The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-05-30
WEEK in WALL STREET
PERSISTENT LIQUIDATION STILL THE
PRINCIPAL FEATURE.
Small Upturn at the Close, Chiefly ON
short COvering-General Specu-
lative Situation Is Poor.

49, 80 <Ny
show Of strength in. this mornings stock
market. but weak spots soon developed
and the later trading became apathetic and
at the last stagnant. The opening rise was
helped by London, especially by a consid-
cradle rally in Rio Tintos and a recovery
in the copper market. AS considerable i'm
portance was attached to yesterdays Lon
don selling, which was supposed to be due
to an embarrassment of the short side
of cotton and on the long side of "copper",
this action of the London market was con-
sidered significant A~malgamated Copper
started upward in sympathy. In view or
this tendency of the market and the i'm
minence of a two-days holiday, the bear
element showed a disposition to cover short
contracts. The two-days holiday here will
be the regular Whitsuntide holidays on
foreign exchange, so that the pressure of
any sudden new developments would be
concentrated on the New York stock mar
ket on Monday. But when the brokers
started to cover they found it so easy to
secure stock, owing TO the increase in
orders as the price level rose, that they be-
came reassured. Amalgamated Copper was
clearly under pressure of continued liqui-
dation, which was attributed, as was that
of yesterday, to the unloading of pool ac-
counts in the stock. The price went a sharp
fraction lower than yesterdays low point
but met some support and rallied over a
point. There was renewed selling on a
large scale of Rock Island and later In the
day Union Pacific and Southern Pacific suf-
fered renewed declines, the former touch
ing a new low level for the movement.
There was little new news to account for
the action of the market at any time dur
ing the week. The bank statement was
regarded as negatively favorable,
as there was no impairment of resorces,
but the small contraction in the loan &C
count, in view of the weeks extensive liqui-
dation in stocks, was a disappointment.
1t is evident that the loans paid off with
the proceeds of the liquidation were taken
up by other requirements, of which the
public is not informed.
The fear of a strike Of freigh handlers
on Western railroads continued to over
hang the market and was supposed to
account for the special pressure against
Union Pacific. Northern Securities on the
curb also sold down to within a fraction
of the low level on the movement. The
gains Of the morning were quite generally
wiped out on the reaction. One of these
was in Leather preferred, which moved
up rs on the plan for funding the deferred
dividend on the preferred stock. The mar
ket closed lifeless and not far from the
low level.
The bond market was irregular. Total
sales, at par value. were s1,540.0N.
Persistent and occasional urgent liquida-
ton has again been the feature of the
stock market this week. Both the source
and motive for selling have been enevloped
in mystery, and have been all the more the
cause of active surmise and rumor on that
account. Suggestions that the selling was
due to the special necessities of the holders
rather than to conditions affecting the
properties whose shares were sold. or to
conditions in the general business situation.
were rather welcome, although these sup
positions gave rise TO the usual crop of ru-
mors of this or that capitalist, or group of
capitalists. being in trouble. The profess
sional traders stood always ready to seize
an advantage from the signs Of vulnerable
fly in the market. and their attacks played
an important part in forcing the declines.
But the declines were uniformly effective
in dislodging stock by wiping out margins
and uncOvering stop loss orders, and so
justified themselves from a tactical stand
point. TIL freedom of the bear selling gave
hopes of the accumulation Of an effective
short interest. and kept attention awake
for signs of a technical rally, but each
false start for an upward turn served to
aggravate the encouragement of holders of
stocks, and to deter potential brokers from
entering the market. Sentiment over the
general outlook generally declined in hope
fulness with the extension of the fall in
prices. The conviction was quite general
that much Of the selling came from large
capitalists for the purpose of protecting
their commitments in outside business VEN
lures and their holdings In securities, for
which there Is no present market. Sub
scriptions to the underwriting of the new
Pennsylvania stock issue and the require
ments in the official announcement of the
plan of reorganization of the United States
Shipbuflding Company were cited as exam
Piles Of such needs. The moral effect of the
Pennsylvania underwriting incident has
been pronounced on the whole market stu
alton. The necessity for a resort to a. bank
ers' syndicate to underwrite a stock issue
OF one of the country's foremost railroad
companies, offered to stockholders on terms
that were intended as a valuable privilege,
has made a deep impression of the lack of
absorptive power in the securities market.
There is no doubt that the writing
project had as part OF its purpose to reas-
sure sentiment and encourage the subScrip-
ton to the stock by others than the SYN
dictate. The renewed pressure to sell the
stock after the had been an
nounced, therefore. created a corresponding
ly bad impression. The official report ac-
companying the plan for reorganization of
the shipbuilding company and the drastic
character of that plan. with its substitution
of stock issues for previous bondholdings
and its assertions of previous heavy over
valuations, served to disquiet the feeling
of shareholders over the whole situation of
Industrial combinations and their financing.
The bond market has shown pressure of
selling here and there, but has been more
irregular than stocks. United States threes
declined u, and the new tours. coupon. ad-
vanced "a per cent, as compared with the
closing call of last week.
Following are Fridays share sales and
the recorded price changes: