The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-10-07
OF STOCKS
CAUSES A GENERALLY LOWER LEV
Ell IN H PRICE LIST.
A Few Noteworthy Exception. to tn.
huie-Rste for Call Loans Again
Runs Up to ~ Per Cent.

NEW YORK. Oct. 6.-To-day's reaction
airy stock market was typical of a weI-or-
dered liquidation. The bears were alert
and aggressive all day to take away the
market from the long interests. but they
showed their fear Of ov~errunning the mar
ket by the frequency with which they
bought to cover their short contracts. This
operation caused a number Of checks to the
downward course of prices and of rallies
reaching from one to two points in a few
SUCKS. Reading was twice lifted above last
weeks level by these rallies, and rumor
was busy all day in Wall street regarding
the next developments in the. coal strike
SITUATION. The continued manifestation OF
interest In the subject by President Roose-
welt gave rise to the expectation of new
sleps 10 be taken by him. There were
many Inconsistent reports as to the inten-
OF governor Stone, of Pennsylvania,
concerning the use of the military. The an
enrdcite group was inclined to resist the
Iedctionary tendency on this account. st.
daui also made a visible resistance to the
ITschne and shared in the occasional rallies.
Inc determination of the stockholders to
issue new stock to the extent of SIS, OOO, 600
dnn the subscription rights thus implied
ueipeo the stock. 1t will be seen that
heltner or these stocks entirely escaped the
prevailing pressure to sell, which carried
the general list down from one to over
snree points, with a large sprinkling Of
Iour-point losses. The southwestern cotton
5nu corn carriers were notable sufferers,
oouptiess on account of unfavorable crop
tep4rts. There were some heavy declines
III the inactive list, WellS-Fargo and United
states Express dropping Is points, New
YORK Air Brake, Northwestern and Lacka-
wanna Is and Brooklyn Union Gas and
ROCK Island 6 each. Some of the losses
were curtailed by the rally which was in
progress at the close of the market. due to
the covering by shorts.
Uz
enough the policy of the banks in recall
ing loans from the stock market, as was
f~oreshadowed by the action of the clearing
House committee on Saturday in abstaining
from awaiting itself of the proffered release
OF the reserves against government depos-
It's. Inc money rate ran up to IL per cent.
at m1dday and again to that level before
the close. There was strict discrimination
also In accepting collateral for loans. This
policy by the banks is a peremptory an
notncement of necessity for stock specula-
TORS 10 take in sail. 1t is a well-recognized
tenet of financial policy to accord credits
very freely In a period Of distrust or panic
III order to check the disastrous contraction
oi cIeoits. The emergency measure of
ciearlng mouse certificate issues is consid-
ered justified in such a crisis. That the
banks should insist, on the contrary, on
the hquidat1On proceeding at this time is
evidence OF their confidence in the solidity
of-the general situation and the absence
or fears that any substantial and legitimate
business will be harmed by the liquidation
OF loans employed in the speculative holding
OF stocks. 1t is eminently true that the
present s~tringency of money Is not due to
dlstrust or discredit at any point, but to
tne fact that available ready money for
the imperative needs of the circulation is
absolutely lacking and can only be secured
by diverting funds now placed in loans.
sterling continued to advance to-day.
Bonds were weak, but in less degree than
stocks. Total sales at par value were
SS,Sso.OOO United States threes, coupon, ad-
vanced u per cent. on the last call.
The following table shows the range of
stock prices on Monday: