The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-06-25

argues that the market is due for a rally
owing 10 the existence of a large de-
hciency in wheat, which would be obliged
TO cover at any considerable advance in
price. This element points to the fact that
the prices of many stocks have receded
now below the level touched in the panic
OF last December, and have. therefore.
amply discounted the unfayorable factors
In the situation. An aggressive leader
ship. they argue, would precipitate a
bear panic. But that the bull leader has
dribbling of LIQUIDATION into the market
has shown clearly enough that holders or
stocks are inclined TO sell rather than to
increase their holdings.
A RULE OF AVERAGES.
1t is the almost invariable sequence of
such a panic as that of last December that
prices. after a violent rally on bear cover
ing. during which most those who bought
TO check the panic realize their profits.
begin 10 shift slowly downward again to a
point below the panic level. That phase
was deferred after the December panic by
successful bull manipulation, accompanied
by confident predictions, sometimes with
semi-official sanction, of liberal dividends
on stocks hitherto not sharing in their
company's profits or large increases In
| existing dividend rates. Some of the adj
vances in prices of stocks thus secured
are, in large parts, still maintained, al
| though the predicted dividends have never
been declared. The action of the Northern
Pacific directors in reducing the amount OF
the dividend has led 10 the general adop-
ton amongst railroad authorities OF a
similarly conservative policy. Even where
the increase is made, as in the case OF
Atchison preferred, ii has led 10 so much
unfavorable criticism that the STOCK mas
failed TO benefit in price. The develop
ments of the week in the wheat markets
thn fhaFa VIII
be a deficiency in the wheat crop and un-
e~asiness has increased regarding the co.,
ton crop.
stock market has diminished to insignin-
canoe. but the movement of money markets
and the semi-annual settlements TO be met
on July / are a growing source OF appre-
hension in security market circles. bernh
has borrowed heavily of New York capltai
for some time past, and this mas served U
encroach on the surplus reserves OF new
York banks by expanding the reserve re,
quirements. This week Germany mas ADDED
to her demand for credits a call for bullion
TO replenish her own banking reserves In
| preparation for July l. The Bank OF france
also continues TO accumulate reserves ana
to reduce note issues and loans as though
in preparation for a storm. Tn result mas
been a stiffening of discount rates In Lon
don and an advance of one penny an ounce
in the Bank of Englands price OF soio pars
and of American eagles. The large pay
ments for pensions by the subtreasury have
tided over the situation in New York this
week, but next week the banks nave TO
meet a call for $50 600 of government de-
posits to be returned to the treasury, and
afterward the demands incident to prepara-
ton for the July / interest and dividend dis
bursements. with the prospect of a resump-
ton of interior demands for FUNDS 10 move
the crops. The active speculation in wheat
also makes additional demands for loans.
There is not much likelihood, however, or a
pressure of idle funds TO stimulate a slug
gish stock market.
The bond market has moved irregularly
toward a lower plane of prices. United
States new tours have declined n and the
old fours. the fives and the ~refunding twos
when issued Il in the bid price.
Following are Saturdays share sales and
the closing bid prices: