The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-11-11
LIQUIDATION IS DRASTIC
STOCK PRICES DECLINE TO A LESS
ARTIFICIAL LEVEL.
Sentiment Much Reassured at the
Close of an Exciting Day-Money
situation still Disquieting.

NEW YORK, Nov. 10.-To-days stock
market absorbed heavy volume of liquida-
ton and worked off large amount of ex-
cited sentiment. AS net result the clos
ing tone of the market was quiet and
steady, with many wide breaches in values
completely restored, and all of them much
reduced. The days business ran over a
million shares, for the first time for sew
eral weeks, and there were times during
the mornings precipitate decline when the
market was very active.
The motives for selling were of a gen.
eral character, such as were at work for
some time toward crystalizing a SEN
timent that prices were too high and cred
its too greatly expanded for financial
health. Saturdays sharp drop in prices
had the result of spreading a wave of
doubt all over the country, so that the
wires brought into commission houses a
large accumulation of selling orders to be
thrown on the market. Many commission
houses also had sent out notices to GUS
toners that they must widen their MAR
gins or. sell their holdings. The bears were
also active in raiding the market to un-
cover stop-loss orders. The dissemination
of a rumor of ]. p. Morgan's illness was
promptly denied, and followed later by Mr..
Morgans appearance at his office. The
troubles of one Of the newer trust COM
panies over its holdings of securities OF
one of the newly-formed combinations were
ventilated on Saturday, and seemed to be
taken quite seriously as an object lesson,
although not regarded important in
themselves. The fact that IL was found
necessary in effect to underwrite an under
writing syndicate was regarded as a rather
typical example. The refusal of foreign
subscribers to pay their subscriptions to
the syndicate was advanced as the cause
of the trouble Nobody has any doubt
that large part of the enormous ex-
pansion of bank credits has gone towards
large transfer of credits into fixed capital
has come the growing appreciation that
there is slow market for these new Sc
curities at home while foreigners show no
disposition to take over the new securities,
even where they have lent money to the
syndicate promoting them. The Issue or
new bonds on the security of stocks, both
railroad and Industrial which have been
purchased for control at very high rates,
runs into the hundreds of millions. The
Saturday episode is evidence that not all
that large loans have been made on many
of these new securities, while their prices
have received artificial support in the mar
ket, sometimes with the proceeds of these
loans, Is making a growing impression on
public sentiment. The process which went
on In to-days stock market goes to cure
tic evils the DOIn III REDUCING
the volume of credits and by bringing the
price-level to a substantial basis.
1t Is felt that the year-end demand for
money the world over must be prepared
for. 1t Is evident that only sustained
money rates in New York will prevent a
heavy outgo Of gold. Sterling exchange
was somewhat lower to-day, but was OFF,
set by a sharp drop in sterling at Paris.
Money here also was firmer, The subtreas-
ury Is again taking large sums from the
banks. The most important development
a fnr ric 10 M
premium Of New York exchange at Chica-
go, indicating turn in the tide Of money
from the interior.
Prices at the low level this morning were
generally from to over points below
last weeks close. The late substantial re-
covery was helped by rumors that set
Element had been secured of the demands
Of the Chicago freight handlers.
Bonds were not so much affected by
weakness as stocks, but their recovery was
| also less marked. Total sales, at par value,
| were A.1S0,0O0 United States twos and old
| fours declined u per cent. on the last call.
Following are the days share sales and
| the recorded price changes: