The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-09-05
THE MORNING NEWS: SUNDAY, SEPTEMBER 5, 1897.

been well maintained and the volume of
dealings has shown constantly broaden
ing demand, the sales on Friday approach
ing the maximum for the year aud those
to-day the maximum for a Saturday That
this tremendous speculation has absorbed
vast sum of money is evident from the
clearing house statements and stil more
evident from hardening of exchange rates
during the week, the purchase of securi-
ties abroad having apparently offset the
heavy foreign purchases of our bread
stuffs.
The absorption of funds have made no
appreciable effect upon the rates for
money, which still remain, unprecedent-
eddy cheap. The movement of currency
to the interior has been larger than last
week, but Is still small. considering the
large expansion of business indicated bv
the clearing house statement The into
rior needs have thus far been largely sup
piled from interior sources. contrary to
the rule heretofore, The fact that ex-
change remains above the gold import
point is due in part TO the heavy pur-
chases of securities by Americans in Lon
don, each incoming steamer bringing large
consignments. But while these large pur-
chases are absorbed without any effect OF
the local money market, the rates for
money in London continue to harden in
spite of large sales of securities, the Bank
to contract it's loans and there is a mar
gin of profit in the London money rates
sufficient to induce drawers of exchange
to leave their funds at interest there, de-
ferring the gold import movement. How
much longer the cheapness of money will
continue in New York in face of all this
expansion of demand is that question to
which an answer is, perhaps indicated
by to-day's bank statement, showing a
decrease of S., 403 $50 in the surplus re-
serve. The cheapness of money is an in
centive to a rise in the prices, especially
in view of the recent placing of large is
sues of railroad bonds for long periods at
an interest rate of 31a per cent, which
bonds command a premium In the mar
ketS.
The reduction in rate of interests and
return on invested money naturally tends
10 raise the principal value of securities
on which the dividend rate is unchanged
Recent prices of government bonds are
at high records.
That the plethora of money and its re-
sulting cheapness are an influence in this
way in the rise in prices of securities, as
well as the increase as shown by the
properties is evident. The extreme gains
in the stock market have heen indicated,
but the whole list is materially higher and
practically ali the Industrials.
The total sales for the week were 3,194,-
sol shares.
The bond market has shown great ac.,
tivity during the week and prices are
generally higher. Notable advances are
shown by the Atchison. Fort Worth and
Denver City, Northern Pacific and Rio As,
Texas and Pacihcs, Wabash seconds, Nor
folk and Western and Reading issues. To-
tai sales, $1976S 400. Government bonds
are Is to per cent. higher on the week
Total sales of stock to-day were 1903 obs
shares. including Atchison preferred, 1920;
Chicago Burlington and Quincy, 7,720;
Louisville and Nashville, Ii $50; Missouri
Pacific, 1856; New York Central $500:
Northern Pacific, 500; Northern Pacific
preferred. 80, $50; st. Paul, $500; Wabash
preferred, $3.50; American Tobacco, 5.720;
Bay Gas, $3.50; General Electric, 1886; Su-
gar, 1880; Western Union, $3.50; Chicago
Great Western, $500