The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-10-24


the requirement of the % per cent. rule.
The New York Financier says: 1.-THE
statement of the associated banks of New
York city for the week ending Oct. rs shows
an increase in reserve of So, 49, 200 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 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.OOO0OO 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
represents the first of the return tide of
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 to IL 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
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 i'm
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 in 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, 5645; Northern Pacific preferred
1900; Rock Island, 1885; ST. Paul, Ass:
Union Pacific, 12615; Bay State Gas, 1920:
Chicago Gas. hops; Sugar, $40.
Saturdays New York security market was
intensely dull throughout. The only busi-
ness done was 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 the
situation before Monday. The disposition to
restrict operators for short turns was very
obvious, and the only movement of prices
seems 10 be due to professional manipula-
ton. The total sales We're less than 80 OCO
shares, a figure lower than for any Satur-
day IN 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 thew
will benefit from favorable decision in the
Nebraska maximum freight rate case which
IS expected from the Supreme Court on
Monday-that Is to say, a decision DENYING
the right of the State of Nebraska To fin
maximum freight charges by the railways
Sugar displayed some strength during the
day and closed with small net gain Chi
cago Gas and Union Pacific 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-
tion plan by talk of opposition syndi-
cate. which continues to be talked of in an
al defined way. Net losses are general huf
reach a point or over in only a few cases
The increase of the surplus reserve of the
banks of 1920, 200, even with the legal re-
serve point raised by an increase in de-
posts. was not counted a favorable factor
IN the stock market. though it naturalIv
tends 10 ease the money market and to
strengthen the position Of the banks tech
nically The increase in the holdings OF
actual cash was So GIG, COO. the gold arriving
from Europe Friday and Saturday vveei5
ago being included. The liquidation Of loans
IN face of this easy condition reached the
large total of S694i 600. This was In large
part due TO the buying of commercial pa
Der in this market by Western banks choice
single named skort paper Having been