The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-07-16
STOCKS UNDER PRESSURE
MONETARY ExIGExCIES GIVE COUR-
AGE TO THE BEAR ELEMENT.
Stocks Raided on All sides, but the
Net Losses Are Diminished by
Periods of short Covering.

NEW YORK, July 15.-The violent liqui-
dation of stocks and bonds continued on
the Stock Exchange to-day and established
the general low level of values for the year.
The money exigencies of the New York
Central. which was the particular develop
ment on which the present selling move
ment started, widened so to take in the
railroad world quite generally. Yesterdays
late announcement that the Chicago, Bur-
lington & Quincy had borrowed s5.OOO,O0O for
a period extending over into next March on
a per cent basis was supplemented to-day
by the official announcement that the Union
Pacific Company had negotiated its notes to
the extent of s10,0O0,00O for q year and half
also practically on per cent basis The
authoritative news of the day regarding the
money requirements of the great railroad
corporations was supplemented by count
less rumors of all degrees of credibility
pointing to urgent money needs on the part
of the railroad world in general and indi-
vidual capitalists in particular, and alleging
that great sacrifices were necessary to be
made to secure funds in hand.
The effect of this condition was to provide
a field day for the bears In the stock mar
ket. This element of the stock brokers was
diligent in pursuing their advantage all day
long. and the extent of their operations on
the short side left an effective requirement
for stocks towards the end of the day. The
buying of the bears to cover caused
strong rally In the market, which wiped
out the earlier losses in some cases. notably
in st. Paul, New York Central, Reading
and Norfolk & Western. The days losses
in the active list were not greater at any
time than are frequently shown during an
active selling movement, the range running
generally within one TO three points. But
| in the inactive list, and especially among
| stocks regarded as of a high investment
| grade, there were some drastic cuts in mar
| ket values. In many cases these compare
with long-standing quotations made on all
sides and result from the marketing or
| comparatively small blocks OF stock. The
| inference Is plain that these represent a
| sort of revision Of book values.
While the assumption is warranted that
| such sales are made to supply urgent
! money requirements there is a possibility
| also OF the attraction of the present rates
! In the open money market inducing the SELL
| ing of securities to employ funds in that
| way. This Is the natural process by which
| prices of securities adjust themselves TO the
| level OF the money market. That money
| is at present in active demand at high rates
| and is likely to continue so for a consider
| able period is a just inference from all the
| existing phenomena in the money market
and the stock market News from various
points of projects of combinations of gas,
| electric light and trolley companies show
| sources for additional demands for money.
| Some of the declines in high grade invest
ment stocks to-day ran all the way from 4
| to 20 points and included such stocks as
| General Electric, Westinghouse Electric,
| the New York. Chicago & st. Louis pre-
| ferred stocks, Nashville. Chattanooga & St.
| Louis Lackawanna, Delaware & Hudson,
| Pittsburg, c., c. & st. Louis, United States
Express. st. Paul preferred, Brooklyn
| Union Gas, Buffalo. Rochester & Pittsburg,
| Long Island, etc. In the active list Penn
! sylvania, New York Central, the Pacifcs
| and the United States Steel stocks were
| most heavily sold. There was enormous
| short covering at different times during the
| day, the breaking out of depression at new
| points being used to cover to advantage
| where declines had already occurred. The
| routine news of the day outside of the
money situation was entirely ignored. The
| close was rather irregular, owing to some
| fresh recessions just at the last.
The bond market reflected the pressure of
| liquidation rather more generally than
| heretofore, and there were declines Of / to
| IA in many favorite bonds of what may be
| called secondary grade. Losses among
| the speculative issues reached as high as
| or ga in some cases. Total sales at par
| value were $3,7S0,000 United States twos
| were all unchanged on the last call.
| Following are the days share sales and
| the recorded price changes: