The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-05-25
WEEK IN WALL STREET
PERSISTENT LIQUIDATION HAS BEEN
THE CHIEF FEATURE.
A Few Abortive Rallies of No Effect
in Reassuring Sentiment-some Of
the Dominant Influences.

NEW YORK May 23.-Hopes Of a turn
in speculative sentiment were again dlsap-
pointed by the action of to-day's stock mar
ket, i'm which acute weakness developed
under free outpouring Of stocks In nqulda-
ton from all quarters. The selling move
ment gathered force with the progress Oh
the trading. which was most active at the
close and at about the low point or the
day. A violent break in United States steer
stocks soon after the opening had very
unsettling effect on the whole list Inc
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 It's
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
31a points under enormous offerings, max
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-
vania stock at the subscription price TO
stockholders was depressing factor in the
general market. The implied necessity or
paying commission to a syndicate to Sc
A. H.
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 a decrease in
cash Of 81, $4,000 compared with the expec-
tation of gain Of from one TO two mil
lions. But the loan contraction of S5,4l6,lOO
reduced the reserve requirement sufficiently
to leave a small margin of increase from
the surplus. The market steadied 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
a elimination of the decline and watchful
for signs of 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
supposition that the process Of discounting
the unfavorable factors had gone far
enough to warrant the expectation of
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
proved false starts. and the unmistakable
coverieS turned the market downward
again. The underlying causes of the de-
preston were the same for some time
past, and may be summed up in the terms
undgested 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 q period
of reaction to be faced.
There have been a few speculative, de-
velopmentS during the week, which have
had more immediate effect in causing the
selling of stocks. The wild speculat ton in
cotton has involved some large losses on
stocks is believed to have been forced to
make these losses good. The feverish mar
kets for these staples has led to plans for
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 wit, immediate response in. the stock mar
|
ing the two movements.
The weeks heavy outgo of gold has been
OF immediate influence in depressing stocks.
although the domestic money market has
not been affected. The sustained frmness
of foreign exchange in face of gold ex-
ports shows that they were evidently made
as the cheapest form of remttances in the
immediate payment of maturing foreign
obligations by bankers. Early in the week
also the English discount market showed
a rising tendency as the enormous obliga-
lions to the Bank of England incurred for
applications for the Transvaal loan were
paid of. The reduction Of the bank rate
from Az to 312 per cent. on Thursday re-
Taxed the exchange situation materially 1t
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-
exports, a poor showing of grain exports
and the large imports of various materials.
Considerable further shipments of gold are
thus possible.
All the news bearing on labor disputes 4,
eagerly scanned i'm Wall street, and the
fact is dwelt on that settlements are in
variably affected by raising wages The
unvarying tenor of these reports is assoc
ciated with the news of decreased traffic on
various railroad systems, said to be due to
reduced deliveries by manufacturers. owing
to the uncertainty of the labor outlook.
Prices of bonds have moved irreguIarly
on large volume OF dealings, due princi-
United States Steel sinking fund fiyes
United States new tours declined ~ per
cent, as compared with the closing cali of
last week.
Following. are Saturdays share sales and