities, evidences of contraction in some lines of business, all tonded to Increase the weight under which the market was staggering. Then came tho supreme court decision In the Minnesota rate case, which Wall street hastily construed as decidedly unfavorable unfavor-able to the railroads. That a reaction should have followed was to bo expected in tho usual course of affairs, growing out of technical market conditions. But tho extent of tho reaction, reac-tion, and tho continued strength shown throughout the remainder of tho week made it evident that a change In sentiment senti-ment had at last come over tho financial finan-cial district. While it is recognized that unfavorable factors still persist, there is temporarily, at least, a more hopeful fHaslily-drawn conclusions regarding I ho Minnesota rate decisions were modi- fried on second thought. The distinct Improvement Im-provement In tho political situation abroad helped to bring about a change In sentiment. There wero indications that a plan for dissolution of the Harrl-man Harrl-man system would be officially approvod In the near future. More important Btlll was the change in tho money market. It has been recognized recog-nized for months that the monetary situation sit-uation the world over was the chief degression de-gression of the securities markets and the more liberal offerings of money by leading banks was of direct effect. Largo amounts of commercial paper were absorbed and freer offerings of time and call money resulted In n relaxation of rates. Secretary McAdoo's announcement announce-ment that he would approve the Issuance of emorgency currency was of vaJuo chlcflv for its effect on sentiment. In spile of relaxation the financial outlook out-look In Its broader aspocts was llttlo changed. Tho situation abroad was un- I relieved. Banks were Mill reluctant lo place lonns wxcent fof short periods, and continued to pile up rcBcrvos lor the crop-moving season. Prospective bor-