The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-02-14
STOCKS HAVE QUIET DAY
ROOM TRADERS TOOK PROFITS AND
CAUSED LOSS OF EARLY GAIN.
Market Had to Face Great Calamity
This Week. and Has shown Good
Strength i'm Holding Up.

NEW YORK. Feb. 1.-Two hours session Of
the Stock Exchange to-day did not attract more
than small attendance of brokers and mem
bers and the trading was listless and unimpor-
tant
The opening level was higher TO conform to the
parity of London prices. which had been lifted
slightly during the holiday here The small room
traders attempted to take the days profits after
the bank statement, with the result of carrying
prices back to about the level of Thursdays
prices.
Although the preliminary estimates Of the cur
rency movement. through regular channels. indi-
Gated gain in cash of about 100000. the de-
crease of Sl6S 800. shown by the bank statement.
did not cause great surprise as there was knowl-
edge of considerable shipments TO Baltimore,
which did not figure in the estimates.
The nominal increase in the loans was less
than was expected. and would be considered
negatively favorable factor The weeks
nouncements Of the placing OF s5O,O00.OOO of
eighteen months Pennsylvania Company notes,
s6,OO0.02O Missouri Pacific notes and the news
from Havana of the subscription by New York
bankers to the 49, 900. 600 Cuban loan were proof
of the large actual demands upon credits which
are in of satisfaction.
There seemed to be some special pressure d.
rected against New York Central after sharp
opening advance. Cficial deniaIs that an issue
did not avail altogether to quiet apprehensions
that subject.
REVIEW OF THE WEEK.
The stock market had to face at the opening
of this week the unexpected calamity of the
great conhagrstion at Baltimore and the out
break of war between Russia and Japan. which
latter event was not unexpected by the best
informed opinion. That it was not wholly dis
counted, however, was obvious from the motion
caused in foreign security markets. especially
among State funds, notably at Paris.
This concurrence of harmful events stag
gering blow to sentiment and grave fears were
felt of the consequences. These fears have thus
far failed in striking degree of realization.
The sharp declines of Monday Were almost made
the selling even on that day was for the short
account, which was hastily covered on Tuesday
under the convincing evidence that there was
no urgent pressure of liquidation which promised
opportunity of buying in stocks at a lower level.
SUPPORT BY LARGE INTERESTS.
1t is highly probable that some measure of
powerful support by large capitalists and bank
ers played a part in Tuesdays rally. 1t was
the perception OF this fact and the fear that
the object of this support to afford more
profitable basis for necessary liquidation that in
duced the renewed decline OF the latter market.
But acute apprehension was quoted, and conf
dence felt that the market would not be
subjected to the Kind OF forced liquidation which
was at first feared as a consequence of the enor-
nous losses suffered at Baltimore
The scaling down of the first estimates of those
losses had important part in restoring the
which these conditions were met was a striking
demonstration of the great growth of the coun-
try's resources since the time when similar ca
lamities threw financial circles into demoraliza-
ton and precipitated the stock market into
The gravity of the requirements to be met
/ by THE heavy destruction of property values
newed but orderly fall in prices which
has followed the recovery from the first spas
modic drop.
RESULTS OF POSSIBLE LIQUIDATION.
md idatfO ha 81
as result of the heavy requirements by the
/ insurance companies, it is realized mat wide
/ spread extension of credits will be necessary to
/ accomplish this result If insurance companies
to be saved from the necessity of selling
their investment holdings at a sacrifice, they
must resort to the money market to borrow
/ on this collateral. and it is expected that they
will call in loans they have placed with other
] borrowers.
The continuation of credits to the stricken
! consideration also. These unforeseen needs re.
inforce the doubts which have been caused fol-
some time past regarding the money outlook
on account OF the heavy corporation require
ments which are constantly appearing, and the
effect also Of the payment for the Panama canal
| which is engaging more immediate consideration
The hardening OF money rates abroad and th'
! probability Of war loans to come added &c tn,
force CT this consideration. Feeling the sub
ject was well illustrated by the special weakness.
even vague runDrs of note issues.
These announcements or rumors were quite nu
| among railroads to issue securities to borrow
! large sums on temporary notes, to be converted
into funded form ultimately, the market fo
securities may offer more favorable opportunity
This tendency to increase obligations ahead o.
present stock issues meets increased disfavo
by reason Of the unfavorable showing of curren
railroad earnings The returns of weekly gross
responding periods last year.
This is explained. in some part by the snow
| panied by reports Of congestion Of freight anC
blockades which the utmost efforts are insult
OBJECTS OF RAILROAD BORROWING.
This condition seems to justify the plans 70
continued expenditure for improvements an,
increase of facilities. which are the objects o
the large railroad borrowings.
The decline in net earnings caused by the gen
eral rise in cost of operations of railroads i
another ground for doubt regarding the polio,
of mourning obligations. The pursuit o
this policy, however and the demand thus in
sured for material has had it's effect on tn
stocks of various railroad equipment corpora
tons and also on United States Steel.
The show of strength in those shares has beel
partly on the belief that terms had been agrees
upon for the placing of steel rail orders to NEE
the views OF the railroad corporations whic
have hitherto RETAINED from making purchases
Stress has been laid also upon the large con
sumptive requirements for steel products whic
will result from the rebuilding operations a
Baltimore.
1t has developed also that the fire losses to b
met by foreign insurance companies havin
market, promising timely addition to the sup
| ply of exchange in connection with the provision
to be made for meeting the Panama canal pay
| ment.
Business in bonds has been less. the placin
| of the railroad notes and of various bon
issues serving to divert the investment de
mand from existing issues. United States neN
tours have declined one-quarter of per cent
on call during the week
Saturdays sales and the range;
High Low Clos
| RAILROADS Sales. est est. Bic
| Atchison ..-............... 5000 67S 67% g.;
| Atchson pref ...........-.- so Sy12 s9l2 ST.
| Baltimore q Ohio.......... 800 us TA az
/ b. * o. pref................ IS
| Canadian Pacific .....-.... I4OO 1l64 1852 116
! Central of New Jersey. 155
Chesapeake & Ohio........ 400 52s 32 81
| IL