The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-05
MONEY MARKET PUZZLE
BIG EXPANSION IN LOANS AND DE.
POSTS PILING UP RAPIDLY.
Indifferent Trade in Stocks, with q
Number of Shares Scoring Gains
Local Markets Strong.

At New York, Saturday, money on call
was nominally 113q2 per cent.
Prime mercantile paper, 3g4 per cent
Sterling exchange was easy, with actual
business in bankers bills at 81 S5% for de-
mand and at 1888 for sixty days; posted
rates, $4.S4 and 1887; commercial bills, 4S215
Bar silver, 59ssc; Mexican dollars 467sc;
silver certificates, 5914c At London bar sill
yer closed steady at 81 9-16d per ounce.
The exports of specie from the port of
New York during the week amounted to
81, sol in gold, and $94S, SS6 in silver. The
imports were: Gold, 65,6SS; silver, 500, SIS;
dry goods, $1,2O6,O9O; general merchandise,
$z42S, 5O7.
Total sales of stocks Saturday were so 500
shares. including the following: Chicago.
Burlington & Quincy, 6,1Ol; Manhattan, 1908;
Missouri Pacific. 3,16O; Northern Pacific pre-
ferred. 1900; Rock Island, 1868; ST. Paul,
1885, Bay State Gas, 3,125; Chicago Great
Western, IL $50: Sugar, 1851
The New York weekly bank statement
shows the following changes:
Surplus reserve decrease. ............ S437 975
Leans, increase 476, 500
Specie, increase ........................ 339 800
Legal tenders, increase. S27 OOO
Deposits, increase All 100
Circulation, decrease .................. SO 100
The banks now hold So, 122, $50 in excess
of the requirement of the % 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 reserve
There has been nothing in the general re-
quirements of the money market during the
week to account for the expansion of 49,
476,500 in the loans, and it is probably due
10 borrowing on exchange. This is a 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
it by exchange bills. 1t is estimated that
over 100000 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 it 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 a 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 i'm
ported in anticipation of the tariff law. I'm
less the import movement of general mer-
chaHdse shall become very heavy in the
next few months long exchange must prove
Il poor investment in view of the enormous
outgo of merchandise of the last few
months.
The New York Financier 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 81 300 coo of the six hundred mill
lion mark and deposits are $66S 900, which
Is one-third the total dividend deposits re-
ported by the 800 national banks in the
United States on Oct 5 last. The rapid
Increases made by the banks since May last
Will be understood better when it is stated
that the gain in deposits since that time
has been $50 00G. 000 and in loans more than
SoSVVOOO Comparative figures show that
fifty millions of these increased deposits and
forty millions of the loans have been made
by one bank, which holds at the present
time over S9l, 0G0 of net deposits. The
statement OF the banks Tor the week is IA
Norable- 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
National by the Western National, and the
decrease of s., 21S 800 in the loans and $780,
ut0 in the deposits of the latter institution
rejects 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 $6,S4S.o00, which is larger than the
combined 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 &c.
10000 less than at the end of the previous
week. The gain in cash. according to the
statement was 81 166, 800. but this. too. seems
involved IN special transactions 1t is known
thilt the banks received from the interior
more than two millions in excess of ship
ments but since one bank alone increased
us cash $5,SOO,OO0 and the gains made by
the large majority of the banks has de-
creased reserves. Ire statement, taken as
whole, pIoT6s tie banks TO be in strong
condition The Ian ger institutions are buy
Ing sterling bills, and as the Union Pacific
ue3l has been announced without the first
susgesuon Of disturbance, the outlook is
AoI cheap money for some time to come"
, saturdays New York stock market was
IsIt almost entirely to the room traders and
they seemed disposed to depress prices dur
ing the early part Of the session by short
salss. Their effort met with little response
ana 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
Few special cases Manhattan reflected
me anxiety OF those who had bought Fri