The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-08-24
SLUGGISH STOCK MARKET
DUE PARTLY TO DIvERTING INFLU-
ENCE OF YACHT RACES.
Interesting Review of the Weeks
Fluctuations and the Causes That
Brought Them About.

NEW YORK, Aug. 22.-The stock market
was practically idle to-day, large part of
the membership being absent at the yacht
races or for end-of-the-week holidays out
of town. holiday on the London Stock
Exchange subtracted also from normal
business. The sluggish movements of prices
under these circumstances were of little
significance. United States Realty pre-
ferred suffered from the rumors prevalent
that the next dividend would be passed.
Minneapolis & st. Paul and Sault Ste. Ma
RE rose momentarily the declaration of
the first dividend on the stock. then yielded
on the profit taking. Favorable weekly
views of trade by the mercantile agencies
were reassuring factor and the crop news
had nothing threatening in il. Attention
was attracted to the large import or reim-
port movement of cotton thus far in August
for delivery on contracts, owing to the ex-
istence Of corner. This is an adverse fac
tor in the exchange market. The Financial
Chronicle points out that the municipal
bond market has suffered in common with
other securities from the dearth of demand
and estimates that no less than 155 offerings
of municipal bonds throughout the country
months There was slight splitting out of
stocks on the publication of the bank state
ment. The large loan decrease was a dis
appointment, but the room shorts in the
narrow market covered before the closing,
which was steady and almost stagnant.
Bankers are inclined to attribute the loan
expansion to corporate borrowings, but to
larger extent to regular commercial de-
mands.
The upward reaction in stocks which de-
veloped in the early part of the month
reached its limit this week, and there has
been a sharp downward reaction. The sue
cessive fluctuations seem to be the normal
sequel to the prolonged decline rather than
a response to any new factors in the situa-
ton. With the cessation of the forced
| selling of collateral out of loans a violent
rebound was to be expected when the long
| standing bear account began to cover
With the satisfaction of the demand from
uncovered shorts 1T was natural that there
should be augmented selling pressure by
those seeking to take profits who had been
buyers at the low level. The market of the
| early part of the week showed plainly
enough that many of these buyers at the
low level were capitalists of large re-
sources and with skilled market managers
| on the floor Of the Stock Exchange to
| guard their interests. The upward rebound
| in prices was thus prolonged to some ex-
| tent. Before the middle of the week the
the uprush Of prices SO feverish as to arouse
distrust. Subsequent events proved that
there had been very heavy profit-taking
market sed the tactics SR OF w tne
| afterwards withdrawn. The reaction was
correspondingly violent and sudden. But
rumors of business disasters that had be-
| come so prevalent at the lower levels of
the market. The reaction was an admoni-
ton not to be mistaken that the
| for by the long liquidation were real
| exigencies and that the resources
provided to meet them were not to be safely
| dissipated at once in wild speculation. The
| course to be expected of the market in the
| absence of important new influences would
| be a lessening series of fluctuations fol-
lowed by period of duIIness and slug
gishness. The tightness of the money mar
| ket and the expectation of the early devel.
| opment of the Seasonable interior demand
for currency to move the crops are factors
likely TO tend to this result. The course OF
interior exchanges during the week has
pointed Enthusiastically to the conclusion that
and that the balance will shortly turn in
favor of the interior A timely event in
view of this development, was the arrival
at San Francisco of nearly two millions OF
Australian gold, which was made immedi
ately available to New York bank reserve.
by Geographic transfer through the medium
of the Treasury Department. 1t hap
pened that in the final upward squirt o.
prices of stocks much was made by thu
bull leaders of the report that the Colon
bian Senate had finally rejected the cana
treaty and that an agreement had beer
reached for the passage through the coming
session of Congress of comprehensive cur
rency reform measure. The subsequent
news that the Panama canal treaty wa
still available for adoption by the Colombian
Legislature and the report that disagree
ments would limit the possible action by TIL
| next session of Congress the currenc,
therefore disappointed the spectators wh'
had bought stocks on these accounts an,
Panama canal news was not due to an,
views held on the larger political and com
mercial bearings of the project. but to it
and exchange market. 1t was argued tina
the defeat of the treaty would relieve
drain on the foreign exchange market T.
provide remittances in payment of the $40,
100000 due the Panama Canal Company an
the S10,000,OO0 due the Colombian govern
ment under the terms of the treaty an
would leave the Treasury Department wit
resources to relieve the money situation
The effect of the financing of these pay
ments has been an obscure problem il
! Wall street. but the opinion has been here
tofore held that they would furnish a de
srable means for releasing surplus hold
ings from the treasury, which Is a recur
ring difhculty i'm the present state of tn
market, although the payments were t
be made TO foreign creditors. The foreig
exchange rate has moved decisively ava
from the gold import point during tn
week, partly on account of protective meas
ures adopted by foreign money market
and partly owing to selling of stocks her
for foreign account The export movement
of grain and cotton has not been sufflcien
to offset these influences. There has bee
selling of grains and cotton and the new
of the crops has been regarded as satisfac
0 | tory with the reservation Of the hazard sti
due to the lateness Of the corn crop an
, some continuance of unseasonably lo'
temperatures in the corn belt.
: There has been some brighter feeling
o in the price of Southern pig iron as report
| are had of some increase i'm demand at la:
K appearing on account OF the lower range
has also been event of influence on tt
a stock market Railroad earnings have mad
a satisfactory showing and rumors OF div
dend increases were used in the advancin
[ period of prices early in the week, but di
| appeared later. Railroad officials continl
to express confident views of the outloo
for traffic and to report preparations NAL
ing to accommodate an unprecedented yo
ume.
: Prices of bonds rose but slightly in con
pany with the recovery in stocks and ha,
been correspondingly little affected by Il
reaction in stocks. United States bonds a.
o. unchanged.
p Following Saturdays share sales ar
; the recorded price changes: