The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-13
STOCKS ON AN UP GRADE
SUDDEN CHANGE IN SENTIMENT AFT
Err THE MORNINGS DECLINE.
Two Days Losses Generally Turned
Into Net Gains-PrOspects of Re-
lief I'm the Money Market.

NEW YORK, Dec 12-There was sud-
den revuIsion of sentiment during the days
trading at the Stock Exchange which trans
formed a demoralized market into what
looked like an animated bull speculation.
Undoubtedly the bear account, which had
suddenly expanded to unwieldy proper
tions in the last three days, was partly re-
sponsible for the sudden and violent rec0v-
cry of prices, but the change i'm sentiment
on the part Of this element was prompted
by the evidences of large and influential
buying of more substantial character.
This was the signal for the up-turn of the
market Before noon there were ragged
declines OF all the way from one to five
points in the prices of active railroad
stocks. In the inactive list, including
specialties. the losses extended to twelve
and twenty-five points, the last named in
New York & Harlem. The last previous
sale of this stock was made in April of 1902
at 49O. To-day's sale was Of 200 shares at
4O5.
The sale of securities of this grade in
demoralized market is generally regarded
as evidence of the extreme pressure for
money. That there was such pressure to-
day is beyond dispute. and a great part of
the selling was probably without the free
choice of the nominal holders of the Sc
curities. The withdrawal of credits from
holders of stock and the practical impossi-
bility of obtaining fresh accommodations
left no recourse but to throw over their
holdings at the best prices they could get
For a time this process was carried on, as
1t was yesterday, with practically no buy
cline the buying demand developed. 1t is
probable that the level of prices in itself
served as some attraction to buyers who
have resources in reserve to avail them
selves of bargains
The easing of the money situation as a
result OF the days occurrences also gave
some distressed holders the power to Sc
cure means to protect their holdings from
sacrifice. The drastic liquidation effected
was the immediate cause of relief to the
crisis in the money market. An important
factor was the announcement that the $10,-
100000 block of Pennsylvania Car Trust GER
tihcates which was taken by the New York
bankers earlier in the week had been taken
by foreign capitalists. The street was
prompt to jump to the conclusion that a
corresponding amount of capital would be
Immediately released to place in the local
loan market. At all events the incident
helped to relieve acute anxiety over the
money outlook and was promptly followed
by an active rally. Another influential fac
tor was the revelation by the publication
or the preliminary figures of the currency
movement that the banks had gained some
thing over 100000 on the regular interior
movement or currency, thus offsetting to
that extent the loss of So 720, 900 on subtreas-
ury operations and gold exports. Taken in
connection with the probable loan con-
traction less unfavorable bank statement
Is indicated than was feared. The rise in
New York exchange at Chicago to-day from
10 cents premium to Is cents premium and
a sharp fractional fall in sterling exchange
are indications that the stringent condition
OF the local money market is having it's
effect In attracting funds from other
sources. Some mystery attaches to the
source of the very large and sudden de-
mand for money in the last day or two
winch resulted in diSplacing loans from the
stock market. That there was some such
extraordinary demand is evident on the au-
thority of bankers.
The application of the President of Vene-
zuela for arbitration of his difficulties was
a favorable factor on the Stock Exchange
sentiment. The violent up-turn of prices
transformed the earlier losses into general
net gains, which in some cases were suffi-
Gent to wipe out all of yesterdays de-
clines. Evansville & Terre Haute was con
spicuous for gain of points Great
Northern and a great sprinkling of the
leaders of the market of from to s. The
market closed steady but slightly below the
best.
Bonds rallied from early weakness i'm
sympathy with stocks Total sales at par
value were S4.495,000 United States bonds
were all unchanged on the last call
Following are the days share sales and
the recorded price changes.