The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-20
STOCK PRICES ADVANCE
PRACTICALLY UNINTERRUPTED RISE
IN SATURDAYS SESSION.
Nervousness Continues Over the Drain
ON the New York Money Market
Local Trade Heavy.

tual business in bankers bills at $3.50 for
demand and at $4s2G4s21s for sixty days;
posted rates, $4.S3@4s31s and $4.S6a4.S6l4;
commercial bills, $4.S1l2.
Bar silver, Sc; Mexican dollars, 45c; sill
yer certificates, soc. At London bar silver
closed quiet at % 5-16d an ounce.
The New York weekly bank statement
shows the following changes:
Surplus reserve, g 16l $ 05
Specie, increase ....................... 5SI,1W
Legal tenders decrease. ......... 4S S6Sl Ivy
Deposits, decrease .........4........... ozdo'9W
Circulation, decrease. ............. lO5,lVo
The banks now hold $15 726,050 in excess
of the requirements of the % per cent. rule.
The New York Financier says: "A de-
crease of 49, ,375 in the surplus reserves
of the New York banks, following reduc-
ton equally as large for the previous week,
brings the excess cash in the banks to $l5,-
1864 $50, or very nearly to the point reached
at the height of che outward movement
during the crop season. In view of this fact
the sharp advance N money rates noted
early last week, may be expected to con-
tinue for some time, although the upward
tendency has been regarded heretofore as a
temporary incident. The changes in the
statement for the week are so intimately
connected with the payment of $4,000 into
the subtreasury by the Union Pacific COM
mittee that the totals do not require de-
tailed attention. The National City Bank,
which has been prominent in financing this
operation, loses over $7,00O00O in deposits.
Its cash reserve has also decreased some
thing like Sc, OOO, 900 dollars and its shrinkage
I'm loans is more than the total noted in
the average of all the banks. The other
banks, aside from this one institution, there
fore, appear to have gained both in depos-
its and cash. and their loans are slightly
higher. The bank statements for the next
few succeeding weeks should be unusually
interesting and important as two addition
al payments of over IS, 900 are to be made
to the subtreasury before Jan. and the
treasury, on the other hand, will begin Dec.
q, the disbursement of the principal of ma
turing Pacific bonds, which will release,
when the operation is completed, something
like $90,OO0,0OO. Whether this money, which
may be slow in entering the active market,
and the rather heavy deficiencies which the
government will probably incur over the
January disbursements, will make up for
the contractions due to payments into the
treasury on Pacific settlements is the key
to the Immediate future of the money mar
ket. If interest rates continue to harden,
and exchange weakens, as was the case
last week. some interesting developments
may be expected.
GOLD MAY COME BACK.
There can be no proft in sterling ex-
change investments under these cir
cunstances, and as the treasury
reports show an increasing ex-
port balance in our favor, rates
for money abroad will have to be main
tanned very firmly to prevent losses of
specie to this side. Shipments to the South
and the natural shifting of funds as the
January dividends become due, are points
in favor of continued hard money. OF course
these conditions are as yet but vaguely de-
tined and may be quickly changed, but on
the Whole are important enough 10 bear in
mind during the next few weeks.
me 80 sa 5es OF STOCKS on Change saturday .
lington a. Quincy, 1923; Louisville a. Nash
vile, S.U4O; Manhattan, 12,52O; Missour ia
ern Pacific, $3.50; MOI thern acific prefer ed,
$50; kock Island, 5,5o5; St Paul, II 4A;
chicago Great Western, 1850: Peoples Gas.
The rise of prices on the Stock Exchange
Saturday was practically Uninterrupted dur
gains are the result, exceeding 2 per cent.
in some Of the specialites, over a point in
large number of leading active stocks and
a sharp fraction all through the list The
rise was almost wholly the result of profess
sional buying, outside interest in the mar
ket being at a standstill. Bull operators
extended their lines aggressively, and the
bears covered heavily. Prices for Amer
morning, that center having become quite
persistently bullish on the outlook for val
melted an advance in the International
stocks from the opening. The specialties
were next to show strength, Manhattan be-
coming buoyant on belief that conditions
imposed on the underground rapid transit
project by the Appellate Court would be-
Joyed the benefit of a rumor that differ
ences had been adjusted between the inter
ests seeking anialgamation of the gas
companies. New Jersey led a further adj
vance in the coalers on the prevalent belief
ri If ron res riQ n nj
maintenance of prices of product. Sugar
was also quite buoyant on covering of
shorts This combination OF strength in in
dividual stocks, due TO special causes
would have been powerful sustaining fac
tor in itself. But. the incident that deter
mined the tone of the general speculation
all through the list was the. report from
r London. afterwards shown to be erroneous,
that over half million dollars in gold had
been withdrawn from the Bank of England
for shipment TO the United States Taken
in connection with the easing of the call
and the ouantitv of funds offering at that
rate, this report had the effect of dissi-
pating some of the fears of traders in
curities as to the future of the money mar
weekly bank statement, with the large de-
crease shown in surplus reserve, gave only
momentary pause to the upward move
ment which was then renewed and con-
tlnued with buoyant tone to the close of
the market
AN EXPECTED REACTION.
Up to Friday of last week it looked very
much as If the expected reaction in the
stock market had set in, which is as much
expected i'm the natural course of things as
the December rise" But Saturdays de-
velopments leave the future course of the
market very much of a problem 1t is GER
tain that there was large profit taking dur
Ing the week in expectation of decline
and realizing to close out speculative lines
on account of the stiffening in the rates for
money. Owing TO the condition of the money
market it was not expected that there
would be much ease in rates again before
the first of the year Besides the usual ac-
cumulation of funds preparatory to the dis
pursefnent of January interest there has
. been Withdrawn from the market during the
: week over IS 600 0O0, which was paid into the
United States treasury on account of the
Union Pacific sale. Another similar pay
ment Is 10 be made on Dec. % and the last
on Jan. ;. A reason given why these later
payments are being paid into the treasury
instead Of being left on deposit i'm New
York banks as was done with the earlier
payments, is that the price of United States
bonds has risen to so high a point that a
high premium would have TO be paid to se-
cure sufficient number 10 secure these
deposits. Much stress has been laid on the
governments announcement that X would
fAa RCD af he 81.