The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-09-01
STOCK MARKET WEAK
FEW DEALINGS, EXCEPT IN SUGAR
AND PEOPLES GAS SHARES.
Most Securities Slightly Lower on New
York Exchangc-RevieNo of Week
Local Trade ia August

At New York yesterday money on call
closed steady at 1AQ11k per cent.
Prime mercantile paper was 4q4iz per
cent.
Sterling exchange closed steady, with
actual business in bankers bills at s4-S7%
for demand and sf.S4A for sixty days;
posted rates Sass and SASSY; commercial
bills. s4.Ss5.q4.Si.
Bar silver, 617sc. Silver certificates. SIG
s2zc. Mexican dollars. 4ss4c. AT London
bar silver closed steady at Is 7-16d per
ounce.
Except for some rather active selling OF
Sugar and Peoples Gas. there was not
particle Of animation in the stock market
Ut New York yesterday. The sympathetic
effect of the weakness II these two spe-
cialties wiped out the slight option gains
Ia some Of the international railroad stocks.
Again at the close there was sufficient de-
niand from the short interest which was
averse to leaving contracts uncovered over
the three days holiday to stiffen the price
of some of the railroads, but the general
tone was easy. owing to late drive against
Peoples Gas Among those to show no.
table frmness were Southern Pacific, New
York Central and Baltimore & Ohio The
weakness of Peoples Gas gave striking
illustration of the lack of consistency in the
minds of professional operators. The other
day this stock advanced on the report that
a newly organized company in Chicago was
IA control of interests friendly TO Peoples
Gas. The professional intelligence by yes
terday had arrived at the conclusion that
the formation of this friendly company
must be the signal for war upon the Ogden
Gas Company. the rival of the Peoples.
The stock was accordingly sold industrious
ly at an expense of 2Z in its price The
movement In Sugar was about equally i'm
portant for the news OF the day. and was
apparently due TO the rise In the advance
OF the refined product which was made on
Thursday. The part taken by the profess
sicnal element was based on scrutiny of
the source OF the orders in the stock, and
when the traders thought they could trace
selling orders to inside sources they trailed
on and Sold Tobacco and Brooklyn Tran
sit were weak during the morning, but
partly recovered later In the day. Chicago
Terminal preferred lost "a. Union Bag pre-
ferred. is. and National Steel preferred H.
Consolidated Gas advanced 1% on light
transactions. when the announcement was
made of the declaration of a quarterly divi-
dend OF per cent on the stock, thus re-
storing the rate prevailing before the recent
gas war. Pennsylvania suffered somewhat
from the effect of its statement of earnings
for July, the increase in net earnings on the
lines east of Pittsburg and Erie directly OPP
Grated being practically Offset by the de-
crease on the lines west of those points d.
rectly operated. The st. Paul & Omaha
also returned a big decrease In gross earn
handsome net increase in earnings for July,
all the coal roads have done. AS the
active demand for coal is factor In keep
ing up operating expenses of railroads gen.
orally other railroads did not respond
Money market conditions. consisting of an
easing of the London discount rate and the
promise of a strong bank statement to-day
The bond market was barren of incident
Total sales. par value. s635.00 United
States old tours declined Il in the bid price.
THE wEETrS TRADING.
Speculation has maintained its Indifferent
tone in Wall street this week. About mid
week there was a stiffening of the mar
ket and an appearance of awakened inter-
est. but 1t proved to be due to nothing
more than large demand from the shorts.
The determined abstinence of capital from
taking any part In stock operations causes
some gloomy forebodings amongst the pro-
fessional traders that the public interest in
listed securities has become permanently
impaired. There is no doubt that the whole
sale issues of new capital last year, the
methods employed TO push I'D prices of
some OF the new industrials to enable pro-
motors to realize handsomely and the SUBJ
sequent collapse OF those stocks made
costly experience for large speculative
contingent has impaired the confidence of
the general public in the values of securi-
ties However, IL is obviously only ques-
ton of time when the increment of capital
which has been large in the prosperous
period OF the last few years. must seek a
fixture in high-claSS securities. Owing 10
the present disparity of money rates here
and abroad. and the continuing foreign de-
mand for our merchandise products, there
Is an obstacle to the settlement OF the in
ternational trade balance In gold. In fact.
the tendency is TO still further extend the
foreign credits Oy export OF gold as pur-
chased commodity. To cover the reserve re-
quirements OF great foreign banks As for
eigners' needs for our own products con-
tfnue greater than ours for theirs and our
production OF gold makes US at the same
time the available source OF supply for that
metal there is felt pressure OF special in
dpcement TO American creditors 10 refrain
from calling home their foreign balances.
The higher money rates in Europe, which
caused a process OF international adjust
ment very like liquidation, may be not suffi-
GENTLY taken account of in seeking TO OK
plain the current dizziness of stock mar
kets High-grade American securities held
abroad found their way into American
hands. Bond dealers report a large home
ward movement Of such securities, which
must have been transferred through other
than stock market channels as no evidence
Is seen there OF large transactions. The
high rates for money abroad also tempt
American creditors 20 keep their balances
out in current loans. But these two pro-
cesses. although they have been largely
operative. have not aVailed to adjust the
disparity In money markets.
There are growing indications that for
eign securities will find an active market
in New York as a consequence OF this state
OF affairs. Already the American subscrip-
ton TO the British war loan and the sub
scriptioas 10 Russian railroad bonds by
American financial institutions form i'm
portant holdings OF foreign securities. Dur
Ing the present week overtures have been
made &c New York bankers 10 place loan
for the government of Sweden. and there
has been active discussion OF the estab-
lishment OF a department Of listed foreign
government securities the New York
Stock Exchange. IL Is considered inev-
liable that China must place a large loan
70 meet demands for war indemnities, and
American capital is expected 20 absorb
portion or such a loan. With these attrac-
fions for American capital In foreign fields
there Is coupled the continued reactionagy
tendency OF business and industry at home
which T. not ended by the appreciable m
s<erse in demand for iron and iron product
reported tnls week. The ultimate effect on
business and especially on railroad earn
fnss. OF the diminished crops remains to be
defined. Thus far gross earnings OF rail-
roads are wei maintained by the close OBJ
servance OF freight rates. but the state
n1rnts OF July net earnings. out this week.
show the increasing effect upon operating
expenses OF the high prices for material.
especially steel rails and coal and wages.
The hnucward course from Etropo OF sew
eral men influential In past stock market
movements aroused hopes among proses-