The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-07-20
WEEK in WALL STREET
FIRST THREE DAYS MARKED BY A
PRECIPIIATE DECLINE.
Most OF the Losses Recovered ON
Thursday and Friday-Monetary
Conditions Are Better.


stock market was Gull and professional.
The tone OF the narrow speculation showed
sentiment very doubtful and hesitating.
Stocks were sold early in the day on the
assumption that yesterdays upward move
ment had discounted a favorable bank
statement, so that no further rise could be
expected after its publication. There was
momentary rally when the statement ap-
peared, but the selling was renewed and
prices receded to q level substantially be-
low last night, closing dull and heavy.
without any rally.
Heavy liquidation in the stock market tt6s
been in progress during the week, without
any developments in the general business
and industrial situation 20 adequately &C
count for it, The weakness which developed
last week in New York Central on the as
sumption that its needs for funds must be
met by some new capital issues. with the
danger of repetition of the experience met
in the fotation of the new Pennsylvania is
sue of stock, spread generally throughout
the list as it became known that various
railroad corporations had similar needs for
funds, which they were supplying by tenn
porary loans at high rates OF interest,
rather than attempt to sell securities at a
sacrifice in the present unfavorable market
This was not strictly new situation, as
it has been known for some time that the
roads sharing in the new control OF the
Hooking Valley had given their notes on
per cent. basis. The extension of ma
turing service bond of the Burlington for
two years on per cent. basis was also
a symptom of the Discrimination OF rail-
road corporations TO float large new is
sues at this time. The violent decline in
Pennsylvania shares in connection with the
new issue of stock was conclusive demon
stration of the unfit condition of the mar
ket to absorb new issues OF even high
grade, and the congestion Of new indus
trial issues in the market had been notori-
Gus for months Nevertheless, acute I'M
easiness over the money situation, present
and prospective. was caused by the an
nouncement that the Burlington had bor-
rowed 100000 until next March, and the
Union Pacific 100000 for a year and
half on a 6 per cent basis. Many, rumors
thereupon became current Of large pros
pective borrowings by various rilroads and
of the consequent heavy inroads to be made
on money supplies
The market took on tone Of demoraliza-
ton on Wednesday and grave fears began
to be felt OF the consequences OF the unin-
terrupted shrinkage of values. On that day
the influential bankers In the clearing house
association took counsel among themselves
and allowed it to become known that care
full investigation of the banking situation
had assured them of the soundness OF the
banking situation and the safety of the
position of all city banks and trust COM
panies so far as they could ascertain. The
bankers were averse to making formal an
nouncement of the result of such an in
vestigation on the grounds that unfavorable
differences might be drawn from necessity
to take such steps. But the ground for con-
fidence resulting from the canvass was
commonly known In the financial district
and had a notable effect in reassuring SEN
timent. Another fact that had strong eff
feet in restoring confidence was the sharp
response of the foreign exchange market TO
the rise In the domestic money market. The
strength which had been maintained in the
exchange market and the sustained out
ward movement of gold, in view of the dis
parity in interest rates here and abroad.
were indications of distrust on the part of
foreign capital, which gave small hope OF
relief for domestic money needs from that
source. But on Thursday there was pre-
cipitate break in foreign exchange which
transformed the situation from one of APP
prehension of further gold exports to
prospect that gold could be brought in on
occasion of need. Foreign banking houses
offered large sums of money in the New
York market. 1t was learned that large
burlington notes had been taken by for
eign capitalists. The buying of stocks in
the New York market for foreign account
was also said to be on a liberal scale, al
though this movement was more obscure,
as the decline in prices here had been so
much more rapid than In London as to
afford profit in large transactions, sales IN
London being covered here at the decline
The rally in the stock market which res 1T
ed in the latter part of the week wiped cut
a large portion of the earlier losses ard
some of the active stocks were lifted above
last Saturdays level.
some of the most sensational movements
| of the week were in high grade invest
ment stocks which are seldom traded in.
Some of these broke scores of points on a
| few or bn single transactions. Such opera
| tions may be accounted as showing some
urgent necessity for funds. But the limited
| amount of the sales and the quick recov-
| cry in such stocks on the purchase of
| equally small amounts precludes the idea
! of any general liquidation going on in these
| properties or any unfavorable developments
| regarding the properties themselves. The
| marking down of market prices Of the high
grade investment STOCKS ana OF mortgage
| tendency of 6 per cent. interest rates for
| an Indefinite period, there is little induce
| ment to hold securities on 3l2 or per
| cent basis. That there has been liquidation
| of securities by financial institutions with
| q view to employing funds in the open
| money market is commonly assumed in
| Wall street The needs of individual capital
| lists to meet obligations on undertakings
| and to protect property interests in need of
working capital are obvious in some con-
| spicuous cases. are commonly inferred in
others and are rumored with all degrees
| of reliability and unreliability in others.
| Wall street processes some anxiety over
the outcome of the corn crop on account
| of its lateness, and the settlement of the
| basis for the coming years business in
| iron and steel is eagerly studied. But there
Is little of the weeks sentiment in the
| stock market to be traced to influences
| from outside business world. Reports of
| railroad earnings and of current railroad
| traffic are considered favorable. The pres
sure for loans and the rise In interest rates
with the resulting liquidation Of market
able securities are accepted as evidence of
| the undue expansion of credits of enter
| prises some of them unsound. some of
| them over-capitalized. some of them in too
| randi anticipation of future growth, and
| some of them for necessary improvements
| and betterments to accommodate present
| business but the capital needs for which
| had not been sufficiently allowed for
| The bond market was also weak with
! some recovery in sympathy with stocks.
| United States bonds were all unchanged as
| Compared with the closing call of last week.
/ Following are Saturdays share sales and
/ the recorded price changes:
| High Low Clos.
| STOCKS Sales est est. Bid.
| atrhison ................ 1870 655s 64z e5
4 pref