The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-05-08
LOWER RANGE OF PRICES
STOCKS TURN DOWNWARD WITHOUT
APPARENT SHOW OF REASON.
Trend of Foreign Exchange Still in
Favor of acknowledgements of Rock
Island-San Francisco Deal.

NEW YORK, May 7.-Prices went down.
ward on the Stock Exchange to-day with
out any very clear reason, although the
theories current for the decline took
wide range over the whole financial field on
the part of the board room traders, who
had the market to themselves. The simple
explanation seems to be that these pro-
fessional operators who have been buying
and bidding I'D stocks to a moderate ex-
tent during the week find themselves with
little company and feel that they have
reached the limits of their courage in
speculative commitments. The process of
selling to take profits finds as narrow
participation in the market as that during
the advance. Prices consequently receded
easily and in pretty close proportion to the
advance on the same volume Of dealings.
The factor which came in for most dis
cussion to-day in. seeking an explanation
for the decline was the problem Of the
foreign exchanges and possible gold ex-
port. The developments in connection with
the new Transvaal loan, for which SUBJ
scriptions were opened to-day, were of
foremost significance as bearing on the ex-
change question. The terms of the loan
are much as expected, and the strength Of
sterling reflected the continued direction
of funds toward London. Subscriptions for
American accounts are small, but the ma
turity of foreign loans in this market
makes the London pressure for money
effective in New York. Only per cent. Of
the subscriptions is required to be paid
on application, but the oversubscription
promises to be great that it is estimated
that applicants will not receive over
per cent. on the total application. The
immediate pressure for credits in London
is thus easily understood. The pressure
on the exchanges in favor of London Is
likely to relax very suddenly when the
subscriptions for the loan are closed.
Meantime the question of gold exports is
still open.
Another cause to which the days de-
preston Is attributed was the slump in the
sinking fund bonds of the United States
Shfpbulldfng Company. These bonds have
never had more than a nominal market,
but their last sale price on the Exchange
was 50. They were offered at that price
to-day, and then at successive concessions
as large as % per cent, at time, sales
OF this incident was offered. The activity
of the bear faction apparent in the
circulation of rumors Of the serious illness
or conspicuous operator in stocks and
also In vague assertions of coming bond
issue by a Western railroad for much as
$350O0,OOO. Neither of these rumors was
subStantiated. Favorable factors were
wholly ignored. There was much greater
show of authority to-day for assertions
that the suspended Rock Island and ST.
Louis q San Francisco deal was about to
be contaminated. The market closed with
general conviction that an announcement
was imminent.
Bonds were irregular. Total sales, at
par value, were Sl,41O,oOO. United States
twos, coupon, advanced u and the new
Tours declined a on the last call.
Following are the days share sales and
the recorded price changes: