The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-08-02
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 signifi-
canoe could be attached to the movement
of prices. which was very narrow and slug
gish, except in few individual stocks in
fiuenced by special causes. There was sell
ing of Rock Island, induced by the criti-
cisms of the proposed refunding bond issue.
Peoples Gas more than point on the
declaration of the regular quarterly dlvi-
dend. There a gain of a 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 of the firms which failed
last week. The market was almost wholly
made up of such scattered movements. The
decision in favor of the Northern Securities
Company of the suit brought against it by
the State of Minnesota caused 4-point
jump in that stock on the curb, but the re-
Spouse in the general market was barely
perceptible.
The increase in loans reported by the
bank statement was of more effect, as
much had been made by the speculative ele-
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 s5.OOO00e on the
International Mercantile Marine underwrit-
| ing and of s3,5OO,OOO on the Louisville G.
| Nashville bond underwriting had to be pro-
| vided for. Bankers also report that there
= .x1I
| 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 Equida-
| ton involves buying 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 specialtes. 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 hypOthecated 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 as the
| renewed liquidation on any advance of &C
| counts allowed to carry over the period or
| 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 situation. The fall in values has
| resulted in an enormous shrinkage in the
| available basis for credits and the POSSIBLE
| ity is canvassed of a contraction Of credits
in commercial lines as later sequence.
| Chase National bank in an interview which
| has commended widespread attention and
| comment in Wall street, uttered distinct
| warning of the danger of overextension OF
| credits at this time in commercial lines as
kell as in promotion projects. The note of
| conservatism is still dominant in the imam
| cial world and the uniformly favorable 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 & Terre Haute
for the Rock Island system served to re-
| vive some talk of combinations and abb
| sorptons of railroad systems. There has
been a theory among a certain class of
stock market operators that the present
fall in stock prices is the result of con-
| certed campaign by 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-
lagant valuations at which the great mer-
i gers were carried through But this con-
| tention leaves out of account the great
facility with which the new securities is
| sued against the collaterals of the stock
to an eagerly buying public. There is little
| encouragement 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 rates has
| been largely nominal, however, and lenders
| 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
of last year. The case of stocks which are
| 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 it has been for many
months.
The bond market showed some breadth
and the usually active issues moved irreg-
ularly i'm sympathy with stocks. Among
dormant investment issues with preceding
transactions dating some time back trans
fers were effected only ut wide concessions
United States threes have declined l and
the old tours IA per cent. on call during
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