The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1886-12-18
THE BUSINESS OUTLOOK.
Transactions in the North Continue Large.
but There Is Some Depression in the South.

New YORK, Dec 17.-R. G.. Dun 6 Co. will
issue the following weekly trade review to-mor-
row. The past has been a week of unusual ex-
element The sharp decline in the stock mar
ket was foreshadowed by the recent unhealthy
advance in securities that do not secure, and In
some of these the fall was from $50 to $75 per
share; fifteen other stocks lost over $40 Der
share, and the average price of active stocks
good and bad fell $8 80 per share from Dec f.
to the lowest point on Wednesday last, "knock-
ing the froth off the market" one broker called
it. In that case there was good deal of froth.
Some recovery has since occurred, but It is yet
too soon to determine whether bottomshas been
reached. It is surprising and creditabls
that thus far only one failure
in the Exchange has resulted from such
fall Money was artifcialy locked up, beyond
doubt and the decline thus increased. The rate
rose from to per cent, on Saturday, to 10 per
cent. as the lowest. and 1856 per cent as the
highest on Wednesday. This difficulty has been
met by shipments from many interior points,
Canadian banks sending $4,000, OO0s by the az
rival of ST, 100000 on Thursday from Francs,
and the shipment of $4,000 900 from London,
and by the Treasurys offer to prepay So 900, 0O0n
interest. The advance in rates by the Bank Of
England is meant to check the outflow of gold,
but the supply now In sight here and the
shrinkage In speculative demands, should pre-
vent any stringency in money for commercial Of
industrial needs, if Europe does not unload
stocks.
So far, the Wall-street excitement has had no
effect general business. Other speculative
markets were neglected and the sales were far
below previous records. Oil and grain dropped
on Wednesday, but recovered; coffee broke At
Havre and has not recovered; cotton yielded
shade sbut hog products advanced
The Thomas company, which largely controls
iron prices. fixes $40 as its price for No. iron
for 1887. and has sold 40 per cent more in 1886
than in any ether year, and engaged Ill, 900 tons
already for next year.
Important failures at several points show in
dividual rather than general overtrading.
Dry goods are less active, but the trade Is not
unhealthy Exchanges outside New York still
show that the volume Of business at the North il
very large, though SONG depression exists in
advance east-bound rates cents on Dec. 20. and
have large earnings already. But while Wall
street acrobatics do not yet affect general bust.
ness, continued depression might, in two ways:
Failure to sell securities might check railroad
building and iron-making;a return of the large
body of American stocks held abroad o Id
cause heavy losses Of gold and severe pressure.
The weather wise will watch fer signs in these
quarters. Thus far Europe sends gold and buys
stocks. The interstate commerce bill is thought
dangerous by many investors, and its progress
may cause unloading of securities.
The issue of silver certificates increases, So.
900 900 more having been put out last week.
while the Treasury took in 81 800. 900 more gold
Risks in stocks by individuals all over the couu-
try are likely to increase the number of CON-
cial failures already unusually large for the sea-
son. The situation, therefore, while not dis.
turbing. justfes caution.
The business failures occurring throughout
the country during the last seven days number.
in the United States, 260 and for Canada, g. q
total of 1885, against 274 last week.. and 242 tae
week previous The casualties in the Middle.
Western, Southern and Pacific States are above
the average in number, which is also the case in
Canada In New York city fifteen failures are
reported, only two of which are of consequences