The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-09-30
Inability to Borrow Funds Resulted
I'm Heavy Liquidations and Net
Losses Of to 10 Per Cent.
LEADING STOCKS AFFECTED
LOCAL BANKS WERE ENTIRELY OUT
OF THE MONEY MARKET.
Not Enough Available Cash for In
Customs-J. Il. Morgan Moved.

up to 80 per cent and a number Of other
adverse circumstances to-day's stock mar
ket received a severe shake-up, net losses
in many active issues ranging from to III
per cent. The greatest loss was sustained
by Louisville & Nashville. Disappointment
regarding the probable disposition of the
road much as anything else is supposed
to have caused the break Other features
that combined to unsettle the market were
disquieting reports concerning the Presi-
dents condition, the prolongation of the
coal strike and the indubitable fact that
London and the continent are unloading
Americans" in large blocks.
Practically all the money loaned on call
to-day came from trust companies and out
of-town corporations and private individ-
uals. The banks of the Clearing House AS
ISOLATION stood aloof and made practically
no loans for speculative purposes. Moreover,
the so-called substantial interests offered no
support to the market, which, with few ex-
ceptions, including Atchison and st. Paul,
closed at the lowest level
The offices of j. p. Morgan & Co. and 9TH
er leading banking houses were active dur
ing the day. Mr.. Morgan and his associ-
ates conferred with some of the more prom
inent financiers. including President Still
man, of the National City Bank, President
Baker. of the First National. and President
Hendricks, of the National Bank of Com
merce. None of these gentlemen would dis
cuss the situation. except to say that fur
ther liquidations of stock would clarity the
financial atmosphere.
The market opened weak and lower all
around, London's attitude having marked
effect in that direction. Cali money opened
at Is per cent, went off a point or two,
but soon rose to 20. In the second hour or
the afternoon session % per cent was the
quoted price. and the top figure of the year.
50 per cent, was reached in the last nalt
hour. 1t was in the late trading that prices
melted most, and the decline was I'M
checked at 1.-THE close.
During the last hour of business belated
borrowers found the supply OF available
funds exhausted and they ran the money
rate up quickly to IS per cent. Meantime
there was a wholesale throwing over OF
stock all around the room and the aspect
of things was rapidly taking on an appear
ance of panic when the presidents gavel
fell and trading was then ended for the
day. Prices were still tumbling rapidly In
all directions and the one or two feverish
rallies where the bears are scrambling to
take quick profits made no impression on
the general Generalization of the market.
2 Some of the principal losses were l.. &
N, lis; St. Paul, 9ss Atchison, SIS; Illinois
Central, SIS; Pennsylvania, 5lz B. & o., SIS;
Canadian Pacific, 6; Northwestern, 6s4;
General Electric and Westinghouse Elec-
trio, each; Manhattan, SIS, and long list
of prominent stocks over four points.
Losses up to four points are common
throughout the list.
The local banks were entirely out of the
money market and the trust companies
were very small lenders in the market.
Funds of out-of-town banks and of indi-
vidual lenders made up the available sup
ply. 1t was very evident that there was
large number of security holders who
hoped that rates would work easier to-day,
encouraged TO this view by the notable re-
cuperation achieved by the banks last week
and the considerable margin of surplus re-
serves revealed by Saturdays bank state
ment. This class held off during the early
part OF the day from supplying their needs,
hoping that they could maintain the seren-
ity of the money market by refraining from
early demands upon it. The call loan rate
was pretty quiet up to noon at about 10 per
cent. II Hurried during the noon hour to 20
per cent, when the demand again became
less urgent The consequence was a wild
scramble during the final hour to secure
loans and a general sacrifice of holdings on
the part of those who could not secure
loans. The events of the latter part of last
week admonished the banking community
that this was speculative element abso-
lutely persisting In a determination in plac-
ing all the loans they could secure in mar
ginal holding OF stocks. Further accom-
modations for this purpose were pre-emp-
torily refused by the banks.
The effects of this determination devel-
oped at the Stock Exchange before the day
closed. The liquidation commenced in Lon
don before the opening here, and this had
the effect of throwing about 10000 shares
for sale upon the local market at the OPEN
Ing on arbitration account. This was sup
posed to be for the account of leading
American operator now in London. All of
the recently active speculative pools and
combinations were active in the liquidation
before the day closed. 1t cannot be said
that there were any new unfavorable de-
velOpments In the money situation. Rather
there was common recognition of the
rmsrre deman th 70 3r De met by the money
source of replenishment to meet these re-
Quirements.
The improved position of the banks had
the effect this morning of stiffening the
foreign exchange market and cutting off
the hope of further relief by gold imports
but yielded no relief to speculative bor-
rowers. The various expedients by the
treasury, the anticipation of October inter-
est and dividends by some'very large corpo-
rate interests and all other means that have
been tried have simply served to demon
strate that the money credits locked up in
speculative commitments in the stock mar
ket have not left enough to meet the in
terror demand OF circulation and the SUBJ
1t is evident that the heaviest interior de-
mand is yet to be met. Apparently all in
terests arrived at a common determination
to-day to take the short way to the only
means of relief available, which was by
selling out stocks and paying off loans.
Only to-morrows Developments can prove
how far the necessary work has been ac-
complished. The disappointment over the
failure OF the st. Paul directors to propose
stock increase, the uneasiness of Louis
Vile minority stockholders as to how they
are TO be treated in the transfer of control
and the further surgical treatment neces-
Stated Of the Presidents wounded leg in
tensified the disposition in the stock mar
ket. But all other considerations were
eclpsed by the difficulty of borrowing mon
ey TO carry stocks.
The bond market was weak. but to a much
less degree than stocks. Total sales, par
value. $3,9l5OO0. United States bonds were
all unchanged on the last call
The following table shows the range of
stock prices on Monday:
lGranger Farwel & Co.'S wirel