The Indianapolis journal., 1903-08-04
WALL STREET PUZZLED
CANNOT ACCOUNT FOR MAINTENANCE
OF VOLUME OF LOANS
In Face of the Enormous Shrinkage
i'm Value of Securities and Divi-
sion In Basis of Credits.

NEW YORK. Aug. 3.--The stock market
settled down into an almost immovable rut
to-day. Stocks of the first class which ira
versed a range of as much as point might
be numbered on the fingers of one hand.
Union Pacific was the most prominent or
these and was forced down at one time
Il, but was not held there. The selling was
attributed to professional manipulation for
effect on the market. The undertone OF the
general market was in fact heavy but the
drift of prices was quite aimless and slug
gish to a degree close TO inertia. The only
significance to be derived from the market
is therefore a negative one. The total deal
ings fell below the 10000 shares mark. 1t
is necessary TO go back to the summer of
1900 just preceding the last presidential elec-
ton TO find a level of activity as low as that
now prevailing. There were several weeks
in August and September then, when the
average OF transactions was less than
0000 shares and on several days during
the summer the dealings for full day S
session fell TO below 10000 shares The
low record for that summer was on Aug
22, when only 85 252 shares changed hands.
The total dealings for the week ending Aug
"A of that year were only $4,000 shares.
i Inc prlncipai puzzle In & nne tha sltast1i astnnl
ishing maintenance of the volume or loans
of the associated banks in face of the
thorough liquidation to which the stock
market has been subjected The enormous
shrinkage in prices OF securities has caused
an obvious decrease in the basis OF credits,
and the urgent selling Of securities to make
good this shringage in margins or to pay
off loans outright has been patent TO all
observers for months in the stock market.
Conjecture loses itself in the attempt TO
guess what great sinkhole can have alb
sorbed the tremendous proceeds of all this
liquidation with practically no effect on the
loan item of the banks nor of the trust
companies.
The question of possible overextension of
credits outside the securities market and
the necessity for a future contraction there
similar to that which Wall street has been
going through engages an interesting
amount of attention. The action or inaction
OF to-days market reflects the disposition
of the speculative world to sit down and
await further light on these questions. The
Improvement in the condition of cotton over
the previous month shown by the govern
ment report on cotton aggregated closely
with speculations and failed to weaken the
cotton market The strength in wheat was
calculated also to have a weakening effect
on stocks. The weekly statistics of railway
traffic made remarkable and favorable
showing, and especially in the matter of
the general merchandise movement The
an eager buyer of all kinds of manufactures
and the output of mills and factories is
said to be so large as to tax the equipment
resources of the railroads so that a car
famine is threatened.
The bond market was dull and irregular.
Total sales, par value, $4,000 United
States bonds were all unchanged on the
closing call.
Following are the days share sales and
the recorded price change: