The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-07-13
STOCK PRICES TUMBLED
PRESSURE TO LIQUIDATE on Sew
ERAL DIsCOURAGING FACTORS.
Drought in the Corn Belt the Open
Forecast of Bank Statement.

NEW YORK. July 12.-To-day's stock
market was submitted 10 another drastic
process OF liquidation, which caused some
severe losses in the prices Of stocks. In
the late afternoon there was a substantial
rally which wiped out important proper
lions of the extreme decline. The late re-
covery was extremely erratic and was un-
steadily held. The close was irregular. but
with prices near the top on the recovery
There seemed to be no new cause to induce
the continuance of the selling movement
beyond those of a ~echnical nature. The
bears were the active factor in breaking
prices. but the spectators long of stocks
stood passive without any resistance in
the shape of buying to support the mar
ket. The consequence was that on each sue
cessive raid by bears stop loss orders were
uncovered and speculative margins wiped
out. forcing the brokers to sell out their
customers to save losses for themselves.
The banks continued keenly alert to the
course of prices and their continual de-
mands for additional collateral as the fall in
prices encroached on the margin of valua-
ton as collateral. compared with the market
valuation. forced additional liquidation of
the exchange. There were large selling
orders. also. through commission houses
from all quarters by that class of holders
which is discouraged by the mere fact of a
decline, and which sells out on the pros
pect of getting stocks back at a lower
fgure. Reports from the corn belt showed
no Improvement, and it was the opening
quotations for corn which toppled over
prices OF stocks after some progress had
been made toward recovery in the early
dealings. The terms of the announced set
tlement of the Western freight-rate dis
turbance were also considered unsatisfac-
tory, owing to the continued detection of
one of the minor roads in the territory.
The divergence of news from the conferees
on the labor dispute on the steel trade was
the subject of continued apprehension. I'm
der the flood of selling orders thrown upon
the market by the influences OF the various
discouraging factors there were declines
below last nights level for Wabash pre-
ferred OF s Joints. Union Pacific IA. Atchi-
son 5Ss, Atchison preferred SIS, st. Paul
5A, Iowa Central preferred 54, Rock Island
and Delaware & Hudson 5. Chicago & AL
ton and Texas & Pacific "a, and St; Louis
& San Francisco 4. 1t will be seen that the
corn-carrying railways were decidly the
greatest sufferers, but that the weakness
was very general is indicated by such
losses as Delaware & Hudson. 5; Lacka-
wanna. AZ: New York Central. 4: Pennsyl-
vania, g.: Chesa peake & Ohio, 3; B.. & o.. 3%;
Consolidated Gas, 5A: General Electric, 6;
L. :. Steel, 81, and a general decline, en-
bracing the most prominent stocks, run
ming from l 10 4 points. The late rally,
which materially modified these declines.
was primarily due 10 the overSold condition
of the market. the bears having operated
on the short side with great boldness
throughout the week. The prospect of a
favorable bank statement was also a factor.
Apparently the banks have received from
the interior something over $~S,0O0.000 on
balance. while the outgo to the treasury.
including the gold shipment Of S750,000 and
$225. 900 deposited for transmission to the
interior. amounts to 81 ,61S,0 600. There should
be a net gain 70 the banks. therefore,, of at
least 81. 100000 on the week.
RI .I-4A hAn1 p yrnG nnl n
erately active and weak in sympathy with
stocks. Total sales at par value were
So. $50. 900. United States new tours declined
4. and the old tours and the fves advanced
Il per cent. on the last call.
Following are the days share sales and
the closing bid prices: