The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-05-03
In A ~DEMORALIZED STATE
STOCKS BREAK BADLY UNDER a
"SHAKING-OUT- PROCESS.
Result Is Net Losses i'm Many
Monetary Outlook Very Poor.

NEW YORK, May 2.-The stock market
received a shaking out this afternoon which
had been considered overdue for some time
by competent observers OF conditions. As
usual. the construction of the money supply
is the immediate cause for the fall In
prices. Needless TO say, the ground has
been prepared by the manipulation Of spec
ulative pools and cliques, with a resulting
imitation in prices which gave purely hc-
titious values in the most fragrant cases
and a highly speculative range of values
in the whole list. The lesson of the Inter
national Power episode was reinforced to-
day by the example of another group
which has been lifted recently by highly
manipulative tactics, with practically no
general demand for the securities. The alb
rupt break to par of Rutland preferred.
compared with 12O yesterday, was a suff-
cient indication on the Stock Exchange OF
the state of distrust which has arisen. The
displacing of credits which resulted from
the discrimination against collateral for
loans caused a lively disturbance in the
money market, which was already in a
tight condition. Some of the largest of the
banks loaned very freely at an arbitrary
rate of 6 per cent, but this did not pre-
vent an active demand at a higher range of
rates all the way up to 10 per cent. TIL
forecast for a weak bank statement did not
give promise of any immediate relief from
the strained condition of the money mar
ket. Indications point TO a loss of cash by
the banks of nearly So, 5000 O in spite of re-
ceipts on balance from the interior, and
owing to the subtreasury requirements. of
S4,134,OO. The steadiness of the foreign ex-
change market at near the gold export
point was also regarded ominously as
threatening a possible further complication
next week. The calling for payment of a
% per cent. installment Of subscriptions TO
the steamship merger syndicate will re-
qulre next week an amount approXimatlng
$7,500,00. on the superstition that so per cent.
OF the SUBSCRIPTIONS are payaDle IN New
York and 40 per cent. abroad. There are
other heavy requirements imminent, includ-
ing the disbursement Of the dividend TO the
United States Steel underwriting syndi-
cate. That there were some heavy transac-
lions carried through yesterday was indf-
Gated by the large clearings of the banks,
which reached about S447, 000. 900 for the day.
The weakness of the market was contested
for a time, apparently by the element
which has led the speculation OF late. 1t
had TO contend with large Western orders
10 sell. The notable strength OF Louisville,
which touched 1893, was attributed to the
maneuvers of this element and was said to
be facilitated by the existence of a short
Az GoAAs III LiS Nv diAlu
was also a help. In the late dealings all
attempt to support the market was aban-
doned and stocks were unloaded indiscrim-
inately, causing a break in prices which
reached as high as 3 per cent. and over in
the majority of active stocks. st. Paul suf-
fered to the extent Of AS. Canadian Pacific
3s and other less conspicuous stocks from
3 TO Z. international Power continued it's
eccentric gyratiOns, which extended from
1O2 to 50, with a net loss of 13 points. Hasty
profit-taking by the room shorts caused
Orn SnQ Cnndfa ra1lfac hut fho oIoGfDC vror
weak and emi-demOralized Minor con-
siderations were obliterated by the impor-
lance attached to the money outlook.
The bond market shared the Of
stocks, but in a much less degree. Total
sales. at par value, were IS, 220,O 900. United
States bonds were unchanged on the last
call.
Following are the days share sales and
the recorded price changes: