The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-08-06
Fading Away of Prices of Securities
Arouses Grave Fears on the
Part of Brokers.
TWO FAILURES REPORTED
NEITHER WAS A GREAT SURPRISE
TO THE OPERATORS.
Desire to Convert Collateral Into
Ready Money Strong Basis for
DemOralixed Conditions.

NEW YORK Aug 5.-The hour for clos
ing to-day~s stock market was hailed with
relief by the highly-strung members of the
exchange. The day was one of excitement
and alarm, and the fading away OF the
prices of securities was so rapid and COM
prehensive as to arouse grave fears or the
consequences. The announcements of two
failures were the only actual disasters TO
develop, and neither of these was a sur
prise. Some of the days liquidation was
supposed to be of collateral on the loans
of the failed firms, although it was officially
announced in one case that the creditors
had decided to withhold the collateral from
the market In its present condition. 1t was
evident that very general closing out of
collateral in loans was in progress, and
much of it was allowed to go for what 1t
would bring. AS the demand for stocks
Is still exceedingly light, the natural re-
suit was a decentralization OF the market,
and the pressure grew more acute by the
reactionary effect of the selling in forcing
shrinkage of the collateral in other loans.
So far as the news of the day was con-
cerned, there was very slender basis for
the sacrifice of securities beyond the uneasy
sense that collateral could not be readily
convert it into ready money. This is the
essence of decentralization in any market,
and it had it's natural result to-day.
Expectation was at high pitch at the
opening and decentralization was prevented
only by the most vigorous and determined
support on the part of banking interests
and market managers for various prominent
stocks. The support was especially notable
in the United States Steel stocks. and sue
ceeded IN raising the price of the common
a point and the preferred Us over last
was helped by the fact that some of the
developments which were feared from yes
terday's meeting did not occur. AS the
weakness of these stocks was a potent fac
tor in the weakness OF yesterdays market,
the strong support accorded them this
morning had soothing effect on sentiment.
The result was pretty general recovery
from the opening declines. Then came the
announcement of the first failure, that of
an important house with commitments in
a variety of stocks. From that time until
the close the liquidation was internationally
pursued, with occasional rallies on short
coverings There was an eager rush 10
cover among the bears in the final dealings,
but even then there were renewed breaks
at other points, and the closing was ex-
tremely nervous and excited, with irreg-
ular fluctuations. The United States Steel
stocks suffered comparatively small losses,
but both the common and preferred and
the sinking fund per cent. bonds touched
low record prices during the day.
Liquidation in Missouri Pacific was very
violent and ii suffered an extreme loss of
SIS. Much of the liquidation in this was
attributed to the account of one Of the
suspended firms. 1t carried down Wabash
preferred points with 1t. Erie was also
very heavily sold the day progressed.
The Pacifics and grangers were under
steady pressure during the most of the
day. The violent declines in the Colorado
& Southern stocks, the Southern Railway
stocks and Virginia Carolina Chemical were
associated with the failures Some of the
high-priced comparatively inactive stocks
were severe sufferers, American Snuff
breaking Is and New York Air Brake, Pull
man. Consolidated Gas. General Electric and
Chicago & Eastern Illinois certificates from
firmer, but there was nothing in the time
money market to explain the pressure to
retire loans. A further sharp break in
sterling exchange caused an APPROACH in the
rate toward the gold import point
Profit taking in the grain markets was
satisfactory development which was off
set, however, by the continued speculative
manipulation in cotton. cut in price of
steam coal by the Reading and talk of a
Rock Island strike, which was denied, were
made something of by the bears. Satisfac-
tory reports of railroad earnings, includ-
ing Is per cent. increase I'm gross earnings
Central, were without any influence upon
sentiment.
Bonds were weak in sympathy with
stocks. Total sales, par value, $3.50 900.
United States bonds were unchanged on
| the last call.
Following are the days share sales and
| the recorded price changes: