The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-12-05
CAUGHT in THE SUGAR
BULLS WERE SHORT AND THE
BEARS REAPED A HARVEST.
whole Securities Market Affected by
the SIump-LOcaI Trade Improved
with Weather.

At New York yesterday money on call was
steady at iaps per cent; last loan, 4 per cent.
Prime mercantile paper. 4d4A per cent
Sterling exchange was steady, with actual
business In bankers bills at AS5A for demand
and $4s1ss for sixtv lays; posted rates. a-s21s
and y.sslz. commercial bills, A.SOha4slA.
silver certificates were s4G65c: bar silver.
Sic: Mexican dollars. 501sc. Bar silver was
20 i1-isd an ounce In London.
A favorite paradox in Wall street is that a
surprise is always expected in Sugar. In tie
pursuit OF their professional vocation stock
traders are always trying tc discount what they
expect. and the consequence Is that in Sugar
they az invariably surprised and disappointed.
Yesterday was no exception Acton on the
quarterly dividend has been looked for at any
time for several days past, and the news as
to what the dividend would be has varied all
the way from an increase in the regular rate
from IA to . per cent. and up to the regular
IA and an extra disbursement of 2 per cent.
The speculation has gone ON right merriiy on that
basis. The price was run up to 1854 yesterday
morning. when the intimation was dissent
mated that no action would be taken on the divi-
dend during the day. Consequently the an
nouncement a little later that the directors had
met at the private residence OF the president Of
the company and declared a dividend OF only
IA per cent. came like a bombshell on the spec
uIatfve contingent. In their rush to save losses
they forced the price down by rapid stages.
meeting no support except from professional
shorts on the way down. The STOCK touched
127A in the last hour. which was eight full
points below the highest, and closed with a net
loss of 6s. The violent slump in this stock had
a depressing influence on the whole market. but
the movement elsewnere at no time approached
Generalization In fact, there Were points OF
strength p~ersisting here and there iE the rail-
road list. notably the Erie stocks ard in the
low-priced Southwesterns. but these yielded
their gains in the late reaction. In the early
dealings the principal weakness was shown by
the spectalties. and especially the steel stocks.
The latter group showed good recoveries. and.
except for Tennessee Coal. he'd well I'm the lato
weakness OF the railroad list. The pressure to
sell the railroads grew steadily during the latter
show net losses OF about a point Chicago. Bur-
lington & Quincy declined i%. The general
weakness. while partly due to sympathy with
the violent decline IN sugar, was undoubtedly
based for the most part On anxiety as 10 the
ability OF the money market TO carry speculative
accounts safely over the new year. There was
no evidence that liquidation was forced. but a
spirit Of cauticn prevailed and induced measures
90 Svoi6 anything like forced Ii1uication in view
OF the large advances in prices which the mar
ket has enjoyed. Owing 10 the renewed move
nnent OF currency TO the interior and the present
low level Of pension disbursements, the SUBJ
treasury has already taken up from the money
market nearly 5000 600 since Friday. TUESDAYS
Orleans. were 100000. compared with $3.50. 900
Monday. Another noticeable feature OF the sit
ustion Is the steadiness Of sterling exchange.
In spite OF the nrmness OF the local money mar
ket and the notably easier rates in London ana
Berlin The foreign selling OF our securities.
which was continued yesterday TO the extent OF
about 300 shares. Is supposed 20 account for
this In this connection the days reporr OF a
further shipment from Australia to San Fran
cisco OF $i.500.00 IN gold has some Significance
The bond market shared in tie reacfionsry
tendency Of the stork market. but was varied
oy new points or strength. Total sales at par
value We're SS.ooo.eo- United States new fours
advanced \ per cent. on the last call.
Following are the days share sales and the
closing bid prices: ~