The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-05-10
BAD TWIST ON CHANGE
SQUEEZE IN NORTHERN PACIFIC
PRECIPITATEs \ PANIC.
While that stock Jumps to 1000, 9th
ers CrumbIe Away Five to sixty
Points-LOcaI Trade Checked.

At New York. yesterday. money on call
was strong at 6d6O per cent; last loan, 90
per cent; ruling rate, so per cent
Prime mercantile paper, AZ per cent.
Sterling exchange was steady, with
actual business in bankers bills at Si.S7ssH
4.S79s for demand. and A.S4A@4-Si2s for sixty
days; posted rates, $iS5Q4S5E and Si-sSls;
commercial bills. s4.S31za4.Si.
Silver certificates were coo: bar silver,
59l4c; Mexican dollars, 4S1zc: bar silver at
London. 274d.
The threatening condition of affairs
which developed in the stock market
Wednesday. eliminated yesterday in one OF
the severest twists ever experienced in
Wall street. The corner in Northern Pa
cific was the impelling cause of the crisis,
owing TO the threat contained in the ruin
Gus terms forced upon the shorts in that
stock that disastrous liquidation would be
forced at other points. Strenuous
efforts were made by the most
powerful financial interests in the
country to avert the threatened trouble,
and almost unlimited supporting orders
were placed in the market for the opening,
in anticipation of the heavy selling which
was TO come. Reassuring expressions were
disseminated from the principal parties IN
interest to the Northern Pacific contro-
versy. designed TO dissuade alarmed hold
ers from precipitate selling of their stocks.
but all these precautions proved unavail-
ing in face of the unmistakable index af-
forded by the price of Northern Pacific
that the corner in that stock was intact,
and. therefore, that the bitter controversy
over the control of the property was still
unsettled.
When Northern Pacific began selling at
200 and 300 and 500 and even as hlgh as 'OV
on regular transactions. and at l,OOO Tor
cash, the appalling possibilities OF the
forced covering OF the largest shortages at
those terms weakened the whole market
and prices crumbled away with the utmost
violence during the second hour. The vol
ume of the blocks unloaded and the reck-
less disregard of the prices which they
brought were without precedent in the
memory of the Oldest trader Before any
check had come to the tremendous liquidao
tion Delaware & Hudson had lost %
points, Manhattan 80, Union Pacific So,
Rock Island 3o4h Atchison S2l2, St. Paul
30i2. Missouri Pacific 3d. and long list OF
other stocks of from TO 80 points. Inc pre-
dominance of the Northern Pacific corner
the situation was demonstrated by the
quick rally in the market when the an
nouncement was made that the contendlng
interests in Northern Pacific would not re-
quire deliveries of stock yesterday Pretty
broad intimations were also thrown our
that such delivery would not be required
so long as present conditions last. Inc eX-
emption of Northern Pacific from the usual
clearing house requirements or delivery
still further allayed apprehension. The quo
tations of the stock fell back TO 300, both
cash and on regular transactions, AFTER
these announcements, and there was
scramble to cover on the part or the pro-
fessional shorts. There were large numbers
of bargain hunters also in the demand.
The effect of this buying was evident in
rallies extended in Delaware x Hudson or
90, Manhattan "a. Rock Island 30, Atchison
50, United States Steel preferred ~, actu-
ally carrying the stock 212 points over
Wednesdays close, Missouri PACING -,
Louisville %, Amalgamated Copper p, st.
Paul 81, and large number of other stocks
held. The market became much quieter
during the latter part of the day. but the
extreme feverishness and nervousness con-
tinued. Even the action of the bankers, by
agreement, in lending $16.0O0000 on the ex-
change at per cent, failed TO relieve the
close from such very erratic movements
and renewed bad breaks in prices. The ex-
tended shrnkaGe in the value of securities
and the corresponding decrease in credits
made money very stringent and 90 per
cent. was bid at one time by those seek
ing accommodation. The action of the as
ISOLATED banks forced the rate down to
per cent. The feverish tone of the market
at the close and the fact that the contro-
versy which has precipitated the trouble
was still unsettled left the feeling of I'M
easiness retaining large force in the finan-
cal district.
Selling of bonds to protect stockholders
made that department of the market weak,
in sympathy with some stocks. United
States tours advanced Il on the last call.
Following are the days share sales and
the closing bid prices: