The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-08-14
The Reaction from the Recently Pre-
vailing Extreme Depression an
Important Factor.
READINGS SENSATIONAL RISE
ITS STOCK GOING UP ; u.s. POINTS
STARTED RUMORS.
United States Steel Stocks Purchased
ON a Large S~cale-BOnd Mar
ket Strong.

NEW YORK, Aug. 13.-The recuperative
forces in the stock market gathered re-
sources to-day with the result of a buoyant
uprush in prices on a very animated buying
movement. The rate of activity during
the forenoon session of the market prom
ised the largest days business for the cur
rent year. The market afterwards showed
some signs of WEAKNESS at the rate Of the
movement. The recovery was the result of
a series of incidents rather than any one
development. Natural reaction from the
recently prevailing extreme depression was
an important factor. The mere sentimental
effect of the recovery after the gloom and
apprehension that have prevailed SO long
in Wall street was considerable. Immense
relief from the constant threat Of forced
liquidation or of bankruptcy, which 1T is
not unfair to assume has been hanging
over some houses, naturally predisposed the
whole financial community to take a more
cheerful view of prospects. Where efforts
for a long time past to market the securi-
ties have met with almost no demand there
was substituted a lively and urgent demand
for stocks and bonds of all grades to-day.
The urgency of some Of the buying and the
violent advances In prices showed clearly
~ ~
cover their contracts before the rebound
carried prices beyond their reach was an
important element in the market.
Bidding up of prices by opposing pro-
fessionals to force higher prices out of
the bears was another palpable influence.
Blu it was evident beyond this that there
was a large and substantial buying element
In the market, which was taking over
stocks of all classes with freedom and con-
hdence. 1t is not to be presumed that the
buyers have so suddenly changed their
opinion of the financial and business out
look. But the conviction has been growing
That the long decline in prices has been
more than sufficient to Offset the unfavora-
BILE factors in the situation, and that the
necessities of the money situation have
been forcing the selling of securities to be-
low their true values. The event proves
the contention of those who have MAIN
tanned that there was a large waiting de-
mand for stocks which would come into the
market freely when the liquidation seemed
to be concluded and prices definitely turned
upwards.
The taking over of the Seaboard Airline
in the Rock Island interest had a stimulat-
1t furnished proof that not all the large
interests were hard pressed TO hold their
undigested securities, and that the fnan-
cial necessities in some quarters might
prove the opportunity I'm others for extend
ing influence and consolidating control.
Rock Island itself, as we'll as Southern
railway ILLINOIS, central ana LOUISVILLE IL
Nashville, all shared in the days strength,
rejecting the impression that the new ar
r~angements tend to community of interest
in the Southern railroad field.
A number of stocks of minor
supposedly available for absorption by
more powerful %neighbors, were strong. The
feature of the day was Reading. Its SEN
sational rise of SIS gave rise to many ru-
mors regarding new projects for division
of control and guarantee of dividends. A
very favorable showing of July net earn
ings is expected for the road, as well as
for other coalers. Baltimore & Ohio's in
crease i'm July net of $11 ,625. thus conserv-
ing nearly half the gross increase, helped
the soft coal group. But the rise in prices
was so comprehensive as to require no
specifications. United States Steel stocks
did not share fully in the days strength,
although they were bought on a large
scale.
The conference of members of the Senate
finance m with the President gave
rise to assumptions regarding the scope Of
plans for financial legislation, which were
used with effect to further the advancing
tendency of prices. The buying movement
showed some signs of exhaustion at the
last, and the market closed irregular and
below the best.
Bonds were strong. Total sales, at par
value, were 81, 245,0 600. United States bonds
were unchanged on call.
Following are the days share sales and
the recorded price changes: