The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-06
MONEY MARKET PUZZLE
BIG EXPANSION IN LOANS AND DE-
POsITs FILING UP RAPIDLY.
Indifferent Trade in Stocks, with a
Local Markets Strong.
At New York, Saturday, money On call
Was nnmfnalIv 1fLn9 nar cent


Bar silver. $3.50; Mexican dollars, $3.50;
silver certificates, 5915c. AT London bar sill
yer closed steady at n 9-16d per ounce
The exports of specie from the port of
New York during the week amounted to
s21.901 in gold, and $94S.S36 in silver. The
imports were Gold. $656S3; silver, sos 1888;
dry goods. $l2O6,G9O; general merchandise,
.s7,42S,5 O7.
Total sales of stocks Saturday wee 1880
shares, including the following: Chicago,
Burlington & Quincy, 6,1O1; Manhattan, 1908;
Missouri Pacific, S,16O; Northern Pacific pre-
ferred, 1900; Rock Island, 1858; ST. Paul,
7O55; Bay State Gas, S125; Chicago Great
Western. II, $50: Sugar 1871.
The New York weekly bank statement
shows the following changes:
Surplus reserve, decrease. ............. $437 975
Leans increase -...,..................3,4 ,5OU
specie, increase .......,....,.......... 359, 800
Legal tenders, increase. S27, 900
Deposits, increase ....................6,417,10 100
Circulation, decrease .................. SO, lO0
The banks now hold $22, 122 $50 in excess
of the requirement of the 25 per cent rule
The increase in cash was not sufficient to
cover the increased requirements of the
legal reserve caused by the heavy increase
in deposits, and the consequence is still
further decline in the surplus preserve.
There has been nothing in the general re-
week to account for the expansion of 49,
476,5OO in the loans, and it is probably due
to borrowing on exchange. This is part
of the somewhat complicated operation, the
simple result of which is to leave at inter-
est abroad the money which has accumu-
lated there on credit instead of drawing on
1t by exchange bills. 1t is estimated that
over $l0,O0O,000 of foreign exchange has been
allowed to accumulate in this city during
the week. and that the fact that prices of
exchange have not been materially lowered
shows that Il is withheld and the money
loaned abroad. There is a continuance also
OF investment buying of long exchange in
anticipation of the usual return movement
of trade after the first of the year. AL
though the imports of general merchandise
at this port for the week show a sharp
falling off, the receipts at the custom house
indicate growth of the import movement
during November which buyers of long ex-
change expect will increase still further as
the stocks are worked off which were inn
ported in anticipation CT the tariff law. I'm
less the import movement of general mer-
chandise shall become very heavy in the
next few months long exchange must prove
poor investment in view of the enormous
outgo of merchandise of the last few
months
The New York Financer of Saturday said:
The enormous balances which the New
York banks have been accommodating for the
past few months are shown in the clearing
house statement for the week Loans ere
now within 81 100000 of the six hundred nil
lion mark, and deposits are 1858 27S,600, which
is one-thrd the total dividend deposits re-
ported by the $3.50 national banks in the
United States on Oct; last. The rapid
will be understood better when it is stated
that the gain in deposits since that time
$50 COO 900 Comparative figures show that
fifty millions of these increased deposits and
forty millions of the loans have been made
time over $9l 100000 of net deposits The
statement of the banks for the week is ia
vorable. Loans show a continued increase
the expansion having been distributed
among a larger number of institutions than
has been the case for some time past The
number of banks clearing through the
clearing house has been decreased one
through the absorption of the United States
decrease of $2,2lS 800 in the loans and $780,
600 in the deposits of the latter institution
reflects this consolidation.
INCREASED DEPOSITS.
The increase of deposits for the week is
due in great part to special causes, one
bank alone reporting an expansion in this
item of $6S430OO, which is larger than the
combiped changes of all the other banks
This WAS due to circumstances connected
with the Union Pacific settlements. Five
banks gained in deposits nearly thirteen
millions, from which it is to be inferred
that the deposits of the other ffty-nine
banks in the clearing house are about So
OOOO00 less than at the end of the previous
week. The gain in cash, according to the
statement was 81 ,166, 800 but this too seen1s
involved in special transactions. 1t is known
that the banks received from the interior
more than two millions in excess of shin
mentS, but since one bank alone increased
its cash So, S00OO0 and the gains made IN,
three amounted To IS 800 600, il follows thar
the large majority of the banks has de-
creased reserves. ale statement, taken as
a whole proves TIE banks to be in strong
condition. The lalger institutions are buy-
ing sterling bills and as the Union Pacific
deal has been announced without the first
suggestion of disturbance, the outlook is
Tor cheap money for some time to come"
Saturdays New York stock market was
left almost entirely to the room traders and
they seemed disposed to depress prices dur
ing the early part of the session by short
sales. Their effort met with little response
and they covered before the close. bringing,
prices in most cases slightly above Fridays
close. The movement of prices was, how
ever. trivial throughout the day, except in
a Few special cases. Manhattan reflected
the anxiety of those who had bought Fri
DAY under the mistaken impression that the
underground raplC-tranSit plan had been de-
clared unconstitutional Heavy offerings at
the opening sold the stock down a point.
the lowest of the day. The close was near
the low point after a full recovery in the
meantime. AL sorts of rumors were afloat
regarding the stock and the dealings in it
were at times quite feverish. Sugar was
traded in for the most part at level below
Fridays close, the supply of stocks being
Great Western showed degree of strength
on account of its large percentage of in
crease of earnings for the fourth week in
November. Susquehanna & Western con-
Timed TO rise in price and Delaware & Hud-
son of the coal group sympathized. but New
Jersey Central and the Reading stocks,
the other hand. were heavy. The days
news, so far as IL was regarded, was favor
able, statements of fourth week earnings
that were published showing large earnings
and handsome increases.
London advices during the week have re-
ported a very heavy American demand in
that market for high-grade American rail-
road bonds. The same demand has existed
In the New York market, with very linn
tied supply which was largely furnished
for foreign account well as in London
This would indicate a further heavy trans
fer 10 this side of the water of the highest
priced railroad securities in sufficient vol
une 10 have quite an appreciab.e effect on
the exchange balance. The activity of the
bond market has been a feature Of the
Stock Exchange all the week. and total
dealings In bonds Thursday were of
par value Of nearly H.10G000.
SPASMODIC STOCKS.
The activity Of the stock market has been
spasmodic. The week opened with evil
dences Of an awakened outside interest in