The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-12-19
BlIRDENsoME INvEsTMENTs.


values of this class of securities in the
days trading.
BURDENSOME INVESTMENTS.
1t is to be noted also that the very heavy
commitments of capital TO the trust form
of enterprise itself and its incursions on
the banking field have aroused much dis
cussion- 1t has been obvious for many
months past that a great deal Of money
had been locked up by capitalists in those
new industrial combinations, which were
becoming burdensome TO carry, by reason
of the heavy demands for money in the
regular channels, the large absorption or
funds by reason Of the governments sur
plus revenues, and the urgent needs or the
London money market. growing out OF the
Transvaal war. Last weeks threatening
situation in Boston was the outgrowth of
the burden of copper stocks. Thus it was
that the trust company failure to-day.
coming on last weeks events in Boston,
aroused the fear that the suspected class
of securities were the point of succumb-
ing to adverse influences. In the effort to
protect these securities others were also
involved, including some of the most sub
stantial stocks on the list. The fall in
added to the weakness with cumulative
force, by reason of the shrinkage in the
value of collaterals.
Before the concerted relief by the clear
ing house banks the money rate leaped to
so. 20, 100 and according to the official rec
ord, 125 per cent Credible reports assert
that 1s6 per cent. was paid for money dur
ing the day. The official record of such a
transaction was lost in the excitement.
An idea of the severity Of losses may be
gained from a few specifications. Thus
American Tobacco fell an extreme 211z;
Metropolitan, 2O14; Peoples Gas. IA; Sugar.
1215; Continental Tobacco, 11ls: Tennessee
Coal, II; Manhattan, 9. and Leather pre-
ferred. 914; all in the list of industrials. In
railroad lists such stocks as Northwest,
New York Central, Great Northern pre-
ferred. Southern Pacific. Union Pacific,
Northern Pacific, Atchison preferred, and,
in fact, the most prominent and active
railroad stocks in the whole list showed
losses all the way from four to nine points.
The rallies following the fall of the money
rate to per cent. ran from five to ten
points.
rhe days transactions ran up to a total
of nearly 1.650,OO0 shares, which is the rec
ord for a days business. The excitement
was intense all day, and there can be no
doubt that large volume of transactions
and record of many quotations was en-
tirely lost in the seething and turmoil of
brokers and operators, which surged over
the floor of the exchange and about every
post all day long. The changes in prices
between sales ran up to one, two and even
three points, both on the downward grade
and In the recovery.
After the close Of the exchange there
was a meeting of the clearing house COM
mittee to concert further measures for the
safety and relief. An issue of clearing
house certifcates was discussed. but the
bank prcsiderns press.. decided that it
would not be advisable at present A
meeting of the clearing house committee
was called for IL o'clock tomorrow, with a
view to being prepared for action in case
Of further necessity.
The Generalization in stocks affected the
bond market more or less, but losses were
largely confined to the lower grade issues,
which have been subject to speculation.
The volume of investment issues brought
on the market is yet small.