The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-13

VtNso-oS
81, 2O6, $50; general merchandise, $5,724,362
The New York weekly bank statement
shows:
Loans, increase ............e......... 1881, 800
Specie, decrease .................-.... 609, 800
Deposits, increase ....-.-............ S,S5l, SO0
Circulation, decrease ................. $3.50
The banks now hold SIS. 1897, 425 in excess of
the requirements of the 25-per-cents rule
The New York Financier says: 1.-The
Union Pacific reorganization committee last
week made an additional payment of 49,,
100000 on account, and this sum, passing
into depository banks, has Increased the av-
erages of the clearing house institutions
no less than 100000 in deposits. The in
crease in loans is connected with the same
transaction but it has swelled the total
loan item to $607, 725, 300 which is by far the
largest ever carried by the New York
banks. The effect of the transfer of the
Union Pacific to the new purchasers may
be traced in the expansion of the loan item
of the banks during the past five weeks
On Nov Is last loans stood at $575. 300, 600, as
compared with $6O7, 725, 600 Dec. IL. The loan
increase, therefore, has been over $32, 900 COO
In the same time deposits have increased
$40OOO,0OO and cash reserves $S,0OO000. Ad-
hitting that the regular mercantile demand
for accommodation had some place in this
change, the main cause contributing to the
enormous increase has been the operation
in connection With the Union racine syn
dicate The deposits of the bank most
prominent in the financing of this deal have
grown nearly 500 900 900 in four weeks, and
its loans 500 900. The banks have been
gaining cash from the interior for number
of weeks past. but the effect of the rea-
sons just set forth has been greatly min
imized. The rapid expansion in deposits re-
qures each week heavier reserve, and the
operations of the past six days have result
ed in decrease in the surplus cash in
banks of 235525, bringing the excess re-
serve to $l9, 1881, 425 the lowest since Oct. 10
last That the changes noted are of a spe-
cial character is also shown in the item OF
cash, the loss for the week having been
$1.012 200. This shrinkage can be traced to
several large institutions, one of which has
probably decreased its cash through the
payment of the sugar dividends. There
will be more or less shifting of funds as the
first of the year approaches in anticipation
of the heavy dividend payments, and an
other installment of the Union Pacific
money is also due about that time.
MONEY MAY BE CHEAPER.
1.-The effect will be to make material
changes in forthcoming bank statements,
but with the supply available, funds in
sight and the credits held abroad there does
not seem to be much chance for anything
like permanently higher level for money
rates. The governments payment of matur-
ing bonds the first of the year will release
a great deal of money now locked in bank
vaults us special deposits
Total sales of stocks, 126,900 shares, in
Guiding: c., B. & O., 5,5O4; Louisville &
Nashville, S,7S5; Manhattan, 5,746; Missouri
Pacific. 41.6S7; New Jersey Central, 497O;
Northern Pacific, $3.50; Northern Pacific
preferred, 1O,l00; st. Paul, 5,u1; Southern,
APO; Chicago Great Western, 4,71O; People
Gas, 1880; Sugar, 1920.
Saturdays stock market reflected the
tendency Of professional traders to close
contracts at the end of a week rather than
keep them open over Sunday, and also a
natural reaction toward a higher level.
There was some bear pressure against prices
at the opening, Manhattan being driven
down 11s and Sugar yielding point after a
small gain. But this lead failed to induce
any large following, and 1t became apparent
that Fridays liquidation had run its course
for the present. The bull contingent was
prepared to offer Vigorous support to weak
spots, and large buying orders for their
account turned the tide. Sugar was the
center of the markets strength and the
firm resistance of prices drove the bears to
cover. There was noticeable sluggishness
of price movement in some of the most
prominent stocks in the market on the rise.
Sugar was quite buoyant and rose to within
about points of the highest of the week,
closing with net gain IF IA Its range
for the day was points The market was
aided by the recurring possibility that de-
cision may be handed down by the Supreme
Court on Monday in the Nebraska maxi
mum freight rate case. Wail-street traders
in railroad securities maintain an abiding
will be in favor of the railroads. and the fact
that Monday is decision day with the Su-
preme Court has made Saturday a day of
timidity with the shorts ever since the de-
cision has been pending with the court in
session. Assertions were also given con-
sideration that there is a growing possibility
of favorable action by Congress on bills to
authorize pooling and against ticket scalp
ing" and this, added TO the strength of
the railroads. Northern Pacific preferred
enjoyed the benefit of the first dividend de-
clared yesterday by the directors since the
reorganization of the company and of the
favorable statement of earnings given out
at the same time. The slight recessions
from the best of the close were probably
induced by the bank statement. The large
shrinkage in the surplus is due not alone
to the raise of the legal reserve limit by
the heavy increase in deposits. but by an &C
tual decrease in cash of 81 ,0127 200. The items
of loans and deposits with the large IN
crease shown are affected by the further
payments on account of the Union Pacific
sale. There has been movement OF cur
rency to ST. Louis and New Orleans during
the week which probably accounts for the
States new tours was bid up - per cent
and of the old tours registered Is.
THE WEEK ON CHANGE.
The weeks net gains have been reduced
as was the case last week, by the profit
taking of professional operators on Friday.
The manipulation of the market by the
large interest which have embarked on a
bull campaign was very obvious during the
keep the course of prices upwards by Wig
orous support at weak points and by inct-
ing sharp rises in individual stocks to sus-
tain the general list Some of the reports
set afioat to effect this latter purpose con-
tradicted themselves in the course of the
week. and nothing could then prevent a de-
cline in the price of the particular STOCK
with q consequent unsettling effect on the
market Thus Sugar was pushed up 10 l45lA
on reports that an extra dividend on the
stock was certainly forthcoming, and the
declaration of only the regular dividend
drove the price down below 40. Northern
Pacific preferred was forced down l5s on re-
ports that action on the dividend would be
postponed. These declines uncovered stop
loss orders and through the list and broke
the market and served materially 10 reduce
the net gains on the week Union Pacific
was persistently weak on account of the
President order that the government
should qualify a bidder at the Kansas
Pacific sale and the subsequent request for
q postponment of the sale. The weeks re-
turns Of railroad earnings have made re-
markably favorable showing, the November
statement Of New York Central being a not
able exception. Roads in the South and
Southwest have shown especially heavy in-
creases and their stocks have shown the
largest gains In prices.
Money has continued cheap ana easily