The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-05-23
BETTER TONE IN STOCKS
DUE CHIEFLY To FORECASTS OF A
GOOD BANK STATEMENT.
Underwriting of New Pennsylvania
Stock Issue eavyBreak
in Sterling Exchange.

NEW YORK, May 22.-To-days early
stock market did not give good promise OF
maintaining the strength which developed
yesterday, but the announcement that
bankers syndicate had been formed TO I'M
derwrite the new Pennsylvania stock issue,
caused a sudden upward squirt in that stock
to a level points over last night. The
stock held that point but momentarily and
did not get back TO the top level again for
the rest of the day. In the general market
the average high level for the day was
touched in the afternoon when the prelmi-
nary estimates of the cash movements for
the week were published showing an un-
expected heavy receipt on balance from the
interior, thus affecting the weeks loss by
good exports, which il was feared would
make to-morrow's bank returns very weak.
There was sufficient selling to take pronts
during the last hour to make considerable
inroads on prices, and the close was dull
and heavy below the best. The net changes
for the day are mostly very small and are
mixed between gains and losses.
There was continued heavy selling this
morning of st. Paul and the Eries and the
United States Steel stocks were inclined TO
be feactionary, the latter on account of the
further cut in prices of iron. Union Pacific
was inclined to lag throughout the day in
| spite of the claim of definite settlement
of its labor dispute. The news of the I'M
| derwriting of the Pennsylvania stock issue
| did not hold it's first stimulating influence.
The underwriting is in effect protective
measure to assure the taking up of the
| issue at 40, at which price it was offered
Pennsylvania was selling above 140, so that
| the right to subscribe at 120 seemed suffi-
| GENTLY attractive. But from the first
| knowledge of the issue there has been per-
| sstent selling of the stock against the ex-
| pected new issue and of the rights to sub
| scribe to the new stock. The decline this
week to 1854 brought within measurable
distance the extinguishment of the value
of stockholders rights to subscribe.
! The news that sufficient money had been
| sent TO New York from the interior TO onset
pleasant surprise. The known movements
| OF money indicate net gain by the banks
| of several hundred thousand dollars, the
receipts. on balances from the interior
| amounting apparently to over $4OOO,OOO. The
| subtreasury absorption, which includes
| payments for the gold exported was 3d.
$4,000. But this does not take account of
the 100000 in gold shipped TO South
| America last Saturday, too late for effect
| on last weeks bank statement. Arrange
| ments have also been made to ship s1,50O.Uo
| to South America on Monday. Sterling ex-
change broke fully Is points to-day in re-
! spouse to the reduction on the Bank of
| England rate. London continued to buy
| stocks here to-day, thus increasing the
| supply of exchange, and the figures of the
weeks grain exports show an increase over
last week for wheat of 1.195, III bu., and for
| corn of $50, 929 blu. The market still shows
itself sensitive to the cotton speculation
and the opening strength in that market
| was an influence in the reaction in stocks
| of the first hour.
The bond market was firm. Total sales
at par value were $2,220.00O. United States
bonds were all unchanged on the last call
Following are the days share sales and
4 the recorded Drica CHANCES.