The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-11-17
THE INDIANAPOLIS JOURNAL MONDAY. NOVEMBER II. 1902
WEEK in WALL STREET
ONE or NERVOUSNESS AND OF MUCH
FORCED LIQUIDATION.
General Conditions Are i'm Much
Healthier shape than Before the
~Break-The Monetary Situation.

NEW YORK, Nov. 15.-There was still
much nervousness and misgiving reflected
in the stock market to-day, and there were
erratic fluctuations up and down through
out the session. The market closed hrm,
however, and at net advances OF l TO Z
points over last night for the principal
stocks. The bank statement seemed the
deciding factor in driving the bears to
cover. The loss in cash on the week was
rather less than expected, but the loan
contraction was smaller than was hoped
for. in view of the heavy liquidation in the
stock market during the week. The mar
ket reacted sharply Immediately after the
publication of the statement. But 1t was
argued that the heaviest liquidation. which
occurred in yesterdays market, would only
figure for one day in the weeks averages
of the banks. so that the statement proba-
bly, understated the strength of the banks.
The turn of the flow of currency from the
interior to New York aroused hopes of re-
lief Of the money situation from that
source. The extent of the recent decline
and the length of time it has continued
made an upward reaction seem logical to
professional traders, skilled in the reading
OF symptoms of speculative markets. 1T
is not unusual for a downward movement
to culminate with such a slump as that of
yesterday. Bankers were quite unanimous
in denying any occasion for alarming ru-
mors of financial unsoundness in that por-
ton of the financial world, and their as
surances had a relieving effect on senti-
ment. 1t Is pointed out that prices had
fallen all the way from 10 to 80 points on
the principal active stocks, from the high
level of the year. 1t also is a fact that
the low level of Friday, although many
stocks reached the lowest prices of the year,
there were many of the speculative favor
ties and those among the stocks which
have suffered most severely from liquida-
ton that were still from 2 to 10 points
above the low level of the early part of the
year.
The liquidation Of this week was not.
like that of the earlier period of the cur
rent reaction, Immediately reinforced by a
squeeze Of money facilities, although it is
plain that the large banks and important
financial powers have allowed it TO be I'M
derstood that they disapprove of all at
tempts to infiat security prices able to
invite speculation. The wholesale sellers
of stocks seem to have acted on their own
conviction that there was no prospect of
disposing of their large holdings at a profit
where there was the danger that condi-
tons might develop which would necessi-
tate still greater sacrifices in order to dis
pose or them. The conviction gained
ground that prices had been pushed too
high, even TO discount the many favorable
future Developments expected. The high
level of prices was generally perceived TO
be due to large buying by powerful specu-
lative combinations. which did not repre-
sent investment demand for permanent
holding. Besides buying these large hold
ings the speculative combinations had ex-
hausted every device of manipulation TO
lift the price level of their securities in
the market. 1t was realized also that bor-
rowed money represented the resources by
which these enormous blocks of stock were
held on margin. The situation was thus
one OF a threatening weight overhanging
the market and liable to be precipitated on
values at any time. The market values of
securities were thus distrusted as an I'M
stable basis for credits. This distrust has
been particularly manifest on the part of
foreigners. The demand for American Sc
curities in foreign markets has fallen to a
negligible quantity. Foreigners have loaned
money freely to American bankers which
has been employed by syndicates in the
Notation OF many new securities, for they
have looked to old and tried securities as
collateral for their loans and have shown
no disposition TO embark their money in
investments in new American securities.
The necessity for the formation of a SYM
dictate to take over from one of the newer
trust companies its holdings Of securities
of one of the recent industrial combinations
which was revealed last Saturday after the
weeks business on the Stock Exchange
had closed was taken much to heart as a
probable symptom of a general condition.
The new capital issues of the
last year or two, including issues of bonds
secured by collateral of railroad stocks
bought for control at record prices. makes
financial sentiment sensitive regarding
these issues. The feeling crystallized this
week that liquidation, already being de-
layed. was inevitable. and 1t was accom-
plished with some degree of precipitation
and no doubt at considerable sacrifices.
That the fabric of credits, as well as the
values on which they are based, has been
much improved in health as a result of the
weeks events is the general sentiment in
the financial district.
Bonds have been under pressure, but
lave not been so freely sold as stocks.
United States threes and fives declines u,
twos 1 per cent, as compared with last
weeks closing call.
Following are Saturdays share sales and
the recorded price changes: