The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-17
SHARP DROP IN PRICES
LAST HALF HOUR OF THE STOCK
MARKET DEVELOPS WEAKNESS.
General Tendency Had Been Upward
Before the Break-Interest in
Monetary Conditions.

NEW YORK, Dec 16.-There was an eX
traordinary melting away of prices in the
last half hour of to-days market, follow
ing marking up of quotations during all
the previous portion of the session. Just
before 2:30 o'clock prices were at the high
est of the day, and net gains Of points
or over had been attained by leading stocks
here and there in all the principal groups,
such as Pennsylvania. Southern Pacific,
Missouri Pacific. ST. Paul. Rock Island pre-
ferred, Delaware & Hudson and Sugar. In
the last half hour St Paul dropped back
abruptly 3s4 and some of the other stocks
were carried swiftly downward. The inter-
probation of the movement was believed to
be that the powerful interests in the finan-
cial world which announced their organ
ization yesterday for the protection of the
money market desired to convey a warning
that they had no intention of allowing those
plans to be interfered with by injudicious
speculation at this time. There was more
or less realizing before the close by the
professional traders, who bought in yes
terday's market and early this morning.
Previous to the final slump the course of
prices was quite prosperously upward.
There were reports of assurances received
by the State Department regarding the
intentions of Great Britain and Germany
in Venezuela. which served to cause
better sentiment on that subject, but the
principal influence In the rise was the re-
assuring effect of the formation of the
bankers pool providing 100000 for use
In a possible money market emergency.
The effect was to relieve the stock market
from the pressure of liquidation. Offer
ingS became so light, in fact, that ii was
easy TO bid up prices on very light pur-
chases. This was the notable case among
some or the inactive stocks among which
floating supply is always light, especially
in the Vanderbilt group.
There was some surprise expressed, how
ever, over the extent of the protective
measures taken by the banks. There was
much surmise as to a possible real need for
these measures, which has not been dis
closed. and disposition to consider that
the existence of such a need was indi-
Gated by the formation of pool. While it
was recognized that no part Of this fund
would be likely TO find its way directly into
the stock market, II was considered prob
able that further Withdrawals of loans
from the stock market would be avoided,
owing to the unfavorable effect on senti-
ment which the heavy stock liquidation
has caused. The principal good which it
is hoped to achieve by the announcement
or the large resources available is upon
sentiment. Part of the present stringency
is undoubtedly due to the Withholding of
funds by persons who have become timid
or who have determined to wait for high
money rates before lending their resources
Call-loan rates did not get above 6ia per
cent. to-day and ran OF to below per
cent. when the principal demands had been
met. The time money market was also
called easier in tone, although not quotably
changed. Much satisfaction was felt be-
cause. notwithstanding the easier tone of
money, sterllng exchange rates yielded an
| additional fraction. The stock market
| closed distinctly weak
Bonds became firm in sympathy with
stocks, but yielded at the last. Total sales
at par value were $2,5O5,OOO. United States
new fours declined u per cent. on the last
| call.
Following are the days share sales and
| the recorded price changes: