The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-09-27
Break i'm Prices Is Dreaded on Ac-
count of the Panicky Conditions
Ii Might Cause.
BULLS FEELING PESSIMISTIC
IMPAIRMENT OF CREDIT LIKE 4
CLOUD OVER WALL STREET.
Most Notable Selling Pressure Is i'm
Steel, ID. & .. and the Traction Sc
curities-UnsettIed at Close.


points of the urgent and precipitate charac-
ter which threatened the situation on
Thursday, and which was checked by yes
great banking interests.
The course of the London market this
morning indicated that the stock purchased
yesterday for supporting purposes would
be for sale again at any favorable market
opportunity. This had the effect of dis
couraging the professional operators, who
were planning for a turn on the long side
of the market, having closed out their short
accounts yesterday. The market also de-
veloped evidences OF support on declines.
The obvious purpose is to bring about
condition of greater stability, pending the
working out of the financial situation. A
disorderly break i'm prices is dreaded for
the pancky conditions which it might bring
about, but the feeling continues general
that there is liquidation still to be effected.
1t is also considered undesirable to under
take any campaign for an advance in face
of the money requirements for the crops.
The bank statement was regarded as sat
isfactory, and especially in the lower con-
traction of upwards of 5000, 900 rejecting
the good progress made in the necessary
process of liquidation. Hopes are enter
tanned that this process will begin to be
effective in removing the impairment or
credit which has overhung the market like
a cloud and infected all minds with dis
trust and apprehension.
The most notable selling pressure to-day
was in the United States Steel securities,
Baltimore & Ohio and the fractions. Unit
ed States Steel fell to yesterdays low rec
ord, and the preferred to within one-fourth
of it, while the bonds made new low rec
ord at 70L. The weakness in these securl,
ties continued to have large sentimentaI
effect elsewhere in the list. Inc seiiins
which developed on the favorable pank
statement was also evidence Oh the con-
tinued purpose and probable necessity 10
sell stocks on every avallapie oppoI tuIi,.!'
The market closed unsettled and irregular.
REVIEW OF THE WEEK.
The dull and sagging tendency of prices
during the early part of the week gave
wav to acute weakness and semi-demoral-
ization later, giving the market on Thurs
day evening much the appearance it had
in July. The serious break in prices in
duced some support later by the larger hnah-
cial interests. The urgent and continu-
Gus liquidation was not explained by any
DEVELOPMENTS in the business or nnanclal
world and a number of incidents when were
favorable in their character were totaily ID
nored The news from the various crops
and the price movement OF the great aSrl-
cultural staples We're convincing OF the
growing assurance of safe harvesting Oh
n sufficient supply to afford good export
able surplus The harvests of the year
have been looked upon for many months
as vital point in the problem OF the
working out of the inducements In winch
capital and enterprise had become en-
tangled This news was taken advantage
of to market stocks. The oner or the sec
10 q
the government fives with the six months
interest to maturity was accepted as q prac-
teal guarantee against strlngency In the
fall money markets. But instead OIL ilci IL
ing any buying of stocks, 1t was used as
a symptom of some underlying danger I'M
known to the general public which II was
sought to avert. There was a large move
ment of currency TO New Orleans Tor the
movement of the cotton crop. This was re-
garded as gratifying from monetary ana
Industrial standpoint the early movement
of that crop insuring an increased supply
for manufacturing purposes and a replenlsn-
ment of exchange bills to increase our de-
mands on foreign money markets. Inc
freer movement of grain in the West was
satisfactory for the same reason, although
IL serves to turn the tide of the currency
movement in that direction: Railroad earn
showed high level OF activity and pros
perity there.
LACKING IN EFFECT.
These apparent incentives to buy stocks
were without the slightest effect and the
demand for stocks was seemingly par,
alyzed. On the contrary, every development
of an unfavorable character was given
close attention and was decisive in shap-
ing the speculative sentiment. The most
effective of these developments was the
recedirg tendency OF the iron and steel
market and it's effectiveness was rein
forced by the reports of closing down OF
mills at various points by meetings OF iron
producers to discuss means for curtail1ng
production, and by rumOrs OF all degrees
of credibility of cancellation OF orders and
trainloads of iron products crowding the
rails and refused for delivery. The specu-
lative opinion in Wall street seemed to have
settled down to conviction that Industrial
reaction and an economic crisis were fore
Swallowed by these Indications. These
gloomy forebodings find Endorsement
from trade authorities I'm the iron and steel
trade, nor in any other trade. Reaction is
admitted, but the admissions accom-
panied by assurances that the normal de-
mand for products is undisturbed and
awaiting supply at a normal price level,
which had been exceeded in the boom
period These assurances over the trade
situation were supplemented by attempts
to explain the steady stream of liquidation
as the special cause; aside from the depres-
sion in general business. No extension in
new enterprises which have proved failures
after tying up volumes of capital is the
principal cause assigned for the liquida-
ton.
CONFIDENCE rs LACKING.
The failure to save the Consolidated Lake
Superior Company from bankruptcy is the
most important case in point. That an en-
terprise in which s3O,Oo0.0O0 was made in
actual outlay was unable TO raise s5,000000
TO avail itself of profitable business was ac-
copied as a commentary condition
probably existing in other quarters. Much
of the liquidation was supposed to be an
outcome of this collapse and of other enter
prisCS suffering from a similar starvatio
OF capital. 1t is believed also that many
margined accounts which were tided over
the summer weakness in the stock market
on condition that they would he liquidated
at the first favorable opportunity have been
| forced TO sale. Some of the collateral taken
| over by banks and others from firms is also
said 10 have come upon the market. But il
is evident, Notwithstanding reassuring
statements. that profound distrust and APP
| prehension have taken hold of the specula-
! tive mind.
| Bonds have declined in sympathy with
, stocks. United States new fours advanced
| x. the fves l, the old registered .. The
| twoS declined IL per cent. as compared with
] the closing call of last week.
Following are the days share sales and
! the recorded price changes:
High Low. Close.
RAILROADS Sales. est. est. Bid.
Atehison .................... "a go s3a GA 62k
| Atchison pfd. ......---... 500 ssis Ss4 S.is
/ Baltimore * Ohio -.-..... Hs25 GOA 1875 1875