The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-06-22
WEEK in WALL STREET
NARROW AND IRREGULAR FLUCTUA-
TIONs IN PRICES.
Pessimistfc Feeling Underlies the
StagnatiOn I'm Speculatfon-Price
Movements Of Saturday.

NEW YORK, June 2O.-To-days stock
market made some Roadway against early
depression which seemed TO be reflected
from London. but the disappointing bank
statement carried prices below last nights
level all around The trading throughout
was languid and the movement of prices
was sluggish. Very few transactions were
of an origin outside the board room. Some
support seemed to be accorded to The
United States Steel stocks and the coalers.
The continuance of this years schedule of
prices for steel products and the an
nouncement of the placing of large orders
for steel rails helped the steel stocks and
was an encouraging factor for the whole
market. There were some special points
of weakness, notably Smelling. Its de-
cline of 25s was due to disappointment
over the failure Of dividend action at the
recent directors meeting. The weather
reports from the corn belt and the firm
ness Of the cereal markets as well as the
rally in cotton had an unsatisfactory eff
feet on stocks ard the report of the dam
ger Of a passenger rate war in the North
west were not liked. Instead of the ex-
pected increase of S5,OOOOOO in the cash in
the banks the weekly statement shows a
gain of only $1.359,S0O. Last weeks gold
exports to South America, which were
too late to figure in last weeks statement,
would account for only small part Of the
discrepancy. Holiday and vacation re-
quirements are supposed to have made
some local demands on the banks. The
increase in loans, although small, detract-
ed from the benefit of the cash increase
in the surplus, which was recuperated only
$622, 400 A rise in the discount rate at
London and a sharp decrease In sterling
cd n m
crease the pressure for gold on New York.
Narrow and irregular fluctuations have
marked the weeks operations in the stock
market. The renewed decline early in the
week after last weeks sharp recovery was
viewed with some anxiety lest 1t might
indicate renewal of the liquidation which
would carry prices to a lower level than
before and precipitate new burdens on
the market. But support developed before
prices got down to last weeks low level
and the uncovering of fresh stop loss
were thus avoided, such, orders having
been largely cleared off brokers' books
by the previous decline. The professional
operators In the market pretty generally
accepted this as a demonstration that
large and urgent liquidation had been
completed for the time, but that any at
tempt TO lift prices to a higher range was
likely to encounter fresh pressure to sell.
Bear tactics to depress prices, on the other
hand, seem to meet buying orders of a
substantial character, which take stocks
fortify the market. This kind of buying,
however, shows itself extremely cautious
in following any advance in prices. The
natural result is the sluggish and waiting
market which developed in the latter part
of the week.
Current discussion in Wall street con-
Germs itself as much with the sources and
motives of the recent extensive selling OF
stocks as with the prospects Of the future,
although the key to the future is sought
in the knowledge of the cause of this sell
ing. That the necessities of wealthy cap
italists. overextended in new enterprises,
have been an important factor in the
liquidation Is more and more accepted In
view of developments in the financial
world and in the law courts. In the conf
dent early day Of the present period of pro-
motion the underwriting syndicates which
borrowed money for their temporary hold
ings unloaded their securities on new buy
ers and liquidating their borrowings while
the new securities made their appearance in
the collateral for loans for new ventures.
When the continuing stream of new
curities began to congest in promoters and
syndicates' hands and the public appetite
began to be satisfied, or its confidence to be
impaired, the syndcates began to find less
facility in securing resources to repay loans.
The enormous outstanding volume of credits
for such syndicate holdings of securities
for which there was no immediate market
begain to have it's effect i'm restricting the
supply Of credits for regular commercial
transactions. To find resources to repay
loans with which new securities were held,
it was found necessary to sell holdings OF
older and better tried securities for which
there was a reader market. That this
process has involved some heavy losses of
what was hoped to be substantial wealth
may be safely accepted as a fact. But so
far as 1t has resulted In the repayment of
loans for holding new securities and the
taking UP by ownership of such securities
and the process of digestion may be said to
have been effected and the overextension of
credits relieved.
So far as this process has been completed
the future must deal with the soundness
OF the securities or or the Industries which
they are intended to represent. 1t must be
allowed that a feeling of anxiety this
point deeply underlies the depression in the
stock market The resort to the courts by
dissatisfied participants in the United
States shipbuilding organization, and the
charges and recommendations made in
that suit have affected sentiment toward
the whole group of Industrial securities
The fear Of excessive capitalization Is the
more effective on account of the current
doubts over the industrial future. So far
as the labor outlook affects this future an
excellent impression has been caused by
the settlement of the threatened dispute
between the anthracite miners and operators
over the composition of the Cancellation
board. But with the general unrest of
labor and the certainty Of future demands
for higher wages, with the political un-
settlement of a national campaign in sight,
the anxiety over the labor outlook re-
mains dominating factor in the securities
market.
Bonds have moved in sympathy with
stocks. United States threes, coupon, and
the new tours advanced Y per cent, as
compared with the closing call of last
week.
Following are Saturdays share sales and
the recorded price changes:
RAILROADS. Sales est est Rid