The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-10-25

New York for the past week aggregated
$9l6,7O3 in silver and So 900 in gold The i'm
ports for the week were: Gold, $4.562Sn
silver, $96.2S6; dry goods and merchandise,
Ss.5O3017.
The New York weekly bank statement
shows the following changes:
Surplus reserve, IS, 290, 200
Specie, increase .................... 5, 1863, 500
Legal tenders. increase. 2,76I 900
Circulation, increase ................. lO4,zO0
The banks now hold $40, 904. 700 in excess of
the requirement of the % per cent. rule.
The New York Financier says: THE
statement of the associated banks of New
York city for the week ending Oct. % shows
an increase in reserve of IS, 1890 in two
weeks Loans in the same time have de-
creased almost in the same proportion,
while deposits have remained stationary.
The liquidation, therefore, appears to have
been carried on in a manner that has not
disturbed the deposit item, but this affords
no explanation of the current business of
the week. The gain in cash has been
largely in the form of specie, the banks
holding $24,OO0,0O0 more gold than legal
tenders. The specie increase, of course, is
due to the imports of the last month, and
the expansion in legal tenders probably
currency from the interior. The flow of
money to the West is checked for the pres
ent. That the banks recognize the general
tendency TO ship idle money to this center
for the interest it brings is revealed in ru-
mors of a general effort to reduce rates
on country balances from 2 to 1l5 per cent.
This has been tried before, not only in New
York, but in other cities, but it does not
always prove effective for the reason that
the different banks cannot be brought to
work in concert The official statements
of the national banks in widely different
sections of the country. indicating very
large cash resources, shows what may be
expected when money begins to flow in this
direction in full tide later in the season.
Country banks are now in the New York
market for commercial paper, and many
others are paying off loans before maturity.
The Shrinkage in loans for the week how
ever, is not to be attributed to this source.
Part of the loss is due to operations in
volved in the gold import movement, and
TO liquidation of maturing paper, that
under different circumstances would have
been renewed There is no question that
some of the surplus money in banks will
be absorbed in discounting sterling bills.
and also III the Union Pacific foreclosure
settlements. Whether these requirements,
together with current business needs, will
be large enough to maintain the market at
anything like firm figure is doubtful. The
immediate outlook, judging from the bank
statement is for easier money!
SMALL STOCK SALES.
The total sales of stocks Saturday were
81, 500 shares, including the following: Atchi-
son preferred, 1852; Chicago. Burlington &
Quincy, 5,645; Northern Pacific preferred.
5000; Rock Island, 1886; st. Paul, Ass;
Union Pacific, 12.615; Bay State Gas, 1920;
Chicago Gas, 15.O2S; Sugar, 6,74O.
Saturdays New York security market was
4rfE f1.rI1 f1,ro. rrl,o TNlSe
ness done by professional traders. and
this included some settling for foreign ac-
count. some of these being. represented as
the placing of short contracts by bear trad
ers, who argued that it was because of the
DANGER OF the Cuban question leading to
strained relations with Spain, indicating
that prices would decline. The Sunday in
terval before trading will be resumed made
these operators cautious in their ventures
for developments that may change tha
situation before Monday. The disnosifion re
restrict operators for short turns was very
obvious, ard the only movement of prices
seems 70 oe due to professional manipula-
ton sIht total sales We're less than $4,000
shares, q figure lower than for any Satlr-
day ~ months. The greater part of these
sales were of shares of industrial special
ties. the railway list being decidedly
neglected. Some firmness was manifest in
the granger shares on the theory that they
Nebraska maximum freight rate case which
IS expected from the Supreme Court on
the right of the State of Nebraska to tiS
maximum freight charges by the RAILWAYS
sugar displayed some strength during the
day and closed with small net gain Chi
cago Gas and Union Pacihc were the only
stocks traded in to the extent of more than
10000 shares. The latter was weak on the
doubt cast on the success of the reorganiza-
ton plan by talk of an opposition svndi
cate, which continues to be talked of in an
I'll defined way. Net losses are general hut
reach a point or over in only a few eases
The increase of the surplus reserve of the
serve point raised by an increase in de-
posits was not counted a favorable factor
in the stock market, though it naturally
tends to ease the money market and to
strengthen the position of the banks tech
nically. The Increase In the holdings Of
actual cash was $S626,e00, the gold arriving
from Europe Friday and Saturday a week
ago being included. The liquidation of loans
In face of this easy condition reached the
large total of $6941 500. This was in large
part due to the buying of commercial pa
per in this market by Western banks. choice
single named short paper having been
placed with Chicago bank during the week
at 3% per cent. according to a prominent
authority Numerous other Western CEN
tiers have offered money in New York and
their deposits are reported to be higher on
account of large payments of Indebtedness
BY farmers and Western business men who
nave reaiized on the grain crop. The quick
movement of the grain crop has led 10 an
early cessation of demand for funds for that
purpose; ana the interruption of the move
ment OF the cotton crop defers the demand
from that qquarter. The release of funds
IN New York as a consequence of this con-
oltion has led to a marked easing of the
money market. call loans Friday and Satur-
day being offered in abundance at 2 Der
cent. and IN some cases below that
PLETHORIC MONEY MARKET
The money market is almost plethorfc
and the falling off OF funds is not looked
on in Wall street as an altogether favor
able indication of the progress of general
business. 1t is reported that a movement
is foot among New York hanks RI re
duce the interest they pay on the balances
OF out-of-town banks from to ~ per cent.
This condition OF the domestic money mar
ket is coupled with something very like
stringency In the Berlin money market.
owing to keen activity in business and to
stiffening of rates In the London market
SIS result OF efforts by the Bank of Eng
land to prevent gold coming to the United
States. These efforts consisted of raising
tho price Of gold bars and of American
eagles and OF borrowing largely with a