The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-15
WEEK in WALL STREET
A PERIOD OF DRASTIC LIQUIDATION
AND FALLING PRICES.
Monetary Conditions the Moving In
fuence in the Observation-Disclosures
of Bank Statement.


closed by the weekly statement to-day.
proved 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 on 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 more extensive loan
contraction than reported, which 81
O60,5OO. In yesterdays late drive against
the bears the impression got around that
an increase in surplus reserves might be
disclosed. To-day, by reason or 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
the latter part of the week, and thus only
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 or the
days news was a number of additional
calls for installments of syndicate sub
scriptions, including the $S,000,O00 INSTALL
ment on the New York Central bond UNI
derwriting, which was reported to nave
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
per cent. and. for the shorter periods
per cent
Severe losses in stocks have resulted from
the weeks trading a result of the crisis
in money. The week started off with some
show of resistance to depression, chiefly in
very dull market. showing the determine
ton or holders not to sacrifice their hold
ings at THE when the absorptive power
of the market was very slight. Upward
movements in some of the specialties from
individual causes, notably in Sugar and
Analgamated helped the contest against
reaction, but by Wednesday afternoon the
market had turned weak, and ii 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 decision to prepare
at once for the prospective demands on
| them, and they began to retrench by the
contraction of loans outstanding in the
stock market. The result considerable
| forced liquidation and a rapidly falling
| market. The acute phase of the Venezuelan
| situation had considerable effect on the
| market, principally of a sentimental char
| acter, but no other cause was needed for
| the break In prices than the entire inabil-
| fty of borrowers to obtain funds with
| which to carry their holdings. The fact
| has long been known that the money mar
| ket would be subjected to severe pressure
| to meet year-end requirements. A con-
tingency thus definitely foreseen is almost
| invariably provided for I'm financial affairs,
| and the apparent effectiveness of the re-
sistance which has been established to the
decline lulled sentiment into sense of Sc
| curity that the worst had been passed. The
| incidents which had the principal influence
| In disturbing confidence were the transfer
OF $4,000 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-
| lions. 1t Is also the case that foreign cred
| its have been largely drawn upon during
| the week by the process of placing finance
bills in the exchange market. This is part
/ 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-
| camille borrowers were obliged to pay 6 per
| cent for all time loans and in some cases
commissions brought the equivalent of
short-time loans up to per cent. Another
device was an implied agreement that only
| certain portion of the loan should be
| withdrawn.
| tinued during the week and have made
| heavy inroads on bank reserves, and in
ternal revenue requirements have also been
| 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
| will be relief from this source. Some anx-
iety has been caused by the weeks events
regarding the position of various promo
tions in which large sums have been en-
barked, but which have been practically
| tied up ana the proceeds made unstable
by the tightness 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 a 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 and