The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-10-18

posted rates, $4.S2laa4.S3l2 and S4.S51z; COM
mercial bills s4.sl.
Silver certificates. 5SG5S1kc; bar silver,
5S9sc; Mexican dollars 4412c. At London bar
silver closed steady at 27 S-16d an ounce
The exports of specie from the port of
New York for the week amounted to $921,-
743 in silver; no gold. The imports for the
week were: Gold $1.762 $3.50; silver, $549l3;
dry goods, $1,3S9. 2l3; general merchandise,
$7.O51,2S1
The New York weekly bank statement
shows the following changes:
Surplus reserve, increase. 81, 1923 900
Specie increase NEUTRALITY-SUSPICIOUS.. 938, 30
Legal tender, increase. 26,400
Deposits, decrease Observation-Disclosures. i67 go
Circulation, increase ................. $500
The banks now hold $14614, 500 in excess
of the requirement of the % per cent. rule.
The New York Financier says: "A feature
of the statement of the Associated Banks of
New York city for the week ending Oct 16
that attracted some attention was the
shrinkage in loans. 1t is rather difficult to
explain the loss except on the theory that
there has been a great deal of liquidation
In Stock Exchange business and an analysis
of the items of the individual banks shows
that the loan changes in two large insti.u-
tions-the National Union and the Ma
tional City Banks-account for the differ
ence reported since the previous week. The
effect of the gold imports is shown in the
increase of specie. The gain of legal ten
ders-the first expansion in this item since
Aug. 2S-seems to show that the interior
movement is nearing an end. This is not
exactly the case. although the drain dur
ing the week has been less than usual, and
the treasury demands have been light. All
the gold imported last week does not figure
in the totals, so it is reasonable to suppose
that the position of the banks so far as cash
is concerned is stronger than indicated. The
statement points to easier money
market, in the absence of any marked ac-
tivity in speculation, and the official state
mentS of the national banks of the United
States, as published last week, showing
their strong position with reference to re-
serves. strengthen this view. The rising
rates for money abroad and the continued
ease heretofore show situation such rs
prevailed last season, when the United
States loaned large amounts to Europe
sterling bills. The quotations for money
in New York and London are undergoing
changes which will probably place foreign
above domestic rates for some time TO
come"
The total sales Of stocks Saturday were
136,000 shares including: Chicago, Burling-
ton g. Quincy, 500; Louisville q Nashville,
800; Northern Pacific preferred, 5,425; Rock
1858; American Tobacco, 6,164; Bay State
Gas, 1900; Chicago Cas- 2S,445; Sugar, 500;
Chicago Great Western, 1920.
NARROW FLUCTUATIONS.
There was nothing TO indicate any urgent
covering of short contracts in Saturdays
New York stock market. such as is very
often customary at the close of week of
bear campaign The market showed a
firm tone during the greater part of the
days trading, but the fluctuations were
very narrow, and the close was at small
declines from the best. These were in SYM
pathy with a break of "a in Manhattan on
short sales, and of APPOINT in Chicago Gas,
which was the most striking demonstration
by the bears during the day. Both parties
in the market seemed equally apathetic
There was good buying in the two leading
specialtieS Chicago Gas and Sugar, the for
mer equally attributed to purpose of in
side interests to acquire stock and a ma
neuver TO squeeze the shorts. Missouri Pa
cific was offered to some extent probably
in sympathy with the drive against Man
haitian. Union Pacific exhibited some de-
preston on account of the EXPRESSED criti-
csms of the minimum bid agreed to by the
government for the satisfaction of its claim
and agreement to the foreclosure sale. Lon
small extent, and afforded some support to
the market. None of the leading stocks
show important net changes, but most of
these are gains. Experts have been watch
turned upwards again. Such a process has
apparently been inaugurated twice dur
ing the week but the upward course
came to stop with the closing of
short contracts and reaction re-
sumed its sway The reactionary tendency
has now continued dominant for about a
month and the average decline in that
time is about one-half as much as was the
rise in the previous four months of the bull
market. Statistics might be cited OF the
proportions of reaction to decline after pre-
vious great bull markets. but precedents
are misleading and various. The main fact
is that even in the full tide of the conditions
which induce an advance in prices of securi-
ties 1t is invariably the rule that a back
ward swing occurs covering a material part
through the whole of the advance. The
professional traders sold out their stocks
a month ago at the high prices and they
don't care to buy again SO long as there is
prospect of causing further declines
During the week many holders Of stocks
who have been persistent in holding on for
a turn have become Disguised and have
liquidated on large scale to save further
loss thus giving material assistance to the
bear party The motives assigned for the
selling are various and of little real force
as is demonstrated by the fact that when
the alleged cause is removed there is no
cessation in the decline. The reaction be-
gan with the expressed fear of a stringency
in the money market. There has been no
stringency. and it is now evident that there
Will not be. The motive of last weeks
selling was alleged to be fears of damage
by drought, but the breaking OF the drought
on last Sunday has not restored confidence
to buyers.
FREIGHT RATE QUESTION
Much has been made of the unfavorable
effect on railroad values. which follow adj
verse decisions by the Supreme Court in the
maximum freight rate case and Joint Traf-
fc Association case. Yet the prevalent be-
lief In the street is that the right OF the
State OF Nebraska to fix maximum freight
rates will be denied, and there has never
been much doubt felt that the Joint Traf-
nc Association will be declared illegal, as
was the Transmssouri Freight Association.
There is more sincerity in the apprehension
expressed that the Cuban problem will III
umateiy lead TO a rupture with Spain. The
substantial harm done by the yellow fever
outbreak and the consequent interruption
TO railroad traffic is brought in evidence
by the decreased earnings shown by the
railroads. IN the territory affected. The adj
nltted rate cutting by the railroads is also
feared Tor It's effect on earnings, as is the
railing OH in the grain movement. The re-
turns OF railroad earnings nevertheless con-
tinue TO make large showings said 20 be
due TO the movement of general merchan-
disc and passengers
The trade reviews all report continued
expansion in their lines. the Improvement in
the iron industry being especially marked.
the decrease in the stocks indicates that the
rate Of consumption has increased about 40
per cent since July i. Further engage
ments OF gold for iI1port were expected to
have been made this week, but the pur-
chases of exchange bills against last week $
engagements have kept the rate of ex-
change above the import point. This point