The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-04-19
WEEK IN WALL STREET
A SLOW REACTION AFTER THE vIO-
LENT DECLINE OF MONDAY.
Varying Opinions Of the Northern Sc
marketable Stocks-Money Easy.

NEW YORK, April 1S.-To-day's stock
market was but a dull and narrow affair,
and the changes are generally insignificant
"A violent rebound at the opening in Metro
polital Street-railway helped the tone for
a while, the unsettling effect of such
weakness as was shown by the stock yes
terday is dreaded. The spasmodic rise in
this stock proved to be due 10 bear orders
to cover at the market, and the high price
was maintained for only an instant. The
renewed weakness of the stock and the
| sharp selling movement in Reading unset
| tied prices and turned the trend down.
ward. Reading dropped about 2 points be-
| fore support was forthcoming. The selling
| of the stock was based on the supposition
| that the anthracite coal combination will
| be the next object Of legal process under
the antitrust law by the government.
Other members Of the anthracite group
were not notably affected. The professional
traders who made up the market began TO
cover short contracts before the bank
| statement appeared, but the selling was
renewed on the publication of the state
ment The disappointing thing was that
of the average loans which showed an in
| crease of s., 500. whereas the severe
| liquidation of the week had given rise to
| hopes of large loan reduction. The show
ing is complicated by the merger Of two
banks and an increase in capital of another.
which made requirements for loans without
a corresponding effect on deposits. The cash
| increase is about as expected, and the sur
plus reserve was correspondingly benefited.
The market rallied and closed steady, but
| very dull. The decision expected on Mon
| day on the application for stay pending
the appeal of the Northern Securities case
/ is somewhat dreaded and caused pause in
operations for the advance. Foreign ex-
change was firm under a continued demand
for remittance, but money was reported
easier in London. The weekly statement
of the Imperial Bank Of Great Britain and
the large oversubscriptions reported for the
new German loan were regarded as graft
| flying evidences of the abundance of funds
| at that center
| This weeks stock market had turbulent
and demoralizing beginning and developed
a strong recovery by midweek. 1t became
| quickly manifest on Monday that the last
half Of Thursdays session, since which
| time the Stock Exchange had been closed.
had failed to show the full effect Of the
Northern Securities decision. The market
was subjected to violent liquidation all day
Monday, influenced by drop Of more than
| 9 points in the price of Northern Securities
| on the curb. Great alarm was experienced
| on Monday as to the far-reaching conse-
quences of this decision on existing ar
| rangementS and relations In the railroad
| world, besides the immediate consequences
| to flow from the dissolution of the North
ern Securities Corporation itself. 1t was
| feared that dividends would have to be sus-
pended on Northern Securities in any
ers of money, where Northern Securities
| stock figured as collateral, was dreaded.
| Another ground for alarm was the question
| of what balance Of control Of the cOnstit-
uent companies might result from an ex-
| change of old stock for the present North
| ern Securities stock. in view Of the consid-
curities stock supposed to have been eff
| fected. But beyond this special applica-
| ton of the decision lay broad field for
| conjecture as to its possible bearing on the
| stocks by competing railroad companies.
| The Union Pacific holdings Of Southern Pa
subsidiary Vanderbilt roads, the Pennsyl,
vania holdings of Norfolk & Western and
the band Of holdings jointly with the Lake
| Shore Of Reading, as well as centralized
control in the anthracite industry. and the
supposed Rock Island control Of the st.
Louis & San Francisco. We're the conspicu-
| Gus concrete examples OF arrangements
which it was feared would directly be inter-
! fered with. Many other projects of combi-
| nation and contradictions have been under
in the Northern Securities case to be
pushed to a contamination. The first i'm
preston Of the decision, therefore, was of
a very large extent Of exchange financial
| arrangement.
The notable recovery in the stock market
| during the latter part of the week is un-
| doubtedly due to the perception that the
| long previous decline in prices has been
| due in part to an apprehension that the
| Northern Securities organization would not
stand the test Of judicial proceedings.
There has been perceptible growing inn
preston in the financial world that the
community of interest policy has been
responsible in part for the multiplication
| Of new securities, and has helped toward
the conditions of congestion in the secur-
ing unfavorable factor in the present stu
| alton. The condition of the money market
which has resulted has operated in itself as
an automatic check on new financial prof.
ects, and some sense of relief is felt over
| the promise that future corporation and
syndicate demands upon the money market
| would be curtailed. The policy of purchase
of control of railroad properties at extraor-
binary prices, with issue Of new securities
on the collateral security of the purchased
| stocks is felt to have a limit of safety and
wisdom, which there was danger of over
stepping in the course which the process
| was taking before the check was applied.
| Furthermore, the growing difficulty Of
marketing new securities has taken the
| edge off the formerly prevailing appetite
| for buying up control Of railroad systems.
| Security for railroads "left out over night"
in the picturesque phrase of a prominent
| capitalist during the Burlington purchase
| era, is no longer a matter of such solicit
| tude, and even minority holdings of COM
| pact nature are felt to be secure of control
| in existing conditions. These are some of
| the revised views of the Northern Securities
decision which have come to the public
| opinion of Wall street in its Quieter mood.
The eliminating slump on Monday follow
| ing the preceding long decline was felt to
prepare the market technically for a recov-
| cry, so that professional operators have
| largely covered their short contracts, and
in some cases have gone long on the mar
| ket.
The growing ease of money to supply
facilities for speculation and the extern
sive liquidation of stocks has added to the
| relief of the money market The first gov
| eminent report on the winter wheat crop
| made such an encouraging showing OF con-
! dition and acreage as to warrant a pre-
| sumption of large yield and railroad earn
| ings reported during the week have shown
remarkable increase over last year. The
| March foreign trade report shows a notable
| expansion of exports, and the out-go of
| grain continued to furnish good supply
| of exchange. With the growing ease Of
money here there is a good demand, how
| ever, for exchange which is obviously due
| to a resumption OF the payment of foreign
obligations, which is an assurance against
future pressure from foreign source upon
/ the New York money supply The upward
| course of prices has been pursued with
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