The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-05-07
GOOD SHOW OF STRENGTH
STOCK MARKET HAS RECOVERED
FROM WEBB-MEYER COLLAPSE.
Gains of One to Three Points Common
Throughout the List-Monetary
Situation Is Improved.

NEW YORK, May 6.-The stock market
made a remarkable showing of recuper-
alive power to-day. Yesterdays nervous
disturbance growing out of the collapse of
the Webb-Meyer group of stocks was en-
tirely lacking from the outset to-day. That
supreme fact seemed to be accepted as
highly beneficial. Immense relief was pro-
fessed over the wedding out which had
been accomplished of an inflated group of
securities, whose precarious condition must
have remained a menace TO the market as
long as it existed. The collapse of an in
hation is always a hazardous operation,
owing to the danger of the sentimental ef-
feet. however strictly localized. The eff
feet is inevitably to shake the fabric Of
credit and endanger sound properties as
we'll as the products Of manipulation. The
hrmness with which the market took yes
terday's shock was a surprise to the most
confident observers. The effect was mani
fest in the opening dealings, when large
buying orders appeared we'll distributed
throughout the list. After yesterdays test
confidence has not been so general in the
~soundness of the market position for many
weeks as it was to-day. The money rate
continued stiff at 10 per cent, at which
rate large sums were loaned by the banks,
and the rate receded only after most of
the demand was satisfied. The maintenance
of the money rate, however, was believed
TO be a symptom of the pressure exercised
by the banks against extending credits for
undesirable speculative purposes. The be-
lief is general that the recent liquidation
has greatly strengthened the position of
the banks and has added much to the
sOundness of the whole fabric Of credits.
T~o-day's clearing house exchanges We're
reported as $500, 43O. 954. Only on four pre-
viOus occasions, all Of them during 1901,
has the New York exchange exceeded half
a billion dollars for a single day. No large
syndicate transactions are known to have
figured in the result. which may be taken,
therefore,, as a measure of the amount OF
liquidation accomplished on Friday and
Saturday In the stock market. The trans
fer of 100000 by telegraph TO New Orleans
was an incident of the day. Aside from the
natural revulsion Of sentiment due to the
appreciation that yesterdays anXieties
surance felt in the financial district that
means had been found TO avoid a strike by
the anthracite coalerS. The coalers were
naturally prominent in the vigorous up
ward movement. The movement in Louis
vile & Nashville, Chicago, Indianapolis Il
Louisville and Illinois Central gave color
to rumOrs OF the extension of Louisville to
Chicago and the establishment OF a COM
munity of interest among the Southern
trunk lines. Ar unusually favorable batch
of fourth-week railroad earnings reported
by Southern and railroads
and further rains in the outhwestern
States, stimulated the rise. The answer
filed by the Northern Securities Company 10
the governments brief was favorably re-
garded in Wall street as an argument
from the financial side of the device OF
Notwithstanding companies. and prompted
some buying of stocks available for merg-
ers. This was notably the case with the
Chicago Great Western stocks. The
strength of the market, however, was quite
universal and gains of as much as l TO 3
points are common throughout the list.
In exceptional cases there were gains in
excess of this. The market closed active
and strong at about the top.
The bond market shared in the tendency
towards recovery of stocks. Total sales, at
par value, were $3.305, 900. United States
bonds were all unchanged on the last call.
Following are the days share sales and
the recorded price changes: