The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-03-24
STOCK MARKET Is FIRM
LEADING ISSUES, HOWEVER, ARE
NOT MUCH DEALT IN.
Speculation Is Largely I'm specialties
and LOw-Grade RaiIroads-Bad
Monetary Outlook.

Paul was the favorite, and there was some
demand for Union Pacific. Rock Island
was cratic and kept dropping back after
its advances TO last nights level, where it
ended the day. The action Of the wheat
market gave a hopeful feeling regarding
winter wheat. but it is not clear why st.
Paul should be picked for the leader on
that score. The hope of favorable bank
statement was a factor in the buying, but
the traders took their profits in St Paul
before the appearance of that document,
perhaps on information a few minutes in
advance that it would dsappoint expecta-
tons to a degree. The early market for
railroad stocks was firm in sympathy with
ST. Paul. and weakened with it, but the
total range was very moderate The active
specalties were irregular, but mainly re-
dictionary. Those that were strong lost a
good part of their gains. The various rub
Der stocks and Hooking Coal were the con-
spicuous instances. The reduction of ST.,
1876 400 in the deposits of the banks relieved
the reserve requirements so as TO guard the
surplus. which showed a small increase.
But the proportion of cash in the deposit
decrease was larger than expected by about
100000 What the source of this extra
drain on the banks was does not appear.
There was, however, no large resumption
of buying of stocks after the bank state
ment appeared, and the market closed II
regular.
There have been some extraordinary price
movements this week among stocks Whlch
are rarely traded in to a large extent on
the exchange. The movement has been es
pecially conspicuous among stocks that are
closely held at high prices by the close
holders, who keep aloof from the stock mar
ket and pay little attention TO the price
movements there, but hold their shares
through advances and declines Such move
ments are viewed with suspicion by expert
enced traders, because they are COMPARE
lively easy to cause by manipulation owing
TO the small floating supply of the SHARES In
the market This feeling is emphasized
when lOW-grade nond1Vldend paying STOCKS
with no known prospect of early dividends
share in the movement, while the large
mass of important representative stocks
are left neglected and sluggish. That has
been the state of affairs in the stock mar
ket during the past week. The neglect
of the standard stocks is, in fact, &C
Centuated by the erratic movements OF the
less prominent stocks. 1T is very notable,
however, that while there is almost no de-
mand for stocks there is a marked dlslnch-
nation To sell. so that prices are remarkably
firm. The weeks price changes are mostly
gains, although small ones. This hrmness
of undertone in the market Is attributed
variously to the confidence in the future
prosperity of business conditions and to
the fact that the bulk of securities are held
by powerful capitalists and syndicateS as
the proceeds of organizations and reorgani-
cations, who have adequate means 10 mold
them and bide their time for favorable OPP
portunity to market them. The actual
promise for the outcome of the year Is
i'm the normal period of doubt and develop
ment. This is undoubtedly the real reason
for the dullness and neglect of the stock
market. which is only varied in years or eX-
traOrdinary conditions, such as those or
last year.
The critical period of the growth of the
country's great staple crops is always Pc
riod of hesitation and cautions speculation.
The outcome of the winter wheat crop is
looked TO with special interest this year.
owing to the shortening of last year crops
in the winter wheat belt. The rains of this
week i'm the Southwest have been taken as
a promise of favorable outcome and have
helped to keep the market for stocks firm.
The current returns or railroad earnings
from that region are showing the effects OF
last year s short corn crop in the falling off
In traffic. The obstruction 10 railroad traf-
fic in the Northwest by snowstorms has
been partly offset by the belief that the
coming crop there is favored by the snow.
The usual spring settlements of the labor
questions are repressiVe influence on spec
ulation. They are brought into prominence
by the convention of mine workers at Sha-
mokin and the differences with operators
disclosed. The agreement with textile work
ers in the New England mills was a helpful
factor
The iron and steel outlook is regarded as
highly encouraging, although authorities in
the trade have been inclined to deprecate
urgent buying for future delivery. and diff
ficulties of securing raw material and
transportation of finished products are COM
planned of. The United States Steel stocks
have been inclined To sag, but this was in
part due to doubt about the proposed issue
of $3.50 900 800 debenture bonds for the retire
rnent of 800 900 900 of preferred stock and
TO provide $50 900 900 additional capital Spec
ulative opinion is confused as to whether
this heaviness is due to disappointment AT
placing a security ahead OF the preferred
stock, with prior claims to earnings, or
whether il Is intended to facilitate an
emulation of the preferred stock to insure
the success of the plan.
But even in the absence OF these various
factors of doubt and hesitation the condi
ton of the money market alone would ac-
count for the dizziness of speculation. The
enormous credit commitments of the coun-
try are due in part to the large tie-up Of
capital in syndicate projects and i'm part
to the great activity of interests. The low
surplus reserves which result make the
money market sensitive to demands on re-
serves for the needs of the circulation.
The country's large Indebtedness to for
eign lenders makes our money market Vui-
nerable as well TO the exigencies Of foreign
money markets Large government loan
operations in prospect there are beginning
TO have an effect. The Russian loan an
nounsed this week. of over $90,0OO.0O0. sub
scribed for in Russia, Germany and Hol-
land was something of surprise to the
financial world and leaves behind it a large
Russian loan to be placed in Paris. The
weeks fall in British COnsOls in anticipa-
ton of the coming British loan. to provide
for the coming year war needs In South
Africa is not regarded so certainly as the
last requirement for that purpose as was
the case some weeks ago. Foreign money
markets are hardening under this influence,
and a high money rate here is all that
wards off further demands for gold.
Finally the suspension of the secretary of
the treasury's offer TO redeem government
bonds removes a safety valve from the
money market which has been relied on for
relief in any possible time of pressure and
which has been sentimental influence in
Keeping up confidence even when IL was
not awaited OF. The conviction is general
that if money stringency is to be avoided ii
must be by avoiding extensions of credits
in stock market speculation.
Some of the semi-speculative bond issues
have been In active demand during the
week but the general market has been
rather dull and irregular. United States
bonds were all unchanged as compared
with the closing call of last week
Following are Saturdays share sales and
the recorded price changes:
High Low Closing
Stocks. sales est est Bid.
AtchisOn ...-.-....s...s- o-vVI "a ttts IA
Atchtson pref az0V stts 3les S74
baltimore & Ohio-....- $500 10I 1o6ss 1867
r. 4 O. pref. ..-........ 20 - - g
Canadian Pacific 500 1l5n ll5A 49,
Canada Southern .... S7L
Chesapeake * Ohio..... 400 ass asa 4siL
Chi. & Alton..-......... l. 100 Sb~s 80 36L4
c. & A. pref............ 200 t6k 70 754
chi Ind & Louis. $500 6eA 6S4 e5s
., l. 4 l.. pref. lel % Is 70
chi. & East. Illinois. 20 16l 159 159
este