The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-05-10
WEEK in WALL STREET
SPECULATION HAS BEEN DORMANT
AND PRICES ARE LOWER.
Many Influences at Work to Prevent
Extensive Commit ments-Future
Demands on Money Market.

NEW YORK, May 9.-Desultory profess
sional trading was all that was in evidence
| in to-days stock market The tone was
heavy throughout and traders professed
| considerable apprehension over the outcome
| Of the situation in Manchuria. The bank
statement was also disappointment. as the
gain in the surplus reserve was only about
half the amount expected from the reports
| of the known movements of money. An
| other loan increase Of over s., 100000 was as
| cribed to the continued transfer Of debts
from foreign TO domestic lenders, which has
kept up the rate of exchange during the
| week to near the gold export point. The
question OF an 0utgo Of sgold next week Is
| left open, as money and discounts were firm
to-day In London, and the exchange market
Kept firm tone in spite of dullness incident
to the Saturday market. The special heav-
mess shown by such speculative leaders as
ST. Paul, Southern Pacific. Atchison, Mis-
souri, Pacific, New York Central and Anal
gamated Copper was attributed to opera
| lions by bear faction. which was designed
70 influence sentiment in the general mar
ket The selling of Rock Island was accom-
panied by surmises as to the effect on the
market OF an additional issue of stock in
volved in the st. Louis & San Francisco
acquisition. A 4-point break in Metropolitan
securities tended to aggravate the depres-
sion to some extent. There was no percept-
BILE recuperative power in the market and
the close was easy at about the lowest.
There was some selling of bonds as well,
which made that department easy.
The immediate influences on the narrow
movement Of prices in the stock market this
week have been Of minor Importance. Con-
sideratons which really dominate the mar
ket for securities are of wider range and
extend so far into the future as to prompt
| waiting attitude rather than active oper-
atoms. Speculation Is depressed and at
times almost stagnant, with the uncertainty
or the problem to be worked out In the finan-
cial world during the coming summer and
fall The condition of the money market
is so easy now as to afford relief from any
pressure of liquidation. The scarcity of the
supply of stocks makes constant tempta-
tion to the professional operators to work
Tor an advance. But they fail to attract
any interest in the market, and their occa-
sional attempts to take profits demonstrate
that they are practically alone on the buy
ing side. Speculation Is, in consequence,
little more than game between traders, in
which the most subtle and agile wins at the
expense OF his fellows. The bulls made a
demonstration for an advance early in the
week with the high-priced coalers as lead
els. Ihey mad as basis some coming
changes In the directing forces in Delaware
4 & Hudson and the very profitable business
| at present enjoyed by the anthracite coal
interests supplying the requirements sus-
1 = "a -<r;Ix N
road earnings generally, as reported this
week, have shown some striking gains, both
IN gross and net earnings. over the corre-
spending period of last year. These show
lngs nave been effective in some individual
stocks in lifting prices. In other cases they
We're totaiiy ignored. The fluctuations in
| occasion or some speculation In the Mexican
railroad stocks and Amalgamated Copper
ANXIETY over the possible harm to the
| wheat crop has become somewhat allayed
by the Weather Bureaus weekly bulletin
and by the liquidation evident in the wheat
market. The admitted damage to fruit and
| 70 cotton has had some depressing effect
The government monthly report is awaited
Tor more comprehensive knowledge of the
CONDITION OF the winter wheat crop. The
proposed amalgamation of the Rock Island
and the st. Louis & San Francisco sys-
TENS has reappeared as factor. The mys-
the plan and the mised D Views .ne he movers IL, in
effect have deprived it of great stimulating
effect on stocks. On the other side of
IN
rest in the labor world is seen to be of far
reaching consequence. There is not SO much
fear OF unsettlement by strikes as of the
constant rise in cost of operation of indus
try and the consequences in reduction OF
net earnings available for distribution to
shareholders. Reports from the West of
is attributed to the unwillingness of manl-
facturers to expand their operations in the
present state of uncertainty over the labor
outlook.
The present ease of money has not OBJ
scured the problem of future requirements
In that field. The large loan expansion by
the New York banks In face of the stagna-
ton of speculation in stocks is regarded as
significant Of the demands overhanging
the money market. The recent large repay
ments Of our foreign obligations are demon
strated by this domestic loan expansion not
to be an effective liquidation, but simply
transfer of obligations from foreign to
various syndicate underwriting and cor
poration loan requirements which are to
be met and which will necessitate the con-
servation Of money requirements II disturb
ance is to be avoided. The course of for
eign money markets has to be considered as
well. and the sustained strength of the ex-
change market this week near the gold
export point keeps alive the immediate in
trest In the question. The issue of the
sl5OoOO,ooo Transvaal loan. easily. explains
the immediate direction Of capital towards
London. But the subsequent course of
the worlds money markets remains SUBJ
ject of conjecture. The retention Of the
IL.
face of this government operation and in
view Of the very strong position Of the
bank with a proportion Of reserve at 51.2
is suggestive of the measures of protection
for the London money market from outside
demands. The large amounts of French
and German capital at present employed in
London explains this necessity. The recent
flotation of the imperial German loan in
duced large Withdrawals of German capital
from London, balances OF German banks in
London having been reduced between 80
and 70 per cent. according to London finan-
cial authorities.
The tone of the bond market is rather
better than that of stocks and reflects a
| moderate investment demand for well-se-
cured mortgages Offering good return.
United States new fours declined Il as
| compared with the closing call of last week
Following are Saturdays share sales and
the recorded price changes:
High Low Closing
/ STOCKS Sales. est. est. bid
Atchison ................... IA, $40 so 79K 1884
Atchson pref. $50 97A 96zs 967s
Baltimore d Ohio......... b,osJ 81 9lS 9l2s
| baltimore e. Ohio pref. 100 93L 9Sl, g2Is