The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-07-09
HEAVY SLUMP In SHARES
RATE CUTTING IN THE WEST THE
PRINCIPAL INFLUENCE.
Heavy Liquidation I'm Industrinls the
secondary Cause-Easing of Call
LOan Rates Of No Effect

NEW YORK, July S.-The action OF prices
In to-day's stock market made 1t evident
that very large financial interests were
conducting some notable operations. The
effort was made 10 have II appear that
some occult maneuver was going on de-
signed TO inveigle the public into parung
with their stocks at declining prices Ior
the benefit OF the large financial interests
who seemed 10 be themselves selling STOCKS
with great industry. The final action OF
the market left little room 10 doubt that
urgent liquidation was being effected. Great
caution must be exercised to judge correct
ly how far the liquidation was influenced
by the immediate Developments of the day,
and how far by a general sense OF disquiet
and distrust. which has been gaining force
I'm the market for several weeks past. The
episode of the Seventh National Bank fail
ure and OF the bank failures in Buffalo have
become sufficiently clear to show that they
are not of prime Importance in the imme-
date effects involved or in the collateral
effects, but as a possible symptom of gen.
eral conditions they have received serious
attention. The accumulation of doubtful
securities has always proved a consequence
of a period of industrial expansion, bust
ness prosperity and the general credit
WHlCn Il thereby caused. Inc actual pres
ent conditions in Germany bear striking
testimony to this economic law. In the
stock market there have been large specu-
lative holdings which were withheld from
sale on Thursday. by reason of support
which has been accorded TO prices by large
syndicates and moneyed interests. The in
dications are that a considerable part of
this support was withdrawn to-day, and
Iarge holdings were dislodged by the de-
cline In prices which was allowed to take
place. The selling was concentrated in
character, the bulk of IL coming from a
lew stock exchange houses who have often
acted for Western capitalists, some of whom
nad become prominent in the steel trade
before the formation of the United States
steel Corporation, and have been relegated
10 the background since the rise of that
corporation. The selling attributed to this
source was enormous. not only of the
United States steel stocks themselves but
o. the railroad stocks, which led the slump.
this group was the reported announcement
Dy the Atchison authorities that freight
rates would be cut in the Chicago-Missouri
river territory July 10. AS the railroads
In this territory comprise the principal
properties supposed 10 have been brought
into community of interest, and as there
has been large speculation in them founded
on this superstition, the hostility manifested
by a cutting of rates made them peculiarly
vulnerable. They led the decline all day,
with only occasional struggling rallies on
covering by bear traders. In the final
break St. Paul fell an extreme lOss, Mis-
souri, Pacific S. Union Pacific 7s. Atchison
6ss. and United States Steel. which had Of
fered some resistance during the day, sud-
denly dropped 4 points, under very heavy
offerings. While the general market was
less acutely affected there were some very
sharp losses recorded among New York
public utilities, the most prominent indus
trials and the Eastern trunk lines and
coalers. The declines in these ranged from
3 to Z points in the principal cases. and the
market closed in a semi-demoralized condi-
ton. The call-loan rate was offered down
from s per cent. in the morning TO 2 per
cent. at the close, without relieving the
weakness of the stock market.
Railroad bonds were weak, in sympathy
with stocks. Total sales at par value were
81. 9o0, 900. United States refunding twos ad-
vanced Y per cent. on the last call.
Following are the days share sales and
the closing bid prices: