The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-07-12
WEEK in WALL STREET
SELLING PRESSURE PERSISTED TO
END OF SATURDAYS SESSION.
New York Central, Pennsylvania and
ST. Paul the Centers of Weakness
-Enec of Bank statement.

NEW YORK, July 1.-THE stock market
was again subjected to severe selling pres
sure to-day under the impulse of the same
motives as have prompted the selling for the
two days previous. The pressure On New
York Central was the most conspicuous
feature of the market and carried the price
down to 11f4, an extreme decline from yes
terday of Az and from last week Of n&.
Tn attack on the market was obviously
in professional hands, but it was equally
evident that the bear tactics were based
on knowledge or conviction of the existence
of large orders TO liquidate in the market.
Beyond the mistaken conviction OF the
necessity of an early increase in New York
Central capital issues. there was no inn
mediate news TO account for the general de-
cline, and it seemed to be based as much as
anything ON a general belief that a re-
adjustment Of the price level of securities
must be made to conform to new conditions
in the money market and industrial affairs
before any real demand for securities can
be attracted. The renewed weakness of
Pennsylvania and its break through the
previously protected minimum at 123 to 1215s
had almost as much effect on speculative
sentiment as the slump in New York Cen
trail. st. Pauls drop to 1441k was of al
l HluSt tuudl llllutlce. l0cSt SHOCKS, as We'll
as Southern Pacific and Amalgamated.
broke through their previous low levels for
the year and thus began the uncovering
of fresh stop-loss orders, which had been
pretty well cleaned up above the years
previous low levels. The temporary rally
on the bank statement was of little signifi-
canoe, as the loss of cash, which was ex-
i,pected to be nominal ran to 3,3O6, 500, with
to-day's exports of gold still 10 figure in the
averages. The satisfaction over the loan
contraction was an offset. The reactionary
tendency of the grain markets to-day was
evidence against the supposition that the
crop report was Disappointing. The mar
ket closed active and near the lowest, the
few late rallies not being well held.
The dullness and hardness which char
acteriZed the stock market of the early
part of the week gave way to sharp de-
inference that hopes were entertained that
the ease of the money market, which is
usual at the turn of the fiscal year, would
bring some demand for securities into the
market. This hope was disappointed, and
it became obvious that efforts to liquidate
were awaiting any increase in the absorptive
developments occurred in the general stu
alton were ignored and the selling of stocks
of all classes was freely pursued. The most
notable of these favorable developments
was the showing of railroad earnings made
in the reports for the fourth week of June
Of gross earnings and the net returns for
May. The increase In gross earnings for
the fourth week in June for the roads re-
porting was 2o.54 per cent, compared with
the corresponding period of last year. The
increase in the net earnings for May COM
pared with the preceding May for the roads
so far reporting amounted TO over IL per
cent. This encouraging showing was ig-
nored in the general speculation, and at
tention was concentrated on the more
doubtful or unfavorable factors in the out
look.
The surface ease and quiet in the money
market are regarded as somewhat illusory
and probably due to other causes than q
real abundance Of available funds. For one
thing money lenders are inclined to keep 9
1 large proportion of their funds in easily &C
1 cessible form, and as 4 consequence there
; are free offerings of call loans and tins
t leans for the shorter periods. 1t is known
= that large stock commission houses in Wal
) street which have supplied themselves will
speculative move are Keeping much of i
l out on call. For periods of six months an(
longer there is an active demand for money
t and extreme conservatism in placing it
Advices from interior money markets ar,
e of an active demand and a hardening tone
4 with evidences of an early pressure on in
Y terror reserve cities, which has led to a ces
( sation of the interior movement of currency
: towards New York. This situation is com
plicated with the weeks large outgo of golt
and the scarcity OF commercial exchang,
bills, due to the small outgo of cotton ant
grain incident to the high speculative price.
ruling the markets for those staples. Th'
weeks violent break In the cotton marke
was regarded hopefully in the financial dis
trict as promising to put an end to the ar
tificial conditions existing in that market
but the later cotton market seemed to shov
the speculative forces still i'm control. An
= other symptom of the underlying hardness
n of the money market is the reported difi
e Guilty of securing funds by financial syndi
e Gates and the high interest rates which 1t /
d understood are being paid.
t The most striking Indication of this condi
= ton Of the money market has been the de
5 cline of New York Central stock in the fac
: of the needs of the corporation to rails
d capital for carrying out the extensive ter
> minal improvements which Ii has under
d taken. The inference that the 81, 600. 900 O
stock in the cOmpany's treasury might b
!; coming on the market has resulted in
y price of the stock. The general mortgag
= 3a per cent. bonds of the company, o
; which a residue in the treasury are avail
able for issue, have also broken throug
par for the first time in their history I
several points below.
y The decline in net earnings compare
u with the corresponding quarter Of last yea
II is explained by the prevailing freight block
ade on the railroads, which obstructed tn
supply of material as well as the delivery c
= product. But reports from the iron an
steel trade of increasing production of pi
" iron, accumulating stocks, a yielding tend
ency in the market for products and RI
mors of a cut in steel billets proved NOR
d Influential on the market for the securitie
than the claims for earnings. Stocks of ir
re- dependent iron and steel companies an
IS stocks of the metal industry generally bs
1t came weak. The successive development
Of difficulties In the financial affairs Of til
to newer industrial combinations kept alive
IS somewhat indiscriminate feeling of distrus
Is of that whole class of securities. The d
rect news from the crops has been consit
40 cred favorable and the Weather Bureau
weekly summary reported the most favor
b. able week of the season. But prices of Gel
a calls have advanced and the fear of an III
m favorable showing Of conditions by the Az
a ricultural Departments monthly repol
y proved the dominant factor in the graf
70 and stock markets. The element of risk Il
~ the corn crop by reason of its lateness he
also been much dwelt on in stock mark
~ circles.
il Prices of bonds have settled to a low
D. basis generally, although some of the fl
MS vorite active issues have been comparativ,
ly steady. United States twos advanced :
ee the threes and old fours u and the fives
20 ssa per cent. as compared with the closing ca
OF last week.
as Following are Saturdays share sales or
OF the recorded price changes:
n; High Low Gle
10 Sales. est. est. 81
40 Atchison ................ q. 800 e5s 635s "a
" Atchisop pref.......... l,5N ?0h 30 50
N 0L q