The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-12
LIQUIDATION IS PANICKY
MORE THAN MILLION SHARES OF
STOCKS THROWN OVERHEARD.
Condition of the Money Market Is the
Moving Cause-venezueIan Situa-
ton Has Some Effect.

NEW YORK, Dec. 1.-THE stock mar
ket had demoralized appearance at times
to-day when an eager unloading of securi-
ties was in progress, without regard TO
prices. The volume of dealings rose TO over
a million shares or about double those
of yesterday, which again were more than
double those of the day before. The throw
ing on the market OF this greatly augment
ed volume of liquidation met with very
poor absorption power, and violent de-
clines were the result. There were points
in the market where better resistance was
shown than in others. notably among the
Pennsylvania group. Reading, Amalga-
mated and Sugar. The last-named stock
closed the day with actual net gain of
a small fraction. On the other hand, the
Rock Islands, United States Steels and
Pacifics generally proved easily Vulnerable.
The extreme decline in Rock Island COM
mon was AS, and in the preferred 4s4. The
final prices were respectively, Is and
higher than the lowest. Steel common lost
points and the preferred rs, and their
final prices were only fraction better than
the low points. The Venezuelan situation
exerted only sentimental influence
The real motive for the precipitate selling
was the growing conviction that further
extensive loan contraction will be neces-
sary to meet the requirements for money
between now and the first OF the year.
There was more less forced liquidation
on the refusal of lenders to extend ma
turing loans. but many holders were moved
in apprehension that the same conditions
would shortly become effective in their
own cases, that they threw over large
holdings. There were some of the largest
lenders in the street. also, who withheld
their funds from the time-loan market,
with the avowed intention OF waiting for
higher rates on time loans. This process
served to keep some supply in the call-loan
market AS high as per cent. was paid,
however, for call loans.
Time loans for short periods were prac-
tically unobtainable and rates were very
firm for the longer periods. The rates
quoted were purely nominal, and all sorts
or devices were resorted to TO increase the
actual rate of return over the nominal in
sions and implied agreements on the part
or the borrower to withdraw only GER
tain proportion of the account loan. Time
loans maturing at this time were the i'm
mediate cause of the embarrassment of
holders of stocks. Rumors were current
of the liquidation Of loan of several mil
lion dollars TO single bank, which neces-
STATED heavy realizing on collateral. A
curious feature of the incident was that
TINS collateral included many hundred
shares of the stocks of the bank calling
the loan which were sold in the open mar
ket Money brokers reported that there
was not much calling in of money placed
on call. and they also reported that where
maturing time loans to the local banks had
to be paid off they were unable to secure
accommodations for borrowers from in
terior banks. The rate paid in such cases
was considerably above the nominal rate
Where the local banks are lending at all il
IS simply to supply the urgent needs of
their regular customers for routine bust
ness purposes. Sterling exchange remained
firm to-day and opinions were expressed
that more gold would be sent to South
America. The retention of the per cent
discount rate by the Bank of England is
believed to be an indication of confidence
that the South American demands on Lon
don for gold can be diverted TO New York
Inc subtreasury continues to withdraw
large amounts from the money market and
all rumors of relief measures by the Treas
ury Department met with denials.
To-day's extreme declines reached from
i to points quite generally, and in some
OF the less active specialties range from
to u. The tone at the close was feverish
and unsettled, but quite materially above
the lowest.
Bonds Were weak in sympathy with
stocks. Total sales at par value were
N,S40000 United States threes and old
fours: coupon. declined Il on the last call
Following are the days share sales and
the recorded price changes: