The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-01-04
Declines of Five to n Fraction Less
Than Ten Points General All
Through Industrial List
RAILROADS ALSO ARE HARD HIT
THE BREAKS RANGE FROM ONE TO
-FOUR AND AN EIGHTH.
Bond Market Affected i'm Smaller De-
gree-Local Trade Is Fast Be-
coming More Active.


Prime mercantile paper, 4AQ5ls per cent
sterling exchange was firm with actual bust
ness in bankers bills at $4-s4is for demand and
81 S2d4 S2Is for sixty days; posted rates, sIS2lsG
ass and sIS7: commercial bills, 4S1q4.a.
silver certificates s4Ge65c; bar silver
ssAc; Mexican dollars, 50c. Bar silver. at Lon
don was % 7-16d
The long-expected storm of liquidation broke
over the New York stock market. yesterday. and
swept prices in torrent OF selling on a Gown
ward course, which not effectually checked
even at the close of the market There were
wide breaches in prices by that time. and the
preepitate character of the selling gave the
market the appearance of semi-demoralization
Spectators who long of stocks. showed
many Of the symptoms Of panic In their scram-
BILE to save the imposing profits which the pro-
longed rise had indicated fer them on paper. The
market was soon top-heavy by reason of the vast
number OF accounts narrow margins which
infested il, and the fall in prices gained romen-
tum 1t progressed. The wiping out OF the
margins, with the decrease in the face value
OF stocks forced them 10 sale to prevent losses
by the brokers. Whether any of the liquidation
beyond this was forced would be difficult to say.
The money market maintained calm surface all
day. the call loan rate ruling at az per cent or
below that. There was continued shifting OF
cial transactions involved in the yearly settle
ment, and the disturbance of loans thus caused
added to the unsettled feeling in the stock mar
ket. The aggregate sum called for by the checks
passed through the clearing house banks reached
ssSc 1872 O05 which, with the single exception Of
Wednesday, is the largest total record, ex-
ceeding the previous maximum by over sl5, 900. 000
The real root of the trouble that faith in
the level Of the prices began to be impaired and
conviction was borne in upon spectators that
the large demand for stocks which they have ex-
pected to continue during January has been
pretty largely discounted. realizing of
the fimsy authority of many of the sensational
stories which stocks nave been advanced
founded their own eager demand for stocks with
a supposed alI-embracing public demand See
ing themselves long of stocks at The very high
level attained by prices and with very doubt
full prospect OF a large additional advance. they
eipitancy. or the causes contributor! to the
slump, most Importance must be attached TO the
advance in the Bank OF Englands discount rate
from TO per cent. This supplemented by
the statement OF the three great government
banking Institutions abroad, showing radical
impairment of resources on account of the re-
quiren.ents in the yearly settlements. at the
same time cabled reports from London described
gloomy forebodirgs over the future The result
a sharp jump in sterling exchange rates
in New York and growth of belief that the
New York money market will be called on for
gold to relieve the strained situation in foreign
money markets. The developments in the for
eign trade situation favor this hypothesis. Grain
and cotton bills have become scarce in the
exchange market and the relapse in iron prices
abroad. while prices have been we'll maintained
in the domestic market, indicate the continuity
of falling off in the foreign iron trade I'm
ports of merchandise at the time on
the increase. The heavy liquidation in Sugar had
very unsettling effect sentiment, it was
commonly attributed TO a well-known steel
magnate, who has made his mark here to force
the bear side of the stock market Selling orders
from Chicago over private wires estimated
by Stock Exchange rumoT at high 200 600
shares and were attributed to the account of
stocks on the reduction in the preferred dividend
an additional disturbing influence. The
joint effect of these various causes can be gath
cred by a study of the price changes for the day
Rubber was IA in Rubber preferred, 9ls: in
Sugar. 6ls; Metropolitan Street-raway Ga
Federal Steel 5. and in most of the leading
dustrial stocks between two and five points. in
the railroad list those stocks which have re-
Gently been under most palpable manipula ton
naturally most affected. The most notable
declines from the high point were Erie first pre-
ferred. As: Delaware & Hudson 4: Northern
Pacific, 37s; Baltimore & Ohio ard Delaware
Lackawanna s. Western, 3A Iowa Central pre-
preferred, Denver q Rio Grande preferred, and
Chicago Great Western preferred .'B" az
Kansas G. Texas preferred, go; Cnicn Pacific
3ls. and throughout the railroad list from one to
three points. The closing was in many cases
near the lowest.
The bond market very active and licuida-
ton was in force there well IN stocks hut
the declines in prices We're by no means so
marked. Total sales. at par value were 81 955-
0o0. United States -efunding twos declined Is
and new tours, registered. "A in the last call
Following are the days share sales and the
closing bid prices