The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-01-19
STOCK MARKET INACTIVE
LITTLE INTEREST TAKEN BY THE
PUBLIC AT NEW YORK.
Favorable Bank Statement Did Not
Create the Expected Demand-Fea-
lures of the Situation.

NEW YORK, Jan. 1.-THE public apathy
toward the stock market was indicated to-
day by the effect of the publication of the
very favorable bank statement. Traders
had bought a few stocks in anticipation
of the good showing by the banks, but their
attempt TO take profits after the publica-
ton caused melting away of gains and in
some cases their total wiping out. The
known movements of currency from the
statements of the banks themselves indl-
Gated gain of 100000 to 100000 in the
cash item, but the actual gain by the aver
age system of computation shows rise of
upward of sl2,00O.000. Last weeks statement
understated the amount of the actual cash
gain by about the amount that to-day's
statement overstates il, which Is not un-
usual when a heavy movement comes late
in the week. This large loan increase is
normal TO the season, but there has been
no evidence of the employment of so large
a sum as $14 200, 900 in the market this week,
and it is supposed that syndicate opera
tons unknown to the people have figured
in this item The increase of the surplus
amounts to s5,406,S25. The comparative ease
which has been reached in the money mar
ket left only languid interest in the bank
statement. Only Missouri Pacific, Atchison,
ST. Paul, Great Western b, Louisville,
Great Northern preferred and American
Car made any noticeable show of strength.
and their gains were not we'll maintained.
International Power was run up points,
but dropped back 3. The market closed
irregular.
REVIEW OF THE WEEK.
l.. ill.,
airy tendency this week without any dis
tinctly unfavorable developments in the
business situation to account for the change
in sentiment from the week before when
operators seemed to feel great confidence in
higher range of prizes and in the usual
January boom. The action of the market is
seemingly due to technical cause. The spec
ulative pools have desisted from their eff
forts to boom prices have found that
such further efforts as made do not attract
a large outside following.
The money situation seems clear, but the
consideration has reverted-to investment
values, with a result of causing some cessa-
ton in the buying. There seems to be
some divergence of agreement also among
the so-called pools themselves. The make
up of the pools is never a matter of de-
fined knowledge, but the dominant elements
wealthy men Of ample resources. The most
influential class is made up of financiers
whose connections include not only rail-
road and corporation ownership, but in
fiuential ownership also in the great banks
and trust companies upon which the coun-
trys money market Is largely dependent.
Another class Is made up of men of wealth
without such widespread connections in af-
fairs, whose stock market operations are
singly designed for the profit in the change
of the price levels, whether up or down.
a o6 Of fha lat FOR OLE
under considerable pressure during the
money scarcity last fall by the banks and
large money-lending institutions, and were
admonished in effect that the money situa-
ton made ii dangerous to make large
speculative commitments and that the time
was not propitious for pushing f1otations
or projects involving new capital issues.
The disclosure of the purchase of control
OF the Reading by the Pennsylvania and
Vanderbilt interests Indicated that the pur-
pose of new aims had not been suspended
by large capitalists even during the period
when the activity of the stock market
cliques was thought to be repressed. The
renewed activity of this class following the
lieved to be tinctured with some resent
ment over the time lost for themselves In
disposing of holdings while available money
interests for furthering their own projects.
With easier money they have been prompt
to enter upon operations for a rise, en-
| ploying all the expedients known to skillful
| market operators to lift the prices and at
| tract outside demand The suspicion
has grown this week that much of the ap-
pearance Of activity and strength In the
| such expedients, rather than to competitive
| buying to secure control of railroad systems
| or maturing financial projects promising at
| tractive profits in the market. Some of the
| pools in attempting to sell their holdings
| at the higher level have demonstrated the
| feebleness of the general demand, and have
| made inroads on prices.
n
There are very few prominent railroad
stocks in the country whose rate Of re-
turn is or even AZ per cent. at ruling
prices. The growing cost Of operating and
| the rising tide of wages makes more doubt
full the prospect of increase in the rate of
dividend disbursement, even In cases where
| there are large surplus earnings over the
present dividend. From time to time there
are sales at wide declines Of so-called gilt
| edged investments which are so closely
and judiciously held as to appear in the
| market no more than yearly or twice a
| year. The whole subject OF the future
/ rate return on fixed capital is thus brought
| up for consideration, with the possibility
| of a readjustment to a lower price level
| for investment securities. During the week
the Louisville directors have declared the
| same rate as before the passing of control
| Minority holders who followed the stock
| up during the period of the buying had
| hoped for an increase which would fix a
| rate of return consonant with the high
| prices at which they bought the stock. II
| would be remembered that the minority
| stockholders were not included in the of
| fer for the purchase OF the majority of the
| stock. 1t was surprising, therefore that
| there should have been heavy liquidation
| during the week in Reading after the an
| nouncement that the control OF that stock
| was lodged with the Baltimore g. Ohio and
| the Lake Shore.
| The upward course of sterling exchange
during the week has fixed attention or
the PROBABILITY of an outgo of gold 1t is
| known that an outgo in December was
| averted only by extension of obligations
maturing TO foreign bankers 1t was
even suggested that foreign bankers were
| cooperating with the bankers protective
| pool here which subscribed $4,000 600 fol
emergency in the stock market by agree
ing to defer their demands for repayments
The present heavy outgo of grain and
| some buying here of stocks for London
account serves TO ease the exchange situa.
| ton. But Ii is believed the coming REQUIRE.
| ments of foreign money markets for the
| fiotation of government loans will demand
| some shipments of gold from New York
| The heavy government disbursements al
noon on contracts are believed to be abou,
| completed. so that the New York none,
| market is not expected to benefit the same
| extent from subtreasury operations as Il
has since the first of the year.
| There have been some demands for low.
| er grade and speculative bonds. limited
States twos have advanced 1.2 and the ole
| tours and hves IA per cent, while tn,
threes, coupon. and new fours coupon