The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-05-18
PRICES STILL RECEDING
SPECULATION DULL AND MOST OF
THE INFLUENCES BEARIsH.
Coal Strike n Leading Factor in the
Decline-Good Bank Statement
Has hut Little Effect.

NEW YORK. May 17.-Prices made de-
cided recession in the first hour of to-day's
short session because of apprehension Of
the efforts to make the anthracite strike
national coal strike, but practically recov-
cred after the bank statement appeared. A
fall of nearly two points in Colorado Fuel
and heavy selling of United States Steel to
below 40 unsettled the close and made it ir-
regular at declines from the rally The
drop in United States Steel may have been
due to fears of special damage to that in
dustry from a possible interruption of BIZ
luminous coal mining, or it may have been
connected with the meeting of stockholders
on Monday to ratify the conversion OF pre-
fered stock and the issue of bonds. The
bank statement showed a decrease in cash
Of over million, where a gain OF that
much had been expected, but this was ig-
nored in the satisfaction felt over the
heavy reduction in deposit liabilities effect
ed by loan contraction, by which the sur
plus reserves were recuperated to the ex-
tent of nearly five millions. The weeks re-
duction Of 100 in the loan account has
only once been equaled. In the week ended
on May IS 1901, the banks reduced their
loans $24, 204 800. This was the week follow
ing the panic week In the stock market
when loans had been made practically
without limit to check the panic, and when
the buying TO support the market was fol-
lowed by quick liquidation after confidence
was restored. The past weeks events
make it clear that no such liquidation has
occurred this loan contraction would
measure. The local trust companies have
been large lenders all the week Banking
authorities estimate loans placed by the
trust companies at as high as $2O 600
There has been lending also for account of
interior money centers. This is without
taking any account of the large borrowing
abroad, reflected in the foreign exchange
market. 1t is reported that there have
been large sales this week by American
| holders of British consol subscriptions
which have risen in London to a premium
Of 21S-16. The proceeds Of these sales
would represent, of course actual replen-
ishment OF local money resources, but the
| banks ngureS must represent for the most
/ than loan reduction.
! The stock market has settled back into
| a Seasonable condition of dullness during
the week at a generally lower level of
| prices. process of readjustment has
| been in progress both in the stock market
| compnShed rather by shifting of accounts
| than an active liquidation, although there
were some sharp declines forced the
market incident to the discrimination by
| the money lenders against some of the
collateral that has found it's way into loans
| during the late season of liberal credits.
| This weeding-out process was the conse-
quence OF the previous developments in the
| Webb-Mayer stocks and the construction of
the money supply that had been disclosed
by the bank statement of last Saturday.
| Energetic ~
| the money market were taken, which were
facilitated by the high rate for money
ruling mere Supplies OF loanable funds were
| thus attracted 10 New York from all do
| nestle centers, and foreign sources were
drawn upon even more heavily. The rate
for sterling exchange relapsed violently to
the lowest point of the year under the
| heavy offerings of bankers bills in the
1 process of drawing on foreign credits. The
supply of commercial bills in the market
| was very small, and the bills sold were
In effect short sales and represented in a
degree speculation against the future
| supply of exchange, depending on the corn
| crop and the resumption of corn exports.
| In any event, the weeks replenishment
! of loanable resources represents obliga-
lions to be met in the future. 1t was the
| realization of this fact that checked a re-
| the measures of relief of the money market
| became effective and the interest rate de-
| clined. There were also some large loans
| placed here directly by branches Of for
! etgn bankers. Another phase of the pro-
! cess was the transfer of holdings of Ameri-
! can securities for domestic account TO Lon
| don. Americans cabled orders TO London
! to buy stocks there 70 be held with money
| borrowed in London.
The weeks readjustment has restored
/ the balance in both the stock and money
markets, but the demands on the money
/ supply are felt to preclude the chance of
| a favorable speculation for rise. The
anthracite labor trouble is an additional
| incentive TO conservatism The immediate
effect of the declaration Of the strike on
| the coal stocks was not acute, especially
| considering the assurance which has con-
| stantly been expressed in Wall street that
! there would be no strike. The anthracite
operators profess to feel that they have
much to gain from contesting the demands
of the miners in the way of recovery OF
! previous concessions to their demands
| This attitude, however. does not blind the
public perception to the possibilities of ar
| extension of the trouble into the btuminous
coal fields and the collateral effects or
other industries, especially iron and steel
in which continued scarcity Of material
in all stages is reported in spite of the rec
ord output in the trade.
The crop situation has been very atten-
lively studied during the week. The out
come of the years cereal crops is regarded
as of prime Importance in the coming
years prosperity. The monthly govern
ment report on Monday was expected tC
show an important decline in the condi-
ton of wheat, but the amount of acrea sc
abandoned was a disagreeable surprise. i
was argued, however, that the favorable
have improved the condition of winter
wheat while the damage to the abandoned
acreage had come early enough TO permit
of replanting with the all important corr
crop. With that crop barely in the ground
and the spring wheat crop still TO be indi
Gated the final outcome is felt to be toe
obscure yet 10 warrant speculative ven
lures. The progressive dizziness of the
market has been due in a small part tC
this cause.
The distribution on Monday of a $4,000 co.
dividend to the subscribers Of the United
States Steel Corporation underwriters syn
dictate attracted attention TO the enormous
profits of underwriting. The total subscrip-
tons were for 500 0e0, 900. OF this 1212 pei
cent, or SIS. COO was paid In. The paid
in capital has been returned TO the sub
scriberS and the two dividends of per cent
each or 500. O00, 600. have been paid. amount
ing TO so per cent of the cash capital EN-
ployed. II is expected that two additional
8 per cent. dividends will be paid, which
would bring the total profits on the under
writing to $4,000. O00 or 16o per cent. of the
cash capital employed. The result is point
ed TO as indicating the powerful attraction
for the underwriting of Industrial combina
tons aside from the Industrial advantage:
which may accrue
The market for bonds has grown dull and
has moved in sympathy with stocks. United
States threes declined y and all other issue.
Il per cent. below the closing call of las
week.
Following are Saturdays share sales anC
the recorded price changes:
High Low CLOSING