The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-11-09
WEEK IN WALL STREET
HEAVY SELLING OF STOCKS MARKS
THE LAST SESSION.
Doubt and Uncertainty Reflected I'm
All Departments OF the Market
Monetary Conditions.

Ing OF stocks. the source of which was
mysterious, developed on the Stock Ex-
change to-day. Possibly for this reason
the selling gave rise to many rumors of
somewhat alarming character, pointing to
financial troubles. Reports were also cur
rent of large forced liquidation by one
of the leading speculative operators. An
other rumor was to the effect that the
United States Steel Corporation had in con-
temptation sweeping reduction in selling
prices all along the line. Still another was
TO the effect that the secretary of the
treasury was about to make heavy drafts
ON the government deposits with the
tional banks, in order to replenish the gov
ernment's own working balance. The opin-
ion found some hackers that the whole
movement was a well-planned bear raid,
the supposed leader of the raid being the
very leader alleged to be under pressure
by creditors and forced to liquidate long
stocks. The proved untruth of some of
the rumors circulated pointed to the ac-
uvity of bear traders, but il is a Gus
tomary device Of the professional operator
DESTROYS of liquidating stocks to give the
impression of short selling in order to in
vite support of the stocks he is selling.
There was no such evidence of supporting
orders in to-day's market, and the de-
mand from shorts to cover at the last was
not sufficient to overcome the continued
pressure to sell, so that the close was weak
and in some cases at the lowest. Declines
reached TO points in a considerable list
or active stocks. A slump of 10 points in
d., l.. d w. on the sale OF $50 shares at
tracted considerable attention. The bank
statement showed a decrease in cash of
s9,464,OOO, which was two millions more
than expected. The small loan contraction
OF 5000, 100 lost some significance from the
known fact that new loans have been Sc
cured abroad during the week. The sus-
tanned strength of sterling exchange also
kept awe the question of remittances
abroad by gold shipments. This situation
would account for some degree of renewed
pressure upon speculative borrowers.
The movement of prices of securities in
the stock market this week has reflected
doubt and uncertainty over the future. The
movement in this direction has never been
long maintained and the net results have
not been important. The expectation that
the decision of the elections would remove
some or the uncertainties and clear the way
Tor renewal OF speculative activity was
disappointed, and after a temporary squirt
on "Wednesday morning prices ran off again,
ana the see-saw tendency was continued
during the rest of the week. Evidently the
factors OF depression, which have been
In force for some time past, are balanced
against the consideration of the rather ex-
tensiVe declines that have occurred in
prices and the promise of favorable factors
which have recently been ignored in the
trading. The actual condition in the money
market has changed but little during the
week. The fear that gold exports would be
inauSurated Immediately after election
proved unfounded, and conditions have
moved away from the gold-export point
The advance in the rate of sterling ex-
change at Paris has been the principal fac
tor In this change. The development is
explained by reports from Paris and Lon
don that American borrowers have secured
new loans in Paris and are employing the
proceeds TO meet obligations in London on
syndicate account, including operations by
the shipping combine. The London Mon
day market is free this month from the
recent monthly requirement on account of
installments of subscriptions to the consol
issue, payment for which was completed
last month Relief is felt over the intima-
ton that the expected Transvaal loan will
not be offered until some time in the spring.
But 1t is expected that temporary borrow
lngS by the government will make large
demands on the London money market dur
ing the rest OF the year. The usual with
drawals from the great foreign banks for
circulation to meet the needs of trade are
also to be met Ii Is by no means certain,
therefore, that there will be no outward
movement OF gold this fall. The current
surplus OF the home government has shown
a declining tendency and expenditures are
large, so that ii is considered improbable
that any further measures of Monday mar
ket relief will be offered by the Treasury
Department.
1t has come to be more clearly under
stood that the closeness of money this fall
is due primarily to the unprecedented ex-
pansion of credits wrought by the great
prosperity of the country. The inroads on
bank reserves made by Withdrawals for
circulation conferred attention on the enor-
nous volume of bank loans and of borrow
ings abroad. The money difficulties have
attracted careful scrutiny as TO the charac-
| ter OF credits and profit consideration of
the whole question of the business situa-
ton. Great significance is attached to the
cut In prices made by the United States
| Of its departments. 1t is explained on be-
half Of the corporation that the large de-
mand for these products and the high
| prices to which they rose has induced COM
petition in the market on the part of small
| er producers, which it was found necessary
| to meet. 1t is not forgotten that the rates
| for transportation necessary to stimulate
| demand during the last period of depres-
| sion has fallen so low as to demand a revo-
| luton in railroad methods in order to
| cheaper cost of transportation to a profit
able level. The balance of considerations
| thus established inclines the speculator TO
await some new turn of events upon which
| TO operate.
Bonds have shown the same irregular
| tendency as stocks on a small volume OF
business. United States twos and old tours
| declined Il per cent. and the threes adj
vanced Il per cent compared with last
weeks closing call.
| Following are Saturdays share sales and