The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-05-24
WEEK IN WALL STREET
PERSISTENT LIQUIDATION HAS BEEN
THE CHIEF FEATURE.
A Few Abortive Rallies of No Eject
I'm Reassurfng Sentiment-Some Of
the Dominant Influences.

the Dominant Influences.
NEW YORK. May 23.-Hopes of turn
in speculative sentiment were again disap-
pointed by the action of to-day's stock mar
ket in which acute weakness developed
under free outpouring of stocks in hquida-
ton from all quarters. The selling move
ment gathered force with the progress OF
the trading, which was most active at the
close and at about the low point OF the
day. A violent break in United States Steel
stocks soon after the opening had very
unsettling effect on the whole list The
only explanation of this special weakness
was a rumor that the Chicago plants OF
the company had shut down. The trade
was somewhat disconnected also by the
large increased engagements of gold Tor
export to Argentina on Monday, bringing
the total shipments for the day up TO w.
100000. In the early selling there was evil
dence of support for PENNSYLVANIA, and its
comparative steadiness served as partial
offset to the weakness elsewhere. But that
stock was amongst the leaders Of the de-
cline at the last losing two full points. The
most conspicuous liquidation. however, was
that in st. Paul, which was forced down
91s points under enormous offerings, maxi
ing a new low record for the movement by
a margin of nearly two points. The final
break took the average level of the market
to the low record of the year. effectually
wiping out the recovery of yesterday and
the day before. The unfavorable criticism
of the underwriting of the new Pennsyl-
Ill ,hccr ira{;n m
stockholders was depressing factor in the
general market The implied necessity OF
paying a commission to syndicate to Sc
cure the subscriptions to the stock was re-
garded as a discouraging indication of the
condition Of the market for securities. The
special weakness of st. Paul was attributed
In part to the reports of a threatened strike
among the freight handlers at Chicago. The
bank statement disclosed decrease in
cash of 1926, co., compared with the expec-
tation of a gain Of from one to two mil
lions. But the loan contraction of s., 100
reduced the reserve requirement sufficiently
to leave a small margin of Increase from
the surplus. The market steadied a moment
on the appearance Of the statement, but
prices plunged downwards again in the late
dealings Union Pacific, Southern Pacific,
Atchison, Reading and Amalgamated were
the severest sufferers.
Considerable liquidation has been effected
in the stock market this week, and prices
have suffered in the process. On several
days the downward tendency became pre-
cipitate and the selling apparently urgent.
At intervals the market showed tendency
to rally, and operators seemed expectant of
elimination of the decline and watchful
| for signs of a recovery. The extent to
which the decline has reached without effec-
| tive check, and the absence of new unfa-
vorable developments in the situation for
some time past, have given ground for the
| suppostion that the process of dscounting
| the unfavorable factors had gone far
| enough to warrant the expectation of a
| rally. Professional operators changed their
| position from the short to the long side OF
| the market once or twice during the week
in pursuance Of this expectation. But these
| evidence of renewed liquidation on the re.
| coveries turned the market downward
| again. The underlying causes Of the de-
preston were the same as for some time
| past, and may be summed up in the terms
| undigested securities. fears of money strin.
gency during the fall widespread unrest OF
labor, declining iron markets and a general
| fear that the prosperous era for the coun.
try has reached a elimination with a period
| of reaction to be faced.
| There have been few speculative de.
velopments during the week, which have
had more immediate effect in causing the
| selling of stocks. The wild speculation in
| cotton has involved some large losses or
| stocks is believed to have been forced tc
make these losses good. The feverish mar.
kets for these staples has led to plans fol
curtailment of production and talk of shut
ting down cotton mills, and it is evident
| that large reduction In export demand is
resulting from the high price Of cotton
with corresponding reduction In the sup
ply of foreign exchange. The occasional
reductions in prices Of cotton have met
| with immediate response In the stock mar
ket in a firmer tone for stocks, showing
! clearly the speculative sentiment connect.
ing tie two movements.
The weeks heavy outgo of gold has beer
| OF immediate influence in depressing stocks
! although the domestic money market has
not been affected. The sustained firmness
| of foreign exchange in face of gold ex.
ports shows that they were evidently made
as the. cheapest form of remittances in the
| obligations by bankers. Early in the week
also the English discount market showed
a rising tendency as the enormous obliga.
| applications for the Transvaal loan were
| paid Of The reduction of the bank rate
| from AZ to 3ia per cent. on Thursday re-
Taxed the exchange situation materially. II
| is known, however, that large loans Sc
| cured from Berlin bankers two and three
| months ago will mature during the next
| Few weeks The current balance of mer.
| chandise exports in our favor is below ex
| pectations at the time these Berlin obliga
! tons were contracted. to the small cottor
| exports. a poor showing of grain exports
| and the large imports of various materials
4 Considerable further shipments of gold are
| thus possible.
| All the news bearing on labor disputes /.
eagerly scanned In Wall street, and the
| fact is dwelt on that settlements are in
| variably affected by raising wages. The
| unvarying tenor of these reports is asso
| ciated with the news of decreased traffic or
various railroad systems, said to be due te
| reduced deliveries by manufacturers, OWNS
| to the uncertainty of the labor outlook.
Prices of bonds have moved irregularly
| on a large volume of dealings, due princi
| pally to the heavy transactions in the new
| United States Steel sinking fund fives
| United States new tours declined Il pel
| cent. as compared with the closing call OF
/ last week.
Following are Saturdays share sales ant
| the recorded price changes:
| High Low Clos