The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-08-03
WEEK in WALL STREET
TONE BETTER AT THE CLOSE THAN
AT THE BEGINNING.
Unrest Over Monetary Conditions and
the Outlook for Fall Credits Is
the Dominant Factor.

NEW YORK. Aug. dealings in stocks
were so small and the tone of the trading
was so Indifferent to-day that little signih-
canoe could be attached to the movement
of prices, which was very narrow and slug
gish except in few individual stocks in
fuenced by special causes. There was SELL
ing of Rock Island, induced by the crti-
cisms of the proposed refunding bond issue
! Peoples Gas rose more than point on the
declaration of the regular quarterly divi-
| dend There was gain of point in Mex
lean Central on rumors of the taking over
| Of a large block by private agreement
North American had the benefit of the pur-
| chase by prominent banking house OF the
holdings OF one of the firms which failed
| last week The market was almost wholly
made up of such scattered movements. The
4 decision in favor of the Northern Securities
| Company of the suit brought against it by
the State of Minnesota caused APPOINT
jump in that stock on the curb. but the re-
| Spouse in the general market was barely
| peroeptible.
| The increase in loans reported by the
bank statement was of more effect, as
1
ment of supposed heavy contraction to be
shown. 1t is evident that the repayment of
the Pennsylvania notes. which was expect
| ed to reduce the loan account of the banks,
has been made in part to trust companies.
| The call for payment Of 100000 on the
International Mercantile Marine underwrit-
| ing and of s3.500.OOO the Louisville &
| Nashville bond underwriting had to be pro-
vided for. Bankers also report that there
| Is growing up a large seasonable demand
for mercantile credits. 1t is intimated, FUR
| thermore, that there has been very large
LIQUIDATION of loans to trust companies dur
| ing the week. The weeks stock market
| liquidation has been admittedly very heavy,
| and the foregoing reasons are advanced TO
| explain why the liquidation is not reflected
in the loan item of the associated banks.
| 1t must be remembered also that liquida-
1 ton involves buying as well as selling, and
| some of the banks have been taking up
| stocks for their customers at what they
| consider advantageous prices. The selling
| on the bank statement was not pursued
| and the market steadied and closed lifeless.
\ Prices of stocks have recovered some
| what in this weeks market and sentiment,
on the whole, has improved. The market
| was unsteady at times on the recovery, and
scattered liquidation was still in evidence
here and there in the specialties. There were
| sufficient doubts remaining, also, over the
general situation and outlook in the country
to restrain the buyer of stocks on any con-
siderable advance. But the forced selling of
| stocks hypothetical in loans has been much
less in evidence and this fact has allowed
| prices to rise somewhat on the demand from
shorts to cover, and on moderate invest
ment demand. There has been apprehension
| of the usual consequence to follow such a
period of drastic liquidation, such the
renewed liquidation on any advance of ac-
counts allowed to carry over the period OF
| acute weakness in the market in the hope
of more favorable opportunity to market
them.
There is some dread. also. of the possible
reactionary effect of the long fall in securi-
ties values on the general business and in
dustrial situa ton. The fall IN values has
resulted in enormous shrinkage in the
available basis for credits and the POSSIBLE
ity is canvassed of contraction of credits
in commercial lines as a later sequence.
Vice President A. Barton Hepburn, of the
Chase National bank, in an interview which
has commended widespread attention and
comment I'm Wall street, uttered distinct
| warning of the danger of overextension of
credits at this time in commercial lines as
well as in promotion projects. The note of
conservatism is still dominant in the finan-
cial world and the uniformly favorabie re-
ports received of general business conditions
from all quarters have not been sufficient to
| change this feeling.
| The announcement of the purchase of the
| control of the Evansville q Terre Haute
for the Rock Island system served to re-
| vive some talk of combinations and alb
| sorptions of railroad systems. There has
been Il theory among a certain class of
| stock market operators that the present
fall in stock prices is the result of a con-
| certed campaign by a powerful financial
| party with the purpose of buying in vari-
| Gus railroad properties, even including New
York Central and Pennsylvania, on advan-
tageous terms. Persons with this theory
have given ready credence to all sorts of
rumors of passing of control The argu-
ment seems plausible that the community
of interest policy might be perfected to
| much better advantage at the present level
| of prices for securities than at the extrav-
| agant valuations at which the great mer-
gers were carried through But this con-
Il ts<xa nItf M ha
facility with which the new securities is
sued against the collaterals of the stock
acquired for the mergers were disposed Of
| to an eagerly buying public. There is little
| announcement for the underwriting by
| syndicates of new securities in the present
conditions of the stock and money markets.
The money market has grown apprecia-
| bly, easier during the week and rates for
six months loans have been shaded below
per cent The market at those err rates has
have shown little anxiety to place loans
at the prevailing rates while the demand
for funds has grown languid. Loans made
on stocks at their present prices call for
smaller allowances for shrinkage and are
more secure than loans on the inflated basis
discredited by fears of bankruptcy is diff
ferent and is the source of weakness in
other stocks sold to protect them. The
working out of the autumn money require
| ment is the problem of first Importance in
the situation, as 1T has been for many
| months.
/ The bond market SHOWeu some DreaQtn
| and the usually active issues moved irreg-
| ularly in sympathy with stocks. Among
| dormant investment issues with preceding
| transactions dating some time back trans
| fers were effected only at wide concessions.
| United States threes have declined l and
| the old tours Ia per cent on call during
| the week.
Following are Saturdays share sales and
the recorded price changes:
| High Low Clos
| STOCKS Sales. Bid
| Atchison .................. 10000 62H 6lB 62i
| Atchison pref Isl eS% ~ IS
| Baltimore Ohio...-..--- 40 SSA 50 SO
| B.. q. pref 10 soh& s6k Sc
| Canadian Pacific go 1225s l22B 122%
| Central of New jersey. $50 1884 1921 1911.
| Chesapeake & Ohio.--...-. -. -. 321s
| Chicago & Aton-...-... 100 ia 21A 81
| c. & A. pref.............. 10 t4as GAS Ga
| Chi Great Western....... l50 l53 15la 153s
| Chi G. w. pref. B. 32