The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-06-24
DEPRESSION in STOCKS
DECLINING VOLUME OF BUSINESS
AND LOWER RANGE OF PRICES.
Noteworthy Movements Of the Week
Sound Underlying Conditions.


market was an inconsequential affair. and
even the professional trading, of which 1t
was made up was narrow and restricted.
The trading, such as it was turned on the
bank statement. An inxling was obtained
soon after the opening that the expected
favorable features would not be forthcom-
ing, and the traders sold the market, but
when their views were verified by the bank
statement, the market proved too narrow
to reflect any action by outside holders,
and the covering by professional bears rail-
lied prices. They went off again, 10 the low
est in some cases, while a few upward
movements gave the closing It's irregular
tone. The most disappointing feature or
the bank statement was its failure 10 snow
any of the expected payment OF large cor
porate loans. IL any of these were PAID OH
during the week, there was suf1cient new
borrowing 10 offset this. as the loan item
shows a Slight expansion, not threatening
In it's effect but disappointing in view OF
expecta tions. st. Paul and Union PACING
sold down to the lowest in the final dealings
at rs and rs under last night. New York
Central and the local fractions were half
sustained by buying of the same character
as that recently prevailing Long Island
jumped Ss4 points on the reported project
TO communicate by tunnel with the center
of New York. International Silver pre-
ferred was marked up points on light
dealings
The stock market. this week, has shown
progressive decrease in speculative interest
having fallen below the half-million share
market for the first time since the first
week in November last. Prices have been
Vulnerable 10 selling pressure and have
yielded when speculative liquidation was
attempted and when professional bears at
tempted to attack. What speculative OPP
erations there were were shifted into the
less conspicuous stocks of minor railroad
systems and industrials, and the causes al
legged to explain these movements were
special 10 the stocks affected so that their
advances had S.mD1thet1C erect
the general list. Some of them were pal
pably due TO manipulation and were fol-
lowed by collapses commensurate with the
sensational advances. The wide and fever
ish fluctuations i'm this class of stocks
rather tended to discourage operations and
to arouse uneasinesS, but the deep under
lying factor in checking active operations
was the condition of the local money mar
ket. When the bank. statement of last Sat
urday was followed, on Monday, by the
announcement that 100000 in gold had
been engaged for shipment to Germany, it
became question of simple arithmetic to
prove that any large demands for loans
with which to speculate in stocks would de-
velop stringency and probably precipitate
liquidation in stocks, thus defeating its own
purpose. As IL was. there was hardening
of money, both on time and on call, and
some calling of loans. Rates did not rise
so high as to create any actual distress.
but quite high enough to serve warn
ing against indiscreet expansion of credits.
With the sailing of Thursdays steamer
for Germany IL was felt that the outward
gold movement was terminated as that
was the latest date on which shipments
could arrive in Berlin to be in time for
the July LIST settlements, which was the
| purpose of the movement. But the money
market was still confronted by the semi
annual requirements here, which almost
invariably makes an active money mar
| ket in the last week of June. The dis
| bursements of dividends and interest on
| the approaching LIST of July will be the
| largest in the history of the country,
| a result of the prosperous conditions rul-
ing and the large profits to be distributed
n
| rent estimates make the amount Of money
| to be distributed 12o TO 125 millions of dol
| lars Included in the amount will be the
| semi-annual dividend of 2l2 per cent on
| Missouri Pacific, in accordance with the
decision OF the directors of the company
| on Monday. This is the first dividend paid
| on this stock since 1891, when per cent.
was paid. The stock sold at 12i15 last
week, in anticipation of this action, but
| has since shown the effect of realizing TO
/ some extent. On May 6. 1897 the stock
| solo at 10 on the New York Stock Ex-
! ing power at PRESENT, together with these
figures. constitutes marvellous exhibit of
the recuperauon of the railroad business
OF the country in general, and of the South
western region in particular.
a feature has been the moderating OF
| view regarding future railroad combna-
tions and consultations. 1t is evident that
the spectators have taken advantage OF
! conditions TO violently manipulate the
stocks supposed to be concerned and to
circulate reports greatly exaggerated &C
| the plans intended With the supply of
loanable funds restricted. with which the
manipulators might operate there has been
| a significant falling off In the number and
| character of these rumors. and a more
conservative spirit has prevailed which has
resulted in the discrediting OF some of the
more extravagant runors lately afoat. A
factor making towards this more con-
| sentative view was the adjournment of
| the directors of the Missouri Pacific last
Monday without any action of the greater
| Missouri Pacific merger project, which was
confidently predicted by bull spectators
and long made a potent instrument for adj
| vancing prices. The versions OF the So
| called st. Paul deal have been materially
modified in the gossip of the street from
earlier circumstantial reports of an intend
| ed exchange OF the stock for Jointly guar
anteed 1 per cent. bonds at the rate of
100 par value OF stock for 200 par value
| of bonds.
While the immediate condition of the
speculation Is thus one of repression. the
| undertOne is confident. The promise of n
| heavy wheat crop, the continued large de-
| mand for cotton. the maintenance of ac-
i tivity In the iron and steel industry the
undiminished profits of our foreign trade
the unprecedentedly high level of railroad
earnings. the prospect that large distri-
button or dividends and interest Will be
| seeking reinvestment, and, more remotely
! the receipts OF Klondike gold soon to be
| inaugurated and the possibility of renewed
! production OF gold In South Africa are
| all items in the sum total of confidence In
| the future which underles the speculative
market.
| The market for railway bonds has been
rather quiet except for some of the spec
ulativc issues, which have been I'm demand
| United States refunding twos new fours
| and threes. registered. declined "a below the
closing call of last week.
| Following are Saturdays share sales and
1 the closing bid prices.