The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-05-06
NO SIGNS OF A PANIC
BROKERAGE FAILURES OF
SMALL EFFECT IN THE STREET.
Monetary strinGency Depresses Spec
u~Iation, but Price Recessions Are
Few-some Gains Are Made.

NEW YORK, May 5.-The disturbance
and excitement which were felt in the
financial world this morning were much
relieved before the close of the day on the
Stock Exchange. 1t was known before the
stock market opened that the hopes enter
tanned on Saturday of securing means 10
tide over the firms threatened with embar-
rassment had failed. and there was nothing
to do for these houses but 10 announce
their inability 10 meet their contracts. In
two cases the failures were fully expected.
but the third came as something of a sur
prise. There was heavy liquidation on the
Stock Exchange when they were an
nounced. but the effective support offered
the general market checked the ndiscrimi-
nate liquidation and induced more sober
reflections. There is no doubt there was
considerable distrust felt of the fabric of
credits generally, owing TO the ignorance
of the extent to which the collapse of the
Webb-Meyer stocks had involved others.
The development in those stocks in them
selves was recognized to be not of first
Importance. The collapse Of their prices
naturally reduced the basis of credits which
had been acquired on the fictitious and
m~anipulative valuation. but it did not ap-
pear that the local money market had been
used in taking out these credits. Neither
had the dazzling rise in the prices for these
securities attracted any great speculative
attention. The trouble was thus localized
within a comparatively small circle of i'm
mediate participants in the speculation.
This was soon demonstrated by the move
ment of the general market and the alb
sence Of financial trouble in other quarters.
There was the fear this morning that the
results must be faced of similar opera
lions Of other pools in various specialties
and even OF manipulative advances in
standard railroad stocks, but the readiness
with which offerings were absorbed quoted
the nervous excitement and induced some
buying back Of stocks by hasty sellers. In
fact, the days net losses are found 10 be
quite insignificant as a rule, and not a
few important stocks closed higher than
on Saturday. The reports of copiOus rains
in the Southwest and the effective break
ing of the drought conditions which have
Kept awake anXNty regarding the crops
were a material AL TO the recovery. The
persistent upward course of Louisville q
Nashville was a sustaining influence. Ru-
mOrS were Tenewed of a combination OF
Louisville. The movement for the advance
was not followed up, however, with any de-
gree of vigor. The prospect of a strike
on the part OF the anthracite miners and a
~strtngency in the money market will amply
account for a repression of speculation. As
a matter of fact the active liquidation of
NANC "a "a a1NO0AlAtd ~ Xix 16AA4 OAAC
half Of the days total dealings. Money
loaned as high as 20 per cent. and receded
to 6 per cent. only after the principal de-
mand had been met. There can be no doubt
the discrimination emphasized against the
collateral and the unfavorable disposition
developed among money lenders towards
the recent in~discriminate tendency Of the
speculation were factors in the money
stringency. The squeeZing-out process
along this line is viewed with satisfaction.
The knowledge that credits are very liber-
ally expanded at present and that the
rather meager cash reserves are subject TO
heavy demands has caused real anxiety TO
be felt over the reckless speculation in
dulged In in some quarters. The curbing
of this tendency by the money lenders. on
whose resources ii is absolutely dependent,
Is sure TO make for financial health.
Some Of the speculative bonds were weak
under forced liquidation, but the market
recovered and became irregular in sym
pathy with stocks. Total sales at par value
were s4.0O,OO. United States bonds were
all unchanged OH the last call.
Following are the days share sales and
the recorded price changes: