The Indianapolis journal., 1901-09-29
WALLSTREET'S 'SBAD WEEK
FEAR THAT THE CREST OF PROS
PERITY HAD BEEN REACHED.
Bad RumOrs and the TumbIe of Cop-
per DemOraIized the Market-Yes-
terday Was Encouraging.

NEW YORK. Sept. 2s-with only two
hours Of trading to-day and a yacht race
in progress large part Of the usual inter
est in the stock market was diverted and
the affair was principally one Of small pro-
fessional operations. There were some heavy
blocks, running from 1000 TO $500 shares Of
United States Steel common and preferred,
New York Central and Union Pacific trans
ierred in the opening dealings. and the
market generally went higher during the
hrst hour. number Of obscure stocks
was brought forward, some new ones be-
ing added to yesterdays list. Amalgamated
copper huctuated. rising a small fraction
at first and meeting support at early de-
cInes. The whole market sold off in the
second hour, when traders took their
profits, and Amalgamated fell "a below last
night. The Vanderbilts were also notably
affected by the realizing in the absence of
the buying from the sources which were
responsible for yesterdays strength. The
market closed weak. The bank statement
showed larger gain in cash reserves than
was anticipated, but failed 10 reflect the
expected contraction in the loan account
from the stock market liquidation. Prepara-
uons for October disbursements and for
subscription to several municipal bond
issues during the week probably account
for the offset to the repayment of loans by
stock markets.
Heavy liquidation from all sources has
been apparent in the stock market al the
week. The motive of this liquidation was
OBVIOUSLY mixed and seemingly somewhat
conflicting. What are called the large finan-
clal interests showed evidence of a divided
sentiment early in the week. Morgan and
Gould stocks continued to advance with
inside support when evidence
Oh support had been withdrawn in stocks in
which Standard Oil interests are dominant.
Ihere has been activity for some time past
by the speculative pools in the market,
based upon the assumption that the great
financial powers were united in determ-
mauon to support prices and protect the
money market as they did through the
crisis following President McKinley's as
saSsination. The fact of a divergence of
policy among these influential capitalists
was sufficient to check the activity of the
professional pools, even while the party
continued its measure of support, which
was only for short time. Not only did
the supporting powers In the market dis
continue their measures, but they became
large sellers of the shares accumulated by
their heavy buying at recent periods of
weakness. Joined with the rush to realize
py professional pools, the effect was TO
throw the market at times into state bor-
oerlng on Generalization.
CAUSE OF COPPER TROUBLE.
sentiment Of the Developments in Amalga-
mated Copper doubtless was an important
element in deciding the change of policy
on the part of the leaders. The condi-
tions in the copper trade which are as
signed as the cause of the present demor-
alization In copper stocks are not new sub
jects in Wall street. Even the omission
OF the customary extra dividend on ANAL
gamated Copper stock industriously
rumored for many days before the fact. J.
was news to the spectators in the stock
that foreign consumption and exports of
copper had decreased enormously, owing
to trade depression and failures of cleo
trical enterprises in Germany. Copper
trade statistics were in circulation for
weeks before the collapse in Amalgamated
Copper, and even while its price was soar
ing to near its record figure. 1t was only
on the very eve of the dividend action by
the bears that the manipulation for the
advance and support ceased. The rush to
sell after the reduction in the dividend
found the market practically bare of de-
mand, and the drop in the price from 107la
on Friday afternoon last week, before the
dividend was announced, to SS$s on Wednes-
day was practically perpendicular. The
selling of stocks elsewhere in the market
was due in large part to speculative losses
incurred by the drop in Amalgamated Cop
per. The whole speculative tone became
pessimiStic, and there was large selling
of long stock and short selling by the
bears. The general outlook was considered
discouraging, and views were expressed
that the cycle Of prosperity had reached
the crest. Rumors were rife of the aban-
donment of some of the important tnan-
cial projects looking to extension of COM
munity of interest, and announcement ac-
cepted as authorized was made that meas
ures for financing the purchases of North
ern Pacific shares on behalf of Union Pa
ciflc were to be postponed until more favor
able conditions. This renewed the latent
apprehension of an outbreak of the quarrel
over the control of Northern Pacific. East
bound freight rates into Chicago were re-
ported demoraliZed on account or the llgnt
grain movement, with threatened eXten-
sion to trunk-line territory, and specinc
assertions were published OF feud be-
tween Pennsylvania and Wabash over the
entrance of the latter into PfttSburg, with
threats of repriSals, fears recurred that
the interior demand for money would ex-
ceed the resources of New York banks ana
would necessitate large curtailments of call
loans to meet them, while the sharp re-
cOvery in foreign exchange carried rates
we'll away from the gold import point and
destroyed hopes of immediate relief from
that source. Such were some or the items
making up the feeling of discouragement
in the stock market during the period or
violent decline in prices.
MONEY MARKETS FUTURE.
The future Of the money market, indeed,
seems by no means clear. although interest
rates have declined and banks have shown
increasing disposition to accommodate bOr-
rowers. That heavy requirements remain
to be filled for interior currency needs is
certain. Cotton is being held at the South
for higher prices and contract credits are
required for this purpose. In addition the
supply of cotton bills is diminished in the
exchange market and claims upon Europe
for gold are thereby reduced. The period
OF active money at home as well as abroad
is approaching, and the pressure OF Berlin
this week and Withdrawals of gold from
London for that center indicates the ex-
traordinary requirements incident 10 the
end of the quarter. The condition of the
copper export trade is suggestive of the
possible effect upon other trades of stag
nant trade condition in Europe and de-
creased demand for our commodities and,
I'm some cases. increases competition from
cOngested stocks and lower prices abroad.
1t is evident, also. that the weeks demand
for foreign exchange was due in part TO
a demand from shorts, which is in effect
a repayment of loans from foreign borrow
ers made some time ago. Remittances on
account of subscriptions to the British
consol issues also played a part. But on
the other hand the week has seen the
receipt of S25OO,0O0 in Australian gold at
San Francisco and the shipment of
sydney. Large rpdQmD-