The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-07-29
CONDITIONS ARE MIXED
MANY AND VARIANT. AGENCIES IN
FLUENCE THE sTOCK MARKET.
Bear Campaign Seems to Have Over
reached Itseif-Resources and De-
mands i'm a Financial Way.

ment is required upon to-day's stock mar
ket. TIL same conditions OF apathy and
inertness that have been gaining for the
week prevailed. Trading was of unim-
portant dimensions and the price move
menus were without significance. The pub
lie was entirely unrepresented in the mar
ket. and the meager trading represented
only the efforts of professional operators
Of the smaller class to induce some move
ment Of prices that would offer them a
days profits. whether on the up or the
down grade. The dealings in the United
States Steel stocks, and, to a less extent, IN
the grangers and Pacifics. overshadowed
the rest of the market. The Steel stocks
were strong on the same kind of operations
as those OF yesterday, seemingly based on
a belief In an early triumph or the cor
portation in the strike contest. The COM
mon rose , and the preferred 2is. The corn
carrying railroads were benefited by the
weakness of the corn market and the re-
ports of the breaking of the western
drought. The american Locomotive STOCKS
and international Power were sharply de-
pressed. The Canadian Pacihc's subsidiary
roads responded to the recent Strength IN
that stock. The Tobacco stocks, People
Gas. Amalgamated Copper, American COT
ton Oil. the yirginia-Carolina Chemlcal
stocks ard a few others were notably
strong. Traders sold on the increase In
loans reported by the bank statement, but
they induced no following and covered their
SIOIl COlllIdCtS OCAOIC lIt 0AO1Cs liz 49,
steady at the recovery.
The week just passed has given fa pretty t6y
time at least. Of the speculation Tor the
decline in stocks and for the rise In grams
which has been going on In the various
markets during the whole of July. Inc
effect on the stock market has oeen feVer-
ish and irregular movements or prices, With
narrowing fluctuations and decreasing vol
ume OF business. According 10 the lnVari-
able rule in speculative movements OF any
dimensions, this one has overdone itself.
The consequence has been reaction from
the recently prevailing tendency. STOCKS
have recovered and grains have relapsed.
Monday mornings prices were the loWesl
of the week, but did not reach the leVei OF
weather ana drought over Sunday brought
an accumulation of selling orders INTO the
market which sent prices down win a rush,
and there did not seem TO be the vigorous
support which was offered the previous
week when the steel strike had demorallzed
the Steel stocks. Everything looked prom
ising for the bears. But 1t began to be OBJ
vious before long that the INDUSTRY OF thdl
faction had involved them so far That they
hesitated to commit themselves further anu
that they were disposed 70 close up their
contracts. The same conditions were mani
tested in the grain markets, wnere me I'M
loading of the longs produced d coliapSe
IN corn out of all proportion 10 the meaSer
relief reported for the crops IN the drought
stricken district.
dency of the markets the week has been
given to a sort of taking STOCK OF preselt
! DrlcCS as IleN apply W dNludl utN P'SA'
Use. More conservative views have pre-
vailed as to the relatively lower prices
warranted by the damage to the corn ana
wheat crops. 1t is pointed out tnat tne
heavy decline in the spring wheat yield
! last year was found not to warrant the
severe declines in the prices of Northwest-
ern Railroad stocks. Earnings of those
railroads were found to be well sustained
by the very large general merchandise
traffic. and distribution to stockholders was
not diminished. Experts estimates OF tne
yield of corn, on the basis of the damage
done, reveal that a large traffc yet re-
mains for the railroads from the crop. me
important compensation OF a successful
wheat crop is urged. The relatively small
er proportion borne by the gram irdIlc
on the Western railroads to the total ton
mage is taken into consideration; Inc large
SURPRISES carried by the railroad companies
as a residue from the several prosperous
wears are cited 10 show their ability. to
face a year OF ~scantier earnir gs. But wnen
all is said the fact is still recognized tnal
the unprecedentedly prosperous .concltlons
of the last few years are already altered,
with the final outcome of the steel strike
still 10 be reckoned with. Even with the
severe losses already recorded from the
high level of the year, in the prices OF
railroad stocks. the fact Is kept In MIND
in actual conditions. ana represented a
large degree of speculative imitation;
The excited neriod of bull speculation, as
to Just how stocks are to benent In value,
even supposing ali that has been related
of community of interests and passing OF
control to centralized railroad systems be
true. The process in almost every instance
was approximately the same. and involved
the purchase Of control at high prices ana
the issuance of bonds ahead OF the stock
of the purchasing railroad. These bond
issues are OF a volume that require the
high earnings of the most prosperous years
nv the purchased roads TO pay the charges
upon them and TO keep the system out or
bankruptcy. In one case, for instance. the
public and the investor are left in the dark
as to details OF what collateral secures
an issue of 800, 200 of bonds, involving
yearly charge. of S4,OO0. 600 ahead of Che
stock of the railroad. Another consldera-
ton is the enormous amount OF capltal sDd
credits tied up in the purchase by Syndl-
Gates of various control. The release or
these credits naturally depends upon the
marketing of the securities. whether bonds
or stocks, issued to the public TO recoup
the syndicates for their outlay In the pur-
chasing process. 1t goes without saying
that the recent conditions III me securities
market nave not been prOpitious to this
marketing. and nc small part OF the re-
cent heavy liquidation Is probably due TO
the measures for the protection OF capital
lists.
of the transfer of currency to the interior
10 move the crops calls attention to the
fact that recent liquidation in the stock
market had a. its object preparation 10
meet this requirement and not TO suppl
means for a renewed speculation in stocks.
The question also arises whether this year
will see the normal response to this in
terror movement of currency in an inflow
of gold from abroad.
BUSINESS in railroad bonds has been on
a small scale, except in a few issues that
are related in value TO stocks by convertl-
bic rights. United States refunding twos
have advanced "a per cent. on call Tor the
week.