The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-03-10
PRICES RECOVER SHARPLY
REACTION AFTER SATURDAYS SEMI
PANIC is ALL UPWARD.
The Few Early Losses Wiped Out and
Good Gains Established Elsewhere
Better Monetary Conditions.

NEW YORK, March 9.-The action of the
stock market to-day verified a wall-street
aphorism that the expected does not hap
pen. A disorganized market and violent
declines were looked for to-day, by COM
mon consent. The event proved that the
opening prices where there were declines
were the lowest. The factors that made
for recovery were at work from the outset.
There was a vigorous contest of the ele-
ments for reaction and recovery during an
hour of furious activity. By that time the
reactionary tendency had been arrested.
and the recovery gathered force for the rest
of the day. The closing was rather I'M
steady, but not far from the top level.
The stock markets habitual disinclina-
ton to do what is expected is due to the
keenness with which operators are able to
anticipate the future. 1t was clear enough.
from the weakened condition of the banks,
as shown by Saturdays bank statement,
that liquidation of stocks must be resorted'
to. This expectation proved correct to-
day. The banks did i'm fact call loans to
very large extent, and stocks were thus
dislodged and forced on the market. But
the keen foresight of the bear party had
evidently been anticipating the coming Of
this forced liquidation by their large sell
ing of last week, so that they were ready
to buy stocks in order to cover their short
contracts and take their profits to-day.
Buying of this character forced fractional
advances in Union Pacific and Southern
Pacific In the very face OF the opening
tide of liquidation, which was aggravated
by the accumulation over Sunday of SELL
ing orders by mail, telegraph and cable
from all quarters.
1t also developed during the day that
while the local banking houses were call
ing loans the foreign banking houses in
the city were in abundant funds. They were
able to make loans on call at the opening
at per cent. The exchange market was
freely resorted to to replenish the funds Of
this lending. so that the call-loan rate was
forced down TO per cent, even while the
active borrowing of the day still in
progress, and money rates broke to NOM
inal figures after the demand had been sat
isfied- The sterling rate broke 60 to %
points under the flood of loan bills offered.
Posted rates were twice reduced ~ cent at
a time. AT the same time sterling de-
clined at London, indicating the extension
of the New York pressure over wider
field. New York exchange at st. Louis also
recovered to par, compared with 20 discount
on Saturday.
ing the money supply thus relieved the
pressure from the shorts became more
acute, and later in the day they rushed up
Southern Pacific 4s4 over Saturdays level.
The rise In Union Pacific reached over 3S.
and in ST. Paul, Manhattan and Anal
gamated Copper over a point In the ac-
tive list the earlier losses which ran from
l to points in many cases, were gradually
wiped out, and the net gains reached as
much as point in quite number of lead
ing railroads and specialties. The influence
of the failure in the dry goods trade an
nounced on Saturday Afternoon, which had
been much dreaded, proved to be very
slight, owing to the time afforded to Sc
cure explicit knowledge of the failure and
the evidence that the trouble had been
stricIiy localized.
The bond market, which had been quite
weak during the morning, recovered in
sympathy with stocks. Total sales at par
value were $31S0.O00. United States bonds
were all unchanged on the last call.
Following are the days share sales and
the recorded price changes: