The Indianapolis journal., 1901-07-01
CHANGERS in DEMAND
STOCK OF CORN CARRYING ROADS
DOOMED AT NEW YORK.
Illinois Central Pushed Up 1-2 Points
Effect of the Past Weeks
Failures.

NEW YORK, June 2y.-ProfeSSlonal Op-
orators played a large part in to-days
stock market. but the professional op-
orators bought stocks quite freely and bid
up prices with confidence The conviction
| that the money market will show progress
| towards greater ease next week, with the
| days disbursement of funds accumulated
| for the purpose of paying half yearly divi-
dends and interest was the handspring OF
this confidence. There was relief also over
the settling up Of the affairs of the Stock
| Exchange house which closed it's doors yes
| terday. Although the embarrassment of this
| house came as a surprise TO the general
| public, its struggle to secure means TO con-
tinue has been known to business connec-
| tions for some time, and has created dread
| of the effect of the failure. 1t Is beheVed
that the greater part of its credits had
been accumulated with the bank whose sus-
pension was caused thereby. with the
| shock of the announcement passed and af-
fairs in course of settlement the atmos-
| phere Is said TO be clearer.
The corn-carrying grangers were in con-
| spicuous demand to-day on account of ia
| vorabe reports regarding the corn crop:
| Illinois Central rose 3ia. st. Paul S% and
| ling of gains reaching a point or more
among the important standard stocks. Inc
loss Of cash shown by the bank xents statemenf nf
| money had indicated The large decrease In
| loans was attributed to Stock Exchange
|
surplus, but it is probable that large re-
payments of syndicate loans figure in the
| loan item. While the money disturbance
of the week precipitated some liquidaton'
| there were also sums loaned on the ex-
| change by large financial interests with
the purpose of checking decentralization:
| The market closed quiet and STEADY at
| about the top level.
THE WEEKS FAILURES.
The influences which are usually looked
| to TO repress. IL not depress speculation
| In stocks during the last week in June
| disturbance of credit caused by the failure
| of the Seventh National Bank and the
Stock Exchange house whose S,Pers,iiiar oPerainiGns
| The financial disturbance in Germany,
| growing out of the failure of the Leipslc
bank has been n mner reet bas been "a some
| forced liquidation by weak speculative
holders. which cut into prices throughout
| the list The liquidation was not remark
| ably heavy. and prices showed resiliency,
coming back rather easily In the intervals
of the selling pressure. This was partly
due TO the fact that the Stock Exchange
house involved was on the short side of
the market, and the closing out or Its
accounts involved the buying In or stocks.
But the usual consequences OF down.
fall of a banking credit, however mucn
the causes were seen to be localized and
due TO irregular methods, were not to be
escaped.
The disclosures in connection with the
failure made no showing calculated to
arouse distrust as to the soundness or the
general business situation, but the char
acter of some OF the securities involved
and shown TO have figured in a banking
business supposed to be conducted on con-
servative lines. had the inevitable erect
of causing a closer scrutiny of credits in
general. Much has been said and written
since the stock market panic In May or
the healthfulness of the episode In hav-
ing checked excessive speculation. which
would lead 10 imitation OF prices and to
the iotation OF all manner OF doubtful Sc
curlties. The very general recuperation
i'm prices OF standard securities since the
May overturn has revived confidence in the
intrinsic value of securities.
Such developments as those of this week,
however, incite to some contemplative rea-
soning as 10 the after effects likely 10 fol-
low from a great speculative boom like
that of this year in its residue OF Sc
curities in which capital was confidently in
vested during the boom period with the
wel-warranted prospect OF a ready sale.
while all was confidence in the indefinite
rise of prices and spectators were eagerly
seeking new securities. The number of
new securities of a minor class which do
not figure st all in the Stock Exchange
dealings. and which are of the class desig-
mated inactive" has been indefinitely null
tiplied in the last few months. Some OF
them are dealt in at long intervals and in
small amounts on the Stock Exchange or
in the curb market at figures which stim-
ulate substantial value for the whole prop
erty of which they represent a share. but
their unavailability for ready conversion
into cash when necessary 10 recOup a bank
for large loans Is the fact brought home to
Wall street There has been. in conse-
quence. much throwing out of doubtful
collateral for loans and calling OF loans for
any cause OF dissatisfaction. which aggra-
waited the scarcity OF money incident 10 the
season.
CALCULATIONS UPSET.
Calculations that large repayments OF
loans by syndicates and corporations would
onset the large borrowing TO provide for
the half-yeary dividend and interest dis
bursements have therefore been somew hat
sufficient 10 discourage any speculative
buying. even IL speculative confidence had
not been affected by the other events OF the
week. Great confidence Is professed that
the market will be benefited by the release
OF large amounts OF money next week by
she dividend and interest disbursements,