The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-05-22
STOCK MARKET CONFLICT
SHARP CONTEST ON 'CHANGE be-
TWEEN CoNTENDING ELEMENTS.
Market Closes Active and mt the Ton
Leyel-The Bond Market
Irregular.

NEW YORK, May H.-There was a short,
sharp conflict between the contending ele-
ments in the stock market this morning
with very feverish fluctuations during the
first hour. The pressure to sell fairly over
came the market at one time, aud carried
the level Of prices to a new local record
for the movement below last night, but the
supporting orders, which were in evidence
on very large scale from the start, alb
sorbed all offerings until the pressure TO
sell had spent itself and the decline was
effectually checked. Half the days total
transactions were done in the first hour.
Afterward there was slow but increasing
upward movement and the market closed
firm and quite active at the top level.
There was a continuance of important
liquidation from the first hour as shown
by the large and concentrated selling in
St Paul, the United States Steel stocks and
some of the Canadian stocks, which suf-
fered in yesterdays speculative collapse.
The selling of the United States Steel
stocks was based upon the somewhat
equivocal tone of the weekly Iron Trade
Review. A downward tendency in many
branches of the trade is pointed out. The
argument that an abnormal condition in
iron is being abandoned by yielding prices
for a more normal and therefore more
stable basis is coupled with the admission
that the price at which buyers and sellers
will finally come together is still a puzzle.
The selling of st. Paul was believed to be
for important interests owing to its volume
and it was feared that the demand of
freight handlers in the Northwest carried
threat of serious trouble. The weakness
of Northern Securities on the curb and
selling of the Burlington joint bonds were
attributed to the same cause. But the
same confidence with which the heavy
offerings thrown upon the, market were alb
sorbed served to relieve the fears of
wiping out of margins and shrinkage of
collateraiS, which have aggravated the
weakness Of the market for several days
past: An important factor in the support
OF the market was the heavy buying for
London account, which is estimated all the
way from 1900 TO over 100000 shares for
the day. This made itself effective not
only In the stock market, but in the for
eign exchange market, where the appear
ance. of bills from the arbitrage broker
age houses broke the rate some ten points
and left the feasibility of further gold ex-
ports matter of doubt. The reduction of
the Bank of England discount rate from
4 TO Sls per cent. was the basis of the i'm
proved tone of the English speculation.
The weekly statement of the Bank of Eng
land with Its decrease in other securities
of SSS. 10000 shows the enormous loans Of
last week TO float the Transvaal loan have
practically all been repaid. 1t shows also
the confidence of the banks officials that
the large supply of foreign capital now
loaned in London will not be disturbed by
allowing the interest rate to relax. The
likelihood of further demands upon our
own gold supply is. therefore, diminished.
Finally, the decided reaction in the cotton
market served as a restorative of conf
dence and relieved the pressure of nquida-
| ton of stocks to cover losses by the shorts
| In cotton. The market lost much of its
| animation on the upward course and the
! days net advances failed TO wipe out en-
| tirely yesterdays losses. But the demand
| was well maintained at the higher level.
| "A feature of the day was some further
| wide declines in the marketing of inactive
| stocks.
! The bond market was irregular. Total
| sales, at par value, were 81, $4,000. United
| States bonds were all unchanged on the
| last call.
Following are the days share sales and
the recorded price changes: