The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-14
WEEK in WALL STREET
A PERIOD OF DRASTIC LIQUIDATION
AND FALLING PRICES.
Monetary Conditions the Moving In
huence I'm the Observation-Disclosures
of Bank Statement.


closed by the weekly statement to-day,
proved a disappointment to spectators.
and stocks were sold freely after its pub
LEGATION. The market closed, in conse-
quence, active and weak Earlier in the
day the movement was nervous and un-
certain a rather active market. There
were several alternate advances and de-
clines before the final active selling move
ment. The volume of the weeks liquida-
ton in stocks under the losses entailed
were felt to promise a more extensive loan
contraction than reported, which was 81,
065, 500. In yesterdays late drive against
the bears the impression got around that
an increase in surplus reserves might be
disclosed. To-day, by reason Of a heavy
loan contraction and some special move
ments of cash from nearby points. the
spectators were the more disappointed
over the actual showing. 1t is possible
that the actual loan contraction is under
stood, as the heaviest liquidation was in
figured for part of the week in the state
ment of averages. But there is also the
possibility that the loans called from the
stock market were put out again to syn
dicates and otherwise. A feature of the
days news was a number of additional
calls for installments of syndicate sub
ment on the New York Central bond UNI
derwriting, which was reported to have
caused some surprise to subscribers. AT
this time there Is no relief in sight from
the subtreasury'S drain on the money mar
ket, and time loans for all periods are at 6
per cent. and for the shorter periods s
per cent.
Severe losses in stocks have resulted from
the weeks trading as result of the crisis
in money The week started off with some
show of resistance to depression, chiefly in
a very dull market, showing the determine
tion of holders not to sacrifice their hold
ings at time when the absorptive power
or the market was very Slight. Upward
movements in some of the specialties from
individual causes, notably in Sugar and
Amalgamated, helped the contest against
reaction, but by Wednesday afternoon the
market had turned weak, and 1t became
evident that the hopes of tiding over the
money requirements of the market until
the turn of the year would have to be
abandoned. The banks and money lenders
seemed to have taken a decision to prepare
at once for the prospective demands on
them, and they began to retrench by the
contraction or loans outstanding In the
stock market. The result was considerable
forced liquidation and a rapidly falling
market. The acute phase of the Venezuelan
situation had considerable effect on the
market, principally of sentimental char
acter. but no other cause was needed for
the break in prices than the entire inabil-
ity of borrowers to obtain funds with
which to carry their holdings. The fact
ket would be subjected to severe pressure
| to meet year-end requirements A con-
tingency thus definitely foreseen is almost
| invariably provided for in financial affairs,
| and the apparent effectiveness of the re-
| sistance which has been established to the
| decline lulled sentiment into a sense of Sc
curity that the worst had been passed The
| incidents which had the principal influence
| in disturbing confidence were the transfer
| OF 100000 to San Francisco on Monday and
| the shipment of 100000 gold to South
America in the middle of the week.
| Large amounts of time loans have ma
| tured during the week and some money
| brokers report that in such cases New York
banks have refused to renew market loans,
! but in some cases new accommodation had
| been secured from interior banking institu-
! tons. 1t is also the case that foreign cred
| the week by the process of placing finance
bills In the exchange market. This Is part
or the operation for evading postponing
gold exports, which was interfered with by
! the movement to South America. The diff.
| culties in the money market were by no
means confined to the stock market. Mer-
J camille borrowers were obliged to pay per
cent. for all time loans and in some cases
| commissions brought the equivalent OF
| short-time loans up to s per cent. Another
| device was an implied agreement that only
certain portion of the loan should be
| withdrawn.
The heavy customs payments have con-
| tinued during the week and have made
| heavy inroads on bank reserves and in
/
thrown on New York banks by orders from
| other correspondents to make payments at
the New York subtreasury. The customs
| collections showed some falling off toward
| the end of the week, and ii is hoped there
| will be relief from this source. Some anx-
| fety has been caused by the weeks events
regarding the position of various promo
| tons In which large sums have been en-
barked, but which have been practically
| tied up and the proceeds made unstable
by the ttghtness of the money market. Part
| of the weeks heavy liquidation Of stocks is
believed to be for the protection of such
| projects and to meet syndicate calls for
| payment of subscriptions which the sub
| scribers had hoped would be unnecessary
in case OF prompt fiotation of the new Sc
| curities involved. All other considerations
than the money situation have been prac.
| tically ignored during the week
| Bonds have been quite freely sold with
stocks. United States tours declined u as
compared with the closing call of last
| week.
Following are Saturdays share sales an6
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