The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-10-03
BANKERS NOT ALARMED
NEW YORK RESERVES REMAIN
SAFELY ABOVE THE LIMIT.
stocks Once More Showing strength
After "a Two Weeks Reaction-Lo-
cal Markets Active and Firm.


Prime mercantile paper, 41aq5 per cent
Sterling exchange was weak, with actual
business in bankers bills at 81. S412d4 S4s4
for demand and S4S2l5 for sixty days; post
ed rates, $.S3Q48 and $4S515q4.S6; COM
mercial bills, S4.S1
Bar silver, 5611c; Mexican dollars, 43c;
silver certificates 55c. At London bar sill
yer closed steady at 2614d an ounce.
Exports of specie from New York for the
week were 1888 1876, of which O,940 were of
gold. Imports OF specie for the week, ST.
1OS,294, of which $1,O19, 2S1 were of gold I'M
ports of dry goods and general merchandise
for the week were IS, Isl, 0S6.
The New York weekly bank statement
shows:
Surplus reserve, decrease. conn. $447 100
Loans, decrease ............. 4,592, 600
specie, increase ...................,... $4,000
Legal tenders. decrease. s..s........ 2, 442, 800
Deposits, decrease ................... .0U2, $40
Circulation, increase ......-.......... 321, 900
The banks now hold SIS $50, 400 in excess
of legal requirements.
The New York Financier says: ''rht
statement of the associated banks of New
York city for the week ending Oct. is proof
that there is no occasion for the fears en-
tertained earlier in the season of an actual
stringency in the money market. Despite
the steady decline on the banks by reason
reserves are maintained at a secure point
and the natural effect of conditions which
nave been making all season may be trust
cd 10 obViate any departure from this stand
ard IN the future. The liquidation in loans
continues, the loss for the week bringing
the total to an amount of $500 200 under
that reported three weeks ago. In the same
time deposits have fallen OFT $l76U5.300 while
the reserve has decreased about 81, 0J0 0J0.
AS money has been flowing to the interior
at the rate of $4000,000 $5,O00000 weekly
during this time it will be seen that the
banks have STOOD the drain very easily. The
demand Tor funds still continues. though in
lessened volume than reported for several
weeks past. The decrease in deposits for
the past week, of course lowered the re-
serve requirements appreclably. The 81, 10000
Boid received from Europe by one OF the
banks does not seem to ngure in the cur
rent statement. The deposit changes of the
larger banks have been unusually heavy
during the week, the institutions having the
largest number OF correspondents reporting
losses as a rule, although others, which
inquire in the call market, nave been affected
by the general liquidation. The October set
Elements have brought about some shifting
of funds, but the disbursements now being
mace Will be SHOWN 10 greater extent IN
the next statement. The Union Pacific fore
closure sale, under arrangements which
have been completed for payments extend
ing over a considerable period, will not
cause the contraction first anticipated and
this assurance to some extent governed the
rate quotations last week. The statement
as whole is of very favorable character,
and with the certainty that gold imports will
follow any unexpected advance in money
the outlook is even brighter than predicted.
Three of the New York banks last week
made their clearing house settlements in
gold, owing to the scarcity of legal tenders
1t would not be strange, in fact, We're the
treasury to follow suit in this particular
before the close of the year
Total sales of stocks were 222, 700 shares,
including the following: Atchison preferred,
$500; Chesapeake & Ohio, 4355; Chicago,
Burlington q Quincy 7,12; Erie new,
1900; Louisville & Nashville, $780, Manhat-
L n.rpf nysGa * Man
York Central 1861; Northern Pacific pre-
ferreG, 1913; Reading, 3,401; Rock Island,
1908; St. Paul, 17l25; St. Paul & Omaha,
$3.50; Southern Railway preferred, 4,250;
Union Pacific, 1850; Chicago Gas, 15,G60;
Sugar. 23,590; Tennessee Coal and Iron, 4,S35;
Western Union, 4,7O5; Chicago Great West
ern, 1850.
FIRST STRENGTH IN STOCKS.
Marked strength in stocks on New York
Change which developed in the late trading
Friday was resumed Saturday morning in
full force and continued with only one mo-
mentary pause from the opening until the
close of the short session. The buying was
eager and the covering of short contracts
put out during the two weeks reaction in
the market appeared to be urgent. There
was every indication that the reaction had
run its course and the agents employed by
the leaders Of the former bull campaign
were buyers on a large scale. The stocks
Gently were foremost in the recovery. Prices
of Americans were advanced in London be-
fore the opening at New York and arDitrage
brokers bought for London account. The
stocks which were faVorites in the London
buying were those that have recently SUI
fered most severely from the liquidation of
foreign holders, rejecting a marked change
in foreign sentiment. The various trade
reviews published this morning ali report
ing continued Improvement in trade and in
industries, and the additional state
ments of railway earnings showing
increases contributed to the desire
to buy. An additional fall in the rate of
sterling exchange of 5sc for dividend bills
to $4.S4la made it evident that additional
gold imports cannot be long delayed and
probably helped the market though gold is
SO plentiful in New York at present that
some of the banks are settling their daily
balances at the clearing house in that
metal. The weekly statement of the clear
ing-house banks was also interpreted favor
ably The statement clearly reflected the
pains the banks have taken to prevent
further heavy shrinkage in their surplus
reserves. The withdrawal in deposits of
1902 500 is partially offset by a contraction
in loans of 81 592. coo, making a total con-
traction for two weeks of 1890, 800. The
withdrawal of deposits find additional
reflection in the decrease in legal tenders
OF 81 Az. 800. which was offset by net in
crease of 1855, 500 in specie, so that the ac-
tual decrease in cash was only about $3.50.
OO0. The more profitable rates for money
have induced an increase in circulation of
$S21, 600. There is no doubt that Withdrawals
OF deposits would have been much larger had
it not been for falling off IN the demand
for currency shipments to the South, due
to the interference with the movement of
the cotton crop due to the yellow fever
quarantineS. The decrease to the South has
been offset by demand from the Eastern
and Middle States to meet October interest
and dividend payments, and by New York
requirements for payments of taxes. Sat
urday's net gains in prices of stocks ran
from l to per cent, the advance Being in
full tide when the market closed The
stock market has been highly technical and
professional in its character ali Week, and
the reaction which was the feature of the
week before continued up TO late en- Fri
day The bears have been masters Of the
situation. and there has been no aggressive
effort in opposition to their successful at
tempt to beat down prices until Saturday.
The large buying interest which was so
potent a force during the prolonged period
of the rise which eliminated two weeks
ago had apparently ceased operations, and
the brokers who had come to be recognized
as the instrument of this important inter-
est occupied passive attitude. apparently
content to see the reaction take its course
Gossip has been busy with the question of
the identity of the powerful pool which
led the bull market with so much dash and
confidence and syndicates of bankers and
of powerful corporations have been men
toned as identified with the movement
HOW THE POOL WORKED.
But, whatever their identity. the fact is
now obvious that, before any evidence was
a..