The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-05-14
STOCKS ARE VERY DULL
BUT THEY How VERY GREAT VI
PROVEMzsT IN TONE.
Notable R~ecOveries i'm a Number of
Mondays Weak Issucs-Monetary
Conditions Also Are Better.

NEW r May 13.-To-days STOCK
market was a dull and narrow affair be
tween professional traders for the most
part, but the stronger tone was unmistaka-
bic. To a large extent this was a natural
recovery from yesterdays weakness. The
influences which weakened the market then
were alleviaIed or removed to-day and
there was a considerable demand from the
professional short interest which sold
stocks short yesterday on the unfavorable
developments. The publication of the gov
ernment's unfavorable report of crop con-
ditions on May / induced considerable
realizing by the short interest. The de-
cline in the condition of winter wheat was
hardly so great as expected, but the aban-
doned acreage proved larger than supposed.
The professional shorts were disposed on
the whole TO take. their profits and they
were urged to this course by the additional
argument that the favorable weather since
the first of the month must represent a
notable Improvement in the crop since the
date of the report. Pressure against the
shorts was also caused by the circulation
OF rumors of a favorable turn in the an
thracite strike situation, but no informa-
ton on this point was forthcoming. APP
parently the liquidation forced by the more
urgent discrimination by money-lenders
against collateral was completed yester-
day, and there were no such formidable
breaches in the prices Of high grade stocks
as on yesterday, when that feature was a
strong sentimental influence against the
market. Some Of the wide advances
scored to-day, in fact, simply represented
sudden recoveries or partial recoveries
from yesterdays severe declines. TIL
money situation was somewhat easier to-
day, although loans were made again at as
nigh as 8 per cent. The foreign banking
houses were very large lenders in the mar
ket and the continued decline in exchange
reflected further borrowing from foreign
markets under which the money rate
weakened. The selling of exchange in this
operation is in effect going short in the
exchange market and represents require
ments for exchange to be met in the future.
10 some extent II is a speculation on the
Iuture volume or our exports, which de-
pends most largely on the size of the
coming corn crop. Buying of stocks for
London account was a strengthening factor
in the market. The lower rate for money
stu ruling abroad makes ii profitable for
domestic buyers of American stocks TO
purchase them in London and hold them
with money borrowed there. AS the float
Ing supply in London is small, the technical
effect is to induce purchases in New York
by the arbitrage brokers TO cover their de-
manu IN London, while the shipmen of
stocks from New York are covered by
sales of exchange here, thus relieving the
demand for credits on the local money
maj net. 1tSNSIQdy = sharp TSlapSeS IN some
stocks awakened skepticism as to many
recent rumors Of the source of the recent
demand for stocks, said TO be for control
by large interests. But the Louisville d
Nashville episode, and the known character
OF some of the recent distribution of Read
ing among other interests keeps alive the
conviction that there is a tendency toward
the Judgment of stocks i'm strong hands for
control. The state of suspension of the
Northern Securities case clearly does not
prevent the progress of plans for control.
as the question involved there is one of
method in holding stocks after they have
been secured. A rumor circulated to-day.
although emphatically denied, that the
Northern Securities interests intended TO
abandon their present plan resulted i'm a
drop in the stock on the curb to 80. which
is its first fall below parity. Stocks closed
dull and firm.
The bond market was dull and somewhat
irregular Total sales at par value were
$~2,5i0,Oo. United states twos and threes
declined "a per cent. on the last call.
Following are the days share sales and
the recorded price changes: