The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-06-08

DRASTIC LIQUIDATION HAS BEEN
THE RULE in THE STOCK MARKET.
Bank Statement In Regarded as Bad,
I'm View of the Extensive Loan Con-
Observation-Disclosures Is Firm.


market was free from liquidation of the
character of that in evidence during the
week and the operations were largely pro-
fessional. AS stock market loans made on
Friday carry over until Monday. the money
conditions caused no actual pressure during
the Saturday session, and operations based
on them are simply anticipatory and in the
nature of surmises over future effects on
the part of professional operators.
The bank statement evidently impressed
this class as threatening a further curtail-
ment in loans. Instead of decrease of not
more than 100000. was anticipated, the
banks showed decline in cash resources of
sS,4S3, 7O0 AS the largest part of the gold
for export was not Withdrawn until the
middle of the week, il is estimated that 1t
did not figure for it's full effect on the
weekly averages, so that the conditions Of
the banks is believed TO be worse rather
than better than the showing averages.
Fhe local contraction of T.S37.S0 reduced
the reserve requirements considerably. so
that the reduction in surplus was only
s.. 500. but this more than cuts in half
the previous suprlus bringing 1t below the
100000 mark. A further loan contraction
seems to be indicated for next week. The
large loss in cash is attributed to belated
Withdrawals by trust companies to comply
with the clearinghouse requirements for
per cent of cash reserves, which went into
effect on June /. There was some early
Improvement of prices. which seemed due
to covering by shorts, but the selling after
the bank statement carried the average
level below last night
The stock market this week has been un-
der continued pressure of liquidation, and
the urgent character of the selling gave the
impression that it was largely forced. The
effect has been to maintain a gloomy and
apprehensive view on the part of specula-
tors and TO keep buyers out of the market
IOr the most part. On Tuesday and
wednesday there was a tendency towards
recovery even while the Canadian group
was breaking violently on account of the
financial troubles at Canadian points. 1t
was hoped that the cleaning up of Is
weak spot in the market would relieve some
part or the recent mysterious pressure, and
uncovered bear operators were disposed to
close up their contracts on the supposition
that a rebound In prices was in order. But
the next day the advance encountered re-
newed liquidation, which was conspicuous
In pennsylvania and Amalgamated, and the
whole market resumed its previous weak
appearance. Prices In many instances were
carried TO the low Lowell for the present
movement The source of the large selling
and the motives for ii were something of a
mystery in the absence of special news de-
velopment although there were several in
cfdents of the week that were given an I'M
favorable Interpretation. The supposition
In stock market circles was general. how
ever, that liquidation OF long stock was in
progress for the account of large capital
lists to meet special requirements in other
fields.
The hardening of the rates for time money
and a rise in call loans toward the end of
the week carried the first intimation that
immediate conditions of the money supply
might have bearing on the stock market
situation. Call money up to this time has
remained easy, and there is no explanation
for the heavy liquidation In any sign of
scarcity of funds for day-to-day loans
Last weeks insignificant shrinkage in the
loan account of the banks also left the
public In confusion as to what was being
done with the proceeds Of the stock market
liquidation. 1t is inferred that very large
loans have been repaid to the trust COM
panies, and the reds post In the banks has
kept the call loan supply replenished up to
this time. The heavy gold exports are ap-
parently responsible for the shrinkage
While the call money rate was undisturbed
the outgo of gold was regarded with great
equanimity, as the reduction of the cOun-
try's foreign Indebtedness was felt to guard
the market against future encroachments
when the Withdrawals might be more seri-
ously felt. Last fall, when the largest do
1t found difficult to borrow from for
eigners, owing TO the already extensive
credits held from foreigners. which enabled
them to call on New York at the period of
its greatest need. The small impression
made on the exchange market by the mil
lions of gold shipped this week makes it
evident that the metal goes out I'm payment
of maturing Indebtedness, and with no bills
of exchange for sale against the shipments.
With the rise in time loan rates during the
week there came some offerings Of loan bills
in the exchange market, which forced down
the rate slightly. 1t is evident that ex-
ports of merchandise at present are not
meeting the expectations of bankers who
borrowed abroad earlier in the year with
the intention of buying exchange to cover
the loans at maturity.
In view of the situation I'm the exchange
market, the prospects of the crops are
scanned with special Interest In Wall street.
The governments monthly report of the
condition of the cotton crop, showing a low
record average, was therefore of notable
effect on sentiment. The abnormal weather
prevailing I'm the Southwest has also aWak-
ened anxiety regarding the winter wheat
crop, which has deteriorated. The delayed
corn crop is not encouraging. and the prob
lem of its safe harvesting in the period of
danger from frosts is that much added to
the doubtful possibilities of the future
Prices of iron have continued to decline
and the consuming element Is reported 10
hold its waiting attitude in the hope of Sc
curing still lower prices. The quoted level
of iron is still well above that for this time
last year, and the decline from the high
price is explained by an adjustment To the
level of prices for finished products, which
had not advanced In proportion. But the
assertion of the Iron Age that the tonnage
for new work is falling off somewhat in a
number of branches Of the finished iron and
steel trade" causes anxiety over the pros
pect in that trade. Labor disputes in the
building trades are held responsible for this
tendency. The dominant incident i'm the
labor outlook, however, has been the re-
newed difference between anthracite on
orators and miners over the constitution Of
the board of Cancellation provided for bv
the commissions award, and the threat that
the miners will go out again.
Bonds have suffered In sympathy with
stocks. United States twos and fbe ola
tours advanced II per cent, and the threes
y per cent, as compared with the closing
call of last week.
Following are Saturdays share sales and
recorded price changes:
High Low Clos
.siOchs- s s.es est est. Bid