The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-06-14
WEEK In WALL STREET
COMPLETE REVERSAL OF SENTI-
MENT ON THURSDAY AND FRIDAY.
Violent Declines on First Three Days,
Reaction FoliOwing-Strong Bank
Statement Helps the General List.

NEW YORK, June 13.-Some hesitation
was manifested in to-day's stock market,
after the violent recovery in prices of
yesterday and the day before, from the
extreme depression of Wednesday. Many
of the principal active stocks have re-
gained from TO Z points during the two
days. The effect has been to lessen the
investment demand from bargain-hunters
and TO develop some selling pressure from
the speculative contingent, which was
fortunate enough to secure stocks at the
low level. This element showed some
anxiety to take profits to-day and took adj
vantage of the strong bank statement to
sell stocks. The lessened demand was
demonstrated by the inability of the mar
ket TO absorb these offerings, so that prices
ran OF sharply and closed generally be-
low last nights level The days losses
were generally fractional. Options for the
advance continued this morning, especially
in Baltimore q Ohio and Erie the former
stock rising at one time nearly points
and the latter nearly a point. The large
earnings reported by Baltimore & Ohio We're
ports We're current that Reading would also
show extraordinary earnings for May The
decision against the right of the Interstate
commerce Commission to exact certain in
formatlon from the coal-carriers was also
made much of by buyers OF Reading. Some
or the inactive stocks which had suffered
from recent heavy declines We're bid UP
rapidly to-day, members OF the Canadian
group being conspicuous. The loan con-
traction of $1.77s1oO by the banks was re-
garded as gratifying evidence that the stock
market liquidation had at least become
effective in the recuperation of bank re-
sources. The cash increase of about one
and three-quarter millions about agreed
with expectations. The rise of "a, 7Ol SIS i'm
the surplus about makes good last weeks
loss. The statement was as good as ex-
pected in every respect, but the demand for
stocks thus induced was not sufficient to
absorb the sales to take profits.
Gloom and dependency overhung the
stock market during the early days of the
week, but on Thursday there was a sudden
revulsion of sentiment. 1t is certain that
no event in the interval justified the ex-
tremes of the views held by professional
operators In stocks on Monday evening and
on Thursday morning. On Wednesday the
prevailing view was that the country was
facing crop shortage, that the iron and
steel trade had passed the elimination Of
and that general Industrial reaction was
in sight. On Thursday morning the more
mercurial OF the operators were willing to
propheSy new period of expansion i'm all
directions. In other words, the prevailing
sentiment took it's tone from the movement
OF prices In a cropping attempt to fathom
the motives of the sellers and subsequently
Of the buyers. 1t was pretty evident that
the bulk of the selling was prompted not
by dependency over the outlook, but by
special necessities of the sellers growing
of tons Of nt1 lone
projects, which had overtaken the resources
of capital and credit. There was good evil
dence that some very heavy holdings of a
speculative character were also being
thrown over, presumably of necessity, ow-
ing to the great shrinkage in the market
value OF securities, with corresponding
contraction in the basis of credits, which
required the placing of additional collateral
for loans and the supply of additional mar
gins for holding stocks credit This is
process which gains cumulative force by
the effect of action and reaction, and the
extent and rate of the decline on Wednes-
day had given rise TO forebodings Of finan-
cial difficulties and fear of failures.
The prolonged period of the decline and
the lack of recuperative power in the mar
ket had made the bears very bold. To sell
stocks and borrow them for delivery and
then offer prices down seemed to have un-
varying success in uncovering Stop-losS or
ders, wiping out margins and bringing a
flood Of offerings which could be bought in
at the lower level and yield a handsome
pTOHt Inc great 0nancIaI interests, which
are usually ready to come into the market
and buy simply for support, seemed indif-
ferent, and 1t was suspected that many of
the wealthy men had their own needs to
look after In protecting holdings of unmar-
ketable securities. The level Of prices was
getting down to an attractive level from a
strictly Investment standpoint and the fact
that the decline was still unchecked gave
rise to fears that insiders had knowledge of
unfavorable conditions not known to the
public. which prompted the selling of
stocks. 1t is characteristic of the genuine
investment buyer, however, that he does
not concern himself with protecting market
prices and Is content to accept offerings
at a level which agrees with judgment and
without bidding for the stocks.
AS a result of widespread inquiry and ex-
change of views and information by bank
ers capitalists and financiers on Wednes-
day the conviction crystallized that the cur
rent rumors of coming failures were I'M
warranted, and that short selling played a
large part in what was attributed to urgent
liquidation on wednesday. Great finaneiers
abroad agreed with advices from New York
in response to inquiries that standard
stocks had fallen to an attractive invest
| ment level, based on present rate of divi-
dends and prospect for continuance. When
the bears were confronted with the knowl-
edge that the stocks they were selling and
making themselves responsible to deliver
were going out of the market and into
strong boxes. and that they were selling
into a pocket" according to the phrase of
| the street, they were overtaken by some
tDlnS ike II panic, ana their rush to buy
stocks caused a rebound in prices equaIing-
| ing the drop of the first part of the week.
The arrest of the decline in itself checked
the forced selling due to the shrinkage, and
| there was apparent relief, Also from the
recent persistent selling supposed to be due
| to necessities elsewhere.
Confidence increased that the general
| situation had been greatly strengthened
| by the liquidation effected 1t is believed
| that very large loans have repaid to the
| New York trust companies as result of
| the liquidation, the loan accounts of
| the banks have not been notably reduced
while the selling on the Stock Exchange
| was in progress Heavy repayments of
obligations to foreigners are known to
! have been made anu the likelihood of en-
barrassment from future requirements in
| that field thereby much lessened. The
government crop report of June l. with its
| promise of an unprecedented wheat yield
| relieved most of the apprehension on that
score. Reports of railroad earnings show
effective increase In the net return and
| have proved reassuring. The doubtful
| outcome of the corn crop and the unsat-
| isfactory reports from the cotton crop
remain to be considered and the labor sit
| uation continues to disturb sentiment
| General conditions. however, have received
| little consideration in face of the tech
| nical rebound OF stocks from the overex-
| tension OF the decline.
| Bonds have moved more narrowly, but in
| sympathy with stocks. United States twos
| and threes advanced Il per cent. and the
| new fours y per cent. as compared with
| the closing call of last week.
| Following Saturdays share sales
and the recorded price changes:
| High-Low- Closinl
! RAILROADS Sales est est Bid
Atchison ...:....-....-.. $500 7oss e9le e9S
| AtchisOn pref.........-.... 335 yol2 80 81