The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-08-11
FINANCE AND COMMERCE.
FINANCE.

1NDIANAPoLIs. Aug. 10.
This has been a memorable day in banking annals,
and has been bravely met by the surviving banks.
Suspicious circumstances in the course Of the two
broken banks have been noticed for some days, and
the warning was in time to enable the balance to
strengthen up.
During the early morning there was a little fever
ishness. This soon passed away, and altogether busI-
ness was unusually dull and quiet. Now, that the
worst is known, bankers show a disposition to accom-
MEDIATE customers in good standing, and loans were
negotiated at s per cent. Country banks drew largely,
but, as a general thing, this class of balances is SO low
as to occasion no anxiety. Eastern Exchange was
freely bought at from $3.50 to 81. so per thousand dis
count. At first glance very few people realize the
effect this SUSPENSION will have on the business COM
munity. The total loans by indianapolis banks would
not vary much from $1,000, 900. OF this amount the
broken banks probably held nearly one-third; that is
q of borrowed money in every So will have to be paid
before the depositors can realize. This can only be
accomplished at a great cost, and there is certainly a
very poor prospect for business in our city. The les
son has been a hard one, but it will probably be of
use, and we may expect to see an era of banking carried
on in a Legitimate way. Any bank offering more than
avery low rate of interest on bank accounts and GER
tihoates of deposit, and particularly any bank which
may offer interest on open accounts will draw the
storm on itself. Loans should be restricted to bust
ness paper which is expected to be paid at maturity.
The plan of carrying lines for customers and so tax
ing a special partnership in their bushes, has borne
its legitimate fruit, and is justly regarded as one of
the most pernicious of practices.
The New York Money Market-stock Trans
acknowledging Prices of Government Sc
neutrality-suspicious. of General Stocks
NEW YORK, Aug. lO.-Governments lower for four
and-a-halfs.
Railways weaker.
State securities quiet.
The stock market was weak and feverish the entire
forenoon, and although there was at no time any
thing like a break, there was a sagging of prices gen
orally, though dividend payers were comparatively
firm, only declining a fraction. The market was less
active after 1890, though still a considerable nuctua-
ton of prices, the net result of which up to 2 o'clock
was to leave the market generally a fraction higher
than at 1890. In the last hour the market was weak,
and the lowest prices of the day made, the decline
ranging from u to IA per cent, the latter Northwest
ern and Lackawanna, other stocks showing a decline
as large as l per cent. being Jersey Central. Cana
da Southern, Denver, Western Union and Northern
Pacific common. Memphis & Charleston declined 2&
per cent, Alton h Terre Haute 2, Ohio Il Mississippi
"a. The net result of the day was a decline of Z to 3
per cent, the latter Central Pacific and Ohio a Mis-
sissippi, 2s on Canada Southern, 2e on Lackawanna,
and ION Erie. The transactions in Laekawanna were
very large, aggregating over leo, 600 shares, of which
tnIly ~ 900 were sold in the last hour.
The Evening Post says: Large operators and
capitalists who have important interests at stake
made a stand to-day in the stock market, and pre-
were all sellers, and there was undoubtedly a good
deal of long stock thrown upon the market by holders
who had become uneasy on account of the increase of
failures and rumors of Others"
The transactions at the Stock Exchange to-day
aggregated 3,001 shares, as follows: Canada South
ern, 5000; Central Pacific, Il, 900; Delaware, Lacka-
wanna Western, l4,00g; Denver, 22,0O; Erie, Il 900;
4 Nashville. 1900; Missouri Pacific, 1000; North
western, s,Q0l; New, Jersey Central, l5.1OO. New York
Central, 5000; Northern Paeitc, IA, 100; Northern Pa
cine preferred, l4,e0o; Reading, 1900; Texas Pacific,
300; Union Pacific, 1900; Wabash Pacific, 1000;
Western Union, "A, 900; Oregon & TranscontinentaL
1000; Wabash preferred, 10000; Canadian Pacific,