The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-03-31
FINANCE AND COMMERCE.
FINANCE.

INDIAEAPoIIs, March 80.
With the local banks general dizziness was the
Characteristic of to-day's business. The de-
mand for money was light and came largely
from manufacturing interests. Some country
banks were also borrowers. Rates are firmly
maintained at per cent, and advances are re-
garded as a favor.
The gain to a national bank from the Issue OF
circulation is so generally overestimated that we
have compiled the following figures from q cir
eular issued by Fisk & Hatch, Of New York: The
bank is supposed to start with q capital OF
100000, invested in per cents, which, at pres
ent prices, would cost Sl04,50o. Against these
bonds the bank can issue 100000 of notes, on
which it must pay the government an annual
tax OF per cent, in addition to its proportion
of all expenses incident to the printing and re-
demption of national bank notes, say 9l0o of 1
per cent.
Interest on 100000 per cent, bonds. 5000
$4,000 circulation loaned at per cent. $500
$1,000
Tess per cent, tax circulation 5000
Less cost OF maintaining circulation. 81
9e1
---
larion... @ ' 1910 ' Ss,3l9
If, instead of issuing circulation, the bank
had loaned Sl04500 at per cent. il
would have realized. Observation-Disclosures. 1915
On
On their face the above figures show differ
ence of per cent. in favor of circulation, and
this would be true were it not that the premium
paid for the bonds will ultimately be an entire
loss. TO provide for this, certain sum should
he charged of each year. The entire amount of
threes outstanding will probably be taken up be-
fore 1891, Mt Which date the fOursand-a-half
mature. This would give an average life OF
four years, time so short to entirely extin-
guish the apparent profit. Perhaps we should
say here that the various issues sell at prices
which net the investor n uniform rate
Were it not for a certain credit which is sup
posed to be given by national charter, the new
banks which the growth of wealth and popula-
tion calls into existence would be either State
or private. AS it is, large numbers of the ma
tionals are reducing circulation to the minimum
allowed by law. The action of last Congress in
taking off the tax of le per cent ''capital not
invested in government bonds" leaving the tax
on circulation uudsturbed, tends to hasten this
movement.
OF course there are two views as to the de-
STABILITY OF an increase of paper money, but,
under present laws and present prices of bonds,
those who wish 20 see the currency expand with
Ehe growth of the country must look elsewhere
than to the national banks.
The New York Money Market-stock Trans
acknowledging Prices of Government Sc
NEUTRALITY-SUSPICIOUS. of General Stocks.
NEW YORK. March 30.-Money loaned from
TO A per cent, closing at per cent.
Prime mercantile paper, 607l9 per cent.
Dry goods imports for the week, 50, 775,0 900.
Governments-Ext fves Il per cent.
higher; fonrs-and-a-half registered, ls per cent.
higher; other issues unchanged.
Raii n "a
ate volume of business.
State securities irregular
The net result of tOday's trading in the stock
market is a fractional advance the majority
of stocks, though there are probably one-third
- that show fractional decline. AS rue, how
ever, the stocks that are lower those that
are usually inactive while active stocks show
an advance. Most OF the trading in the last hour
was Northern Paclfcs, Oregon & Transconti-
mental, st. Paul. Central Pacific, Lacl1awanna,
Union Pacific and Omaha all of which were
stronger.
The project Of extending the Hannibal 4 ST.
Joseph from Quincy to Chicago was formally
discussed to-day at Gould's office by the parties
interested
The transactions at the Stock Exchange to-
day aggregated 191, 900 shares. tn-wit: 10000
Central Pacific, 10000 Delaware. Lackawanna
d Western, 5000 Michigan Central 80, 900
Northern Pacific 1900 st. Paul. 1900 st.
Panl & Omaha, 1900 Union Faciie, 10000
Oregon e. Trauscontnental
STOCK QUOTATIONS.
EXCHANGE AND GOVERNMENT SECURITIES.