The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-10-17

The New York weekly bank statement
shows the following changes:
Surplus reserve, increase. ,129, 900
Loans, decrease. ............... 2614 100
Legal tender, increase. ................ &C. 400
Deposits decrease ................. 1880
Circulation, increase ................. 4650
The banks now hold S14614,5OO 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 great deal of liquidation
in Stock Exchange busiRess and an analysis
of the items of the individual banks shows
that the loan changes in two large institu-
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
menIs of International 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 a situation such as
prevailed last season, when the United
States loaned large amounts to Europe on
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
COO shares. including: Chicago, Burling-
ton & Quincy, S,205; Louisville q Nashville
1910; Northern Pacific preferred. 5,425; Rock
Island, 3.S2J; st. Paul, 10.100; Union Pacific,
S65s; American Tobacco. 6, 164; Bay State
Gas 1906; Chicago Gas, 23, AS; 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 a week of
a bear campaign. The market showed
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 u in Manhattan on
short sales, and of point 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 a 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-
cisms of the minimum bid agreed to by the
government for the satisfaction of its claim
and agreement to the foreclosure sale Lon
don was a buyer on balance Saturday to a
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
ing the market now for signs that it has
turned upwards again, Such process has
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 Cne-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 Ii is invariably the rule that a back
ward swing occurs covering 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 i
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
lquidated 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 demonstrate by the fact that when
the alleged cause removed there IS no
cessation in the Lpeline The reaction be-
gan with the expressed fear Of stringency
in the money market There has been no
stringency and 1t is now evident that there
VIII not be. The motive Of last weeks
selling was alleged TO be fears Of damage
by drought. but the breaking Of the drought