The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-07-21
HEAVY SALES OF SHARES
THE WEEK CLOSES WITH VERY
PERSISTENT LIQUIDATION.
stocks at the Lowest, Except In a Few
Instances-MOney Market Condi-
lions Are Much Improved.

and carried prices down through the at
temps of the inside interests in certain
stocks TO support the market. The closing
prices were near the lowest, and the
market was active and weak at the last.
The only modification of the weakness was
due to the buying to cover and take profits
by the bearish traders, who saw handsome
profits accrued as a result of the decline
late yesterday and to-day. These bearish
operators have been supposed by Wall
street TO be resident chiefly in the West,
and to be concerned in bulling grain as
we'll as bearing stocks. The feeling gained
force in Wall street to-day hat this double
campaign has more basis in fact than was
believed yesterday, and the Western con-
tingent received large reinforcements from
Eastern sources. The supporters of the
market made Roadway against the bears
in the first hour, when vigorous efforts
were made TO drive the bears to cover.
There was a resumption of pool operations
IN Southern Pacific, and that stock, as
we'll as st. Paul and Missouri Pacific, were
lifted well over last night. Aggressive
selling by the bears Immediately developed,
based on the reports of new damage to
the corn crop and reports of extensive dam
age to the spring wheat crop, now first
needed in Wall street. Another attempt
was made TO rally the market on the
strong bank sta tement in which a large
loan contraction co-operateG with a sub
stantial increase in cash TO recuperate the
surplus OF The banks. However, higher bids
for stocks brought out such large offerings
that the bulls were obliged to desist. and
prices fell by rapid stages practically up to
the close. St. Paul fell 4 points under last
night, Rock Island Az, Northwest 3,
Atchison SIS. the preferred 2l, and others of
the Pacific and Southwestern groups, as
we'll as leading Southern and trunk-line
railroads and specialties from l to 2 points.
Some of the less prominent stocks showed
large losses. The United States Steel stocks
were largely dealt in, but moved narrowly
and were well supported. the common los
ing only Il and the preferred closing Is
higher.
This week opened with a deluge of liqui-
dation of stocks induced by the unlocked
for rupture of negotiations and calling of a
strike by the members of the Amalgamated
Association of Iron, Steel and Tin Workers.
The shutting down of some of the anthra-
cite mines on account of a firemen's strike
was also a depressing factor. Coming on
top Of last weeks. severe declines and the
resulting losses and impairment of margins
and resources, serious consequences were
threatened by this renewed generalization
in the stock market. The realization of this
was apparent in the effective measures
taken 10 support the market by the two
AONPo - 49, 4NoA
rel precipitated the Northern Pacific corner
and the May panic. The mere fact, which
was made patent to the speculative public,
that these two powers were united in sup
port of the market afforded immense re-
lief to sentiment. The acute depression of
the week before was principally due to the
evidence of selling on behalf of one of the
interests of the various stocks and TO the
fear, to which this gave rise. that the
Northern Pacific quarrel had broken out
afresh. 1t was evident that no vague init
nations ana assurances that all was mar
mony would avail to quiet the disturbances
caused by this fear. The decisive step was,
therefore, determined upon of announcing
the new harmony board of directors for
Northern Pacific. This step was admittedly
taken with a view TO stock market exigen-
cies and TO lessen the pressure of liquida-
ton which was proving detrimental to
many important financial projects and de-
pressing prices to a level felt to be unwar-
ranted by the promise of the future of sus-
tanned and increasing earning power. Early
knowledge of the coming announcement
was clearly apparent in the enormous buy
ing all through the list by insiders on
Wednesday, although it was not until just
before the close that the announcement was
given TO the public.
One of the detrimental effects of the
slump in American stocks was its unset
Ting effects on the London stock market,
where a f~ortnightly settlement was in prog
Iess. 1t is a striking example of the new
Importance and Influence of American
financial affairs that a decline in the shares
of an industrial corporation in New York
should result in a drop in British cOnSOlS
to the lowest price in a decade. The i'm
mediate explanation is found in the fact
that the course of United States Steel stocks
aroused diStrust among London bankers,
and money was difficult to secure for the
carry-over on those stocks. In fact. Amer
lean securities, as a whole, were somewhat
affected, so that even discount rates hard
ened during the tendency of the settle
ment. Heavy blocks of United States Steel
stocks have been placed abroad as the re-
suit of the recent foreign visit Of the fore
most capitalist IN the corporation syndicate,
but they came back in a stream this week
as a result of the strike. The drop in con-
soils was supposed to be due to large
offerings by the American syndicate, which
1t will be received a liberal
allotment of the last issue. This opera
ton was naturally resorted TO as an offset
in the international exchange market to
the selling in New York by British holders
of American securities. The impression pro-
duced on the London market. which led
10 something resembling a public remon-
STRANGE from Lord Rothschild on Monday.
was doubtless an additional motive to-
wards the action taken to support the mar
ket and check the decline. 1t made it evil
dent that a part OF the heavy liquida-
for supporting the market, which it was
foreseen would be necessary this week.
The moral effect on the strike situation
of q rally in the United States Steel stocks
In face of the strike was doubtless con-
sidered also by the capitalists interested
in that corporation. The closing of the
! III StINlCl1tnl WIS IuuS HAS
tened and published Wednesday evening.
Money market conditions have been easier
as a result of last weeks Important lidui-
dation. and the government operations
through the subtreasury have made i'm
portant contributions to the money market.
The disposition of bankers. however. is still
toward rather cautious conservation of re-
sources for the requirements of the crop
movement. The breaking of the drought
in the corn belt relieved the fears OF abso-
lutte disaster there. but in the same measure
the promise of prosperous conditions is seen
TO involve an active interior demand for
money in the near future. There persists
| also the underlying influence of a proba bly,
prolonged contest in the steel trade. in
volving nonproduction and consequent re-
4 duction of demand which would otherwise
result from the wages and profits thus dis
continued.
Railroad bonds have moved in sympathy
with, but less widely. than stocks. United
States %refunding twos, the threes and the
old tours advanced Il. and the new tours
fell Il per cent. below the closing call of
LAST week.
Following are the days share sales and
Closing
Stocks. Sales. Bid.
Atrhison So. 400 717s
Atchison pref .......-.-.--..--.--. 10000 s44s
baltimore & Ohio ................... 300 96
baltimore & Ohio pref .......-.-.-- 100 90
Canadian Pacific .......t-...-..-. 400 1854
Canada Southern -.......s-.----.-. 100 t66le
Chesapeake 4 Ohio ........-.......- 400 -
Chicago * Alton ACKNOWLEDGEMENTS. 800 36s
Chicago & Alton pref ..-.-.-.......- 100 1914
Chicago. Ind. * Louisville $4,000. 600 30