The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-10-04
BANKERS NOT ALARMED
NEW YORK RESERVES REMAIN
SAFELY ABOVE THE LIMIT.
Stocks Once More Showing Strength
After a Two Weeks ReactiOn-LO-
cal Markets Active and Firm.

for demand and $4.S2l2 for sixty days; post
ed rates, $4.S3444 and S4S5hQ4S6; COM
mercial bills, $4.S1.
Bar silver, 561ac; Mexican dollars, 43c;
silver certificates. 55c. AT London bar sill
yer closed steady at 261zd an ounce.
Exports of specie from New York for the
week were $3.50, 1856, of which $10,940 were of
gold. Imports of specie for the week, ST.
1OS, 1884, of which $1,O1e,2S1 were of gold. I'M
ports of dry goods and general merchandise
for the week were 1878, 0S6
The New York weekly bank statement
shows:
Surplus reserve, decrease. .......... $447,100
Loans decrease ...................... 4592,VU
Specie, increase ...................... 454'9vJ
deposits decrease ............'...... o,o05'oV0
Circulation, increase ................. S2l,OOO
The banks now hold SIS, SOC, 400 in excess
of legal requirements
The New York Financier says: "Tht
statement of the associated banks of New
York city for the week ending Oct. 2 is proof
that there is no occasion for the fears en-
tertained earlier in the season of an actual
strmgency in the money market. Despite
the steady decline on the banks by reason
or the interior demand for crop money the
reserves are maintained at a secure point
and the natural effect of conditions which
have been making all season may be trust
ard in the future. The liquidation in loans
continues, the loss for the week bringing
the total TO an amount of $1,32O,2OO under
that reported three weeks ago. In the same
time deposits have fallen off SIT, 30, while
the reserve has decreased about $0,0O0OJO.
AS money has been flowing TO the interior
at the rate of $4000,OO0 or $0,OO0,OO0 weekly
during this time, it will be seen that the
banks have stood the drain very easily. The
demand for funds still continues, though in
lessened volume than reported for several
weeks past The decrease in deposits for
the past week, of course lowered the re-
serve requirements appr5ciaply. The 81 $4,000
gold received from Europe by one of the
banks does not seem 20 Isure in the cur
rent statement. The deposit changes of the
larger banks have been unusually heavy
during the week, the institutions having the
largest number of correspondents reporting
losses as a rule, although others, which
Inquire in the call market, have been affected
by the general liquidation. The October set
Elements have brought about some shifting
of funds, but the disbursements now being
mace VIII pe SHOWN 10 greater extern IN
the next statement. The Union Pacific fore
closure SALE under arrangements which
have been completed for payments extend
ing over a considerable period, will not
this assurance to some extent governed the
rate quotations last week The statement
as d whole is of very favorable character,
and with the certainty that gold imports will
follow any unexpected advance in money
the outlook is even brighter than predicted.
Three of the New York banks last week
made their clearinghouse settlements in
gold, owing to the scarcity of legal tenders
1t would not be strange, in fact, were the
treasury TO follow suit in this particular
before the close of the year"
Total sales of stocks were 222, 200 shares,
Including the following: Atchison preferred,
3,S09; Chesapeake & Ohio, 1855; Chicago,
Burlington & Quincy 7,712; Erie new,
1900; Louisville & Nashville, S,430; Manhat-
tan l., 6,220; Missouri Pacific, 6745; New
York Central, 1861; Northern Pacific pre-
ferred, 1918; Reading, 3,4OO Rock Island,
10,O43; st. Paul, 17,125; st. Paul & Omaha,
1850; Southern Railway preferred, 4,25O;
Union Pacific, 1860; Chicago Gas, 1900;
Sugar. 1850; Tennessee Coal and Iron, 4, SS5;
Western Union, 4,705; Chicago Great West
ern, 1850.
FIRST STRENGTH IN STOCKS.
Marked strength in stocks on New York
Change which developed in the late trading
Friday was resumed Saturday morning in
full force and continued with only one mo-
mentaFy pause from the opening until the
close of the short session. The buying was
eager and the covering of short contracts
put out during the two weeks reaction in
the market appeared to be urgent. There
was every indication that the reaction had
run its course and the agents employed by
the leaders of the former bull campaign
were buyers on a large scale. The stocks
that have shown the sharpest declines re-
Gently were foremost in the recovery Prices
OF Americans were advanced in London be-
fore the opening at New York and arbitrage
brokers bought for London account. The
stocks which were favorites in the London
buying We're those that have recently suf-
fered most severely from the liquidation of
foreign holders, rejecting a marked change
IN foreign sentiment. The various trade
reviews published this morning, all report
ing continued Improvement in trade and in
industries. and the additional state
ments OF railway earnings showing
to buy. An additional fall in the rate of
sterling exchange of sc for dividend bills
m ovid nrf
gold imports cannot be long delayed and
probably helped the market though gold is
so plentiful in New York at present that
some of the banks are settling their daily
balances at the clearing house in that
metal. The weekly statement of the clear
ing-house banks was also interpreted favor
ably. The statement clearly reflected the
pains the banks have taken to prevent
further heavy shrinkage in their surplus
reserves. The withdrawal in deposits of
$6,O02,S 500 is partially offset by contraction
in loans of $4.592 COO, making a total con-
traction for two weeks Of 81, 800. The
withdrawal of deposits find an additional
reflection in the decrease in legal tenders
of $2,4423 800. which was offset by net in
crease OF 1885, SEQ in specie, so that the ac-
VU0. The more profitable rates for money
have induced an increase in circulation of
SS2lOO There is no doubt that Withdrawals
or deposits would have been much larger had
II not been for falling off in the demand
Tor currency shipments to the South due
70 the interference with the movement of
the cotton crop due to the yellow fever
guarantees. The decrease to the South has
Deen onset by demand from the Eastern
ana Middle states to meet October interest
and dividend payments, and by New York
requirements for payments of taxes Sat-
urdays net gains in prices of stocks ran
from l to per cent, the advance being In
1ull tide when the market closed. The
STOCK market has been highly technical and
professional in its character all week and
the reaction which was the feature of the
week before continued up to late on Fri
DAY. The bears have been masters of the
situation, and there has been no aggressive
enort IN opposition to their successful at
tempt 10 beat down prices until Saturday
The large buying interest which was so
potent a force during the prolonged period
of the rise which eliminated two weeks
ago had apparently ceased operations and
the brokers' who had come to be reeognized
as the instrument of this important inter-
est occupied passive attitude apparently
content TO see the reaction take lis course
Gossip has been busy with the ouesfion ~
the Identity of the powerful pool which
led the bull market with so much dash ana
confidence and syndicates of bankers and
OF powerful corporations have been mem
toned as identified with the movement
HOW THE POOL WORKED
But, whatever their identity the fact is
now obvious that, before any evidence was
allowed to appear. that they had ceased TO
buy, and while the smaller operators and
the speculative public was still following
their apparent leadership they had houi-
dated a large amount of their purchases
and realized their profits. With no change
in the general favorable outlook for busi-
ness. and with continued increase I'm the
earnings for stocks. this operation left con-
dltfong ripe for technical reaction. II had
their legitimate actual value. but it had