The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1894-10-29

exceeding their respective allotments of
production Under these circumstances
stocks have steadily accumulated and buy
crs have had the advantage over sellers,
the natural result of such "a situation being
a cutting OF price until sales nave Deeh
lar figures. on Thursday a meeting of
the producers and carriers was held Tor
considering the situation. The meeting
showed considerable division of opinion anu
reached some very singular conclusions.
II was determined 10 abolish all nmiIa-
tons upon production. eacn company ne
termining its own output. and 10 ADVANCE
prices Is to 20 cents above the present
official schedule. Two things Wall street
has not yet been able to e~xplain-how, Win
an existing OverSupply, encouragement "
increased production should be gwen, anu
how, with an increased production anu
diminished demand. the circular ParS
should be advanced in the face or sellers
being unable to get existing prices ana DE
ing willing TO accept large reductions.
logic OF these conclusions excites a SoJ Je
deal OF merriment and the setliehhen' "
regarded as only momentary. .oson II
I'm the consideration OF TINS quesuon. ~
is impossible to ignore certain existrns tion
tors of controlling importance: The postum
of consumers undoubtedly lavols ~
price for coal. The reduced earnings OF the
bubble at large necessitate a contraction OF
the use OF fuel for domestic purposes; and;
IL prices are to be maintained, the deihdnu
from that quarter must be expecteu 70 pe
correspondingly reduced. Inc same RUE an
plies 10 Industrial with still
greater force. With the great fall in prices
for all kinds of manufactured products'
there is an unavoidable necessity Tor a re-
duction i'm the cost OF motive power, in
which coal constitutes the principal ele-
ment. The cheapening of power; indeed. is
the foremost engineering problem OF Ine
day, not only In our factories but still more
in every branch OF transportation, whetner
on land or water. Electricity has not only
done much already towards solving that
problem but. through the remarkable dis
coveries of Tesla, promises 10 do far more;
that inventor having, il is conceded, laid a
basis for the early production OF electricity
at one-haif it's present cost. That discovery
not only promises cheaper light, but a more
economical power than steam, and also a
source of heat that may prove cheaper than
coal for either domestic or industrial uses.
These factors place coal, both anthracite
tage 10 which il has never hitherto been
exposed. While, in a certain sense, 1t must
still remain the chief basis of power and
will be the chief agent in producing electric
ity, yet these changes must inevitably
largely infringe upon its consumption. Thus.
influences are at work which can hardly fail
ton in the price of anthracite. 1t is true
that there has already been some reduction
IN It's price, the present official quotations
being about 1l1a per cent. below those of
1892. 1t would. nevertheless, be a rather
bold assumption TO say that THIS decline is
Suflclent 10 satisfy these new conditions.
froDdDly, a material further concession in
price, and some reduction in output will be
found necessary; and that will call for
economies In working the mines and in
carriage and probably some curtailment in
wages. for mining and handling. The coal
companies have thus TO face a rather seri-
Gus situation, which calls for prudence and
conservatism and certainly cannot be helped
by reckless competition in either produc-
ton or prices. Their interests will be best
with a proper estimate Of the difcuities
tney nave TO contend with. 1t would be
wise 10 meet the necessities of industrial
consumers literally; for in that way alone
can IL be hoped to keep up the most i'm
portant part of the demand to the normal
standard. Manufacturer have to contend
with unprecedentedly low prices, and mat
ters smaller than the cost of fuel suffice
III many cases, 10 prevent them from keep
ing tnear machinery going. This condition
1ustment 10 reduced values that is reouired
in every branch of our industries. and
WHEN mas not YET been complied with in
This situation in the coal stocks has had
a somewhat depressing effect upon the
market az large, but not to the extent oil
materially affecting the stocks of other
roads Inere is still a firm undertone &c
the market. The bears fail to produce any
tnins beyond a fractional impression by
their raids, and the difficulty in gettine
stock to cover their sales discourages them
Between the reduction in the volume OF
off the market pending financial recon.
structions there is a real and very unusua'
scarcity Of stock, which greatly strength
ems the position of holders and gives q
steady bullish drift TO operations.
THE shipments Of gold to erman have
rot made much impression. This week the
rates of exchange have discouraged further
exports, and with the large supply avail
able at London there is the less inducement
for Berlin preferring to get the metal from
New York.
1.-The unusual excitement connected witt
the canvass for the elections has a ten.
dency TO divert attention from Wall stree
for the moment, but ii can hardly be sale
TO affect the tone of business. Consider
able interest is felt in the prospect as Il
currency legislation. but the state of opin
ion on the question in Congress and in in
terror sections is so undeveloped that il II
not an influential element on the business
of the Exchange.
Saturdays Bank CIearings.
At Observation-Disclosures, 1851, 404; bal
ances, sl,643, 1868.
At st. LouisAClearings. 1881. 900: balances
1853. 795.
At Misunderstanding. s2.040,1 52; bal
ances, 1921, 0S5.
AZ New York-Clearings. $751; FOG; bal
ances, A.472, 452.
At Boston-Clearings-s1s, OF, O22; balances
Sf,14S, 50s.
At Chica go-Clearings-S13, 527, 900. Money
fT4i2 per cent. on call, 5q6 on time. Ney
York exchange, 35c premium. Foreign ex
change opened dull. Sterling commercial
L 81 cc<i O.