The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-07-16
Decentralization on Change Was the
Most Disastrous Since the Panic
of May 8. 1901.
RALLY TOWARD THE CLOSE
HIGH-GRADE SECURITIES LOST
-FOUR TO TWENTY POINTS.
Uneasiness Created by the Union Pa
ciAc's Action and Increased De-
mand of Corporate borrowers.

NEW YORK. July decentralization
ruled in the stock market to-day making
it, up to the time Of the closing rally, one
of the most disastrous days. since the men,
orable panic of May 9, 1901. New low rec
ords for the year were made in the trading
on the heavy volume of business. Some of
the declines in high-grade investment
stocks for the day ran all the way from
to 20 points.
In the early dealings there was rush to
sell. Prices dropped sharply, and in some
cases precipitately, with active stocks
down and points each, and with an ex-
treme break of over so points reported in
ST. Louis & San Francisco, Chicago &
Eastern Illinois certificates. The decline
was especially noteworthy, however, i'm
such stocks as st. Paul. New York Central,
Union Pacific, Canadian Pacific, Missouri
Pacific, United States Steel and General
Electric. In the last half hour covering of
shorts and investments by bargain hunters
were responsible for partial recoveries in
many issues, and complete recoveries in a
few, like ST. Paul, which closed fractionally
above Tuesdays final quotations.
Traders were naturally disposed to view
the selling of high-grade investment issues
with considerable uneasiness, on the theory
that it represented forced selling by impor-
tant interests who were compelled to part
with their securities to raise funds to pro-
tect speculative acts elsewhere in the mar
ket Several important market interests
were sellers of stocks that had been car
ried on borrowed money for a long period,
the sales being induced by the attitude of
the banks, which directed to call in loans
to strengthen their position, preparatory TO
the expected heavy calls on their resources
for crop movement purposes.
distinctly unfavorable impression was
created by the announcement of an issue
of short-time notes by the Union Pacific
TO the amount of $4,000. 600; also smaller
loans by several other railroad companies.
Following the borrowing by the Burlington,
the action of the Union Pacific and other
roads in going into the market for money
naturally affords ground for uneasiness i'm
speculation circulars, particularly as the
companies are forced to pay stiff rates for
their accommodations. Ii is believed that
the Union Pacific announcement was an
important factor in the decentralization and
that the new demands of various railroads
for money were responsible for the liquida-
ton of many stock market accounts at
serious losses.
The United States Steel issues which
were under pressure the greater part of
the day. made new low record prices Buy
ing OF these shares on the decline was said
to be for the account of interests identified
with the property. but the support was not
sufficient to Offset the sales as an influence
on values.
To Wall street the unpleasant feature of
the situation Is that corporate borrowings
seem to be becoming greater than less.
While this feature persists. IL Is pointed
out. the street cannot hope for easy money.