Omaha daily bee., 1888-09-16
WEEKLY BUSINESS REVIEW.
An Increased Demand for Money
From the West.
PLENTY OF FUNDS TO MEET IT.
The Jobbing Trade in n Healthy Con.
OTTOMAN Active Week in Wall
Strect-Fair Speculation in
Grain and Provisions.
The Money Market.

Sllt Ntc, Stpl, Ia. DItNlul ltltSTdlu Y
Tue BEE. The chief feature at the banks
during the week was the increased demand
for money from grain dealers at other points
that look to Chicago for funds, and the terri
tory covered by such borrowers includes the
entire winter and spring wheat belt. The
demand for such purposes is also expected to
materially increase, especially from the
northwest, where spring wheat is just now
starting to market. Calls for funds from
other branches of trade and industries are
also equal to recent averages. But there is
an ample supply of funds available for such
purposes, and desirable customers are readily
accommodated. Call and thirty.days loans
on gilt.edged signatures and collaterals are
made to Chicago borrowers at 50jl3 per cent
where large sums are wanted. Business sig.
natures in good standing generally pay 6@7
and small borrowers S per cent. Advances on
grain at other points are usually at 6W7
per cent. The lateness at which the spring
wheat movement has commenced, and the
fact that the export demand continues small
~justiiies the conclusion that the bulk of the
crop will lie held in western elevators all
winter. 1t also seems certain that the
amount of money absorbed by corn dealers
in the interior, where corn is likely to be
cribbed in unusually large quantities, will
be heavy. More than an average call for
loans is also expected from cattle feeders,
but the supply promises to equal require
mentS, and while money is likely to ind IN.
creased employment the next few months,
there is no probability of a scarcity that will
Justify high rates. Gold has been withdrawn
from the Bank of England so freely that the
discount rate advanced | per cent to 4 per
cent. In the open market in London rates
are 3}s@3&4 per cent. New York exchange
has been freely offered by bankers at other
points, and rates have been steady at GOA IOc
discount per $1,000 between banks. Foreign
exchange was steady at "a $40 i.S34 for
shippers sixty-day's documentary bills on
London.
The jobbing trade in dry goods has been
active through the entire week, and leading
houses have had all the business they could
handle. Clothing and all seasonable
merchandise also met with a good demand,
and collections have shown considerable i'm
provement from all directions. TIL general
BUSINESS outlook is also regarded as healthy,
although nothing like a rushing fall trade is
predicted.
The week in Wall street was an active one.
The opening showed a decidedly strong UNI
dertone and gave indications of a further up
turn in prices. 1t was short lived, however,
as the grangcrs, led by St. Paul, cut loose
from the rest of the list and weakened per-
ceptlbly. Strong efforts were made by bull
leaders to check the decline by advancing
coalers and eastern trunk lines, but without
! effect. Liquidation set in and rumors
about the prospective passing of the st.
! Pau, aa..I7!!aaeeiiiiaa produced a lack OF confidence,
and on Thursday, when the announcement
was made that it had passed its dividend on
common and reduced its preferred dividend
to ~ per cent semi annually, selling became
heavy and the market developed into one of
the widest kind, and a decentralization of the
entire list resulted. st. Paul declined "a
and for the week 50, the rest of the market
going off = to 4 points. Long stocks were
thrown over promiscuously. London took a
hand in the selling and disposed of over
10000 shares of st. Paul IN one day and out
of a total of 4S4, 7l9 shares traded in Thurs
day st. Paul furnished 1856. The short
interest in Changers and Vanderbilts was
increased, the latter being sold on the re-
duction in eastbound grain rates. Sharp
covering on extreme declines caused sharp
rallies, but the market has received
too severe q shock to recover itself IN a day
or two. Efforts are being made to restore
rates in nearly all directions. Also to con-
solidate the Western and Northwestern
traffic associations and bring the different
factions into closer relations, but it requires
considerable time to bring all roads into
o compact to restore rates to a paying basis.
The earnings of the leading roads show fair
gains, but they will have to keep on ~increas-
ing their business at present rates to enable
them to pay their heavy fixed charges and
regular dividends. The aggregate sales on
the New York stock exchange for the week
were 2,072, 245 shares.
Speculation in grain the past week, al
though not so active as the preceding one,
reached a fair aggregate volume, and the
range of prices was not so wide as during the
preceding week. A nervous feeling pre-
vailed, and prices on most OF the leading
speculative articles of grain and provisions,
especially wheat futures averaged lower.
Most of the large bulls have unloaded their
wheat. The country, who have bought lib
orally of late, have also taken their profits
with a surprising degree of freedom and are
in a position to get IN again. Arrivals have
been fair at all the leading receiving points,
but farmers as a rule are not rushing their
wheat to market with the same degree of
freedom as in former years, partly because
the harvest is later and also owing to the be-
lief that better prices will be secured later on.
Reports from the northwestern crop are still
of a conflicting nature, but the bulk of ad-
vices from northern Dakota confirm the
early reports of damage by frost. Low tenn
perature in many parts of the corn belt has
caused some uneasiness regarding the safety
of the crop, but the bulk is regarded as about
out of danger of heavy frosts. The shipping
demand continues large, and although re-
ceipts were large stocks do not have any
chance to accumulate. Provisions were
moderately active and prices fiuctuated
sharply, within a liberal range. The spread
of yellow fever in the south made specu-
lators rather backward about taking hold,
and the market remained quiet during the
greater part of the week.