The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-02-08


at $500. 766. of which $54,591 was gold.
The New York weekly bank statement
shows the following changes:
Reserve, decrease. 81 Sos, 200
Loans, increase. I, S4I, 900
specie, decrease. -...........-.......-. 1900
Legal tender, decrease. 3,0l5,6JO
Deposits, increase. Observation-Disclosures. 3 $50. 900
Circulation, decrease. ,324, 0O0
The banks now hold $54,5iOO50 in excess
OF the requirements of the p per cent.
rule
The New York Financier says: 1.-The
statement OF the clearing house banks of
New York for the week ending Feb. was
OF an unusually favorable character how
ing, as 1t did. an unexpected increase in
loans. after several weeks steady decrease
IN this Item on JAN 20 the loans of the
New York banks were $491, 10000, which
represented a gain OF about $40. OO0, 900 from
the lowest point recorded, Nov. Z. The loan
total. according TO the current statement
Is si9I, 1880. The gain for the week, there
lore, seems all the more surprising. The
only reason for the gain seems to be the
employment of a large volume of money
being used in the reorganization and trans
fer OF several OF the Northwestern and
Pacific roads. These operations call for
great sums or money, and New York Of
Tered the most advantageous market in this
connection The other items in the state
ment reveal che effect of the heavy loan
expansion The banks increase their de-
posts and decrease their cash holdings
making the total change in these two
items or SS,S30OOO, which corresponds close
~ with the loan expansion. 1t is noticeable
that the circulation of the banks shrunk
sharply, bringing the total circulation down
TO Sl6,Isl.c 900. decrease of nearly stGc0.G 600
since October. As this circulation has been
retired largely within the past four weeks
the decrease In cash holdings may be due
in part to the deposit of legals with the
treasury to retire the bank notes The re-
ceipts Of currency for the past week have
been slack and the decrease in the availa-
pc casn held by the New York banks
makes the question of rates of money an
interesting one. 1t does not seem probab le
that current decrease will have anything
Ike permanent influence on current rates
the outcome depending largely on the dis
position OF the funds withdrawn. The cash
reserve of the banks is still 1896. $50 800 and
the excess reserve does not indicate either
pressing demand for money or an in
centive to higher rates"
DEALINGS ON SMALL SCALE.
The total sales of stocks Saturday were
$1,000 shares. including: American Sugar.
H.i0O: Louisville e. Nashville, $780, North
ern Pacific, $500.
There was little of Importance in the
transactions on New York Stock Exchange
Saturday. the dealings being on small
scale and the fluctuations of prices being
within narrow limits. closing weak. The
market has proved dull throughout the
week, In spite of the hopes entertained at
the beginning of revival in trade Sat
urdayS opening proved irregular but gen.
orally heavy under much the same infiu-
ences Friday. A feeling of uneasiness
centered about the industrial shares un-
doubtedly due TO the proceedings OF the
legislative trust investigation in New York
city In the railway list also the publication
OF some disappointing traffic statements of
the Southwestern lines exerted a depress-
ing influence with st. Louis Southwestern
Louisville a Nashville and Southern pre-
ferred leading the decline. The ndustrials
found fairly good support. but figured
less prominently in the dealings than Fri
day. IL was only in the final hour that the
stock exhibited any decided tone and then
the professional traders started to cover ex-
tensively in the industrials. In consequence
sugar. Leather preferred and American
Spirits, both common and preferred. i'm
proved on an average OF about a point. A
prominence. doubtless influenced by the ex-
cellent showing Of the weekly bank state
ment. presenting a loss in surplus reserve
OF A6Os.2oO. an increase in loans of
Ss,747.OO0. and in deposits of $3.50 600
The market showed more activity in the
rally, and left off generally firm The week
thus closed presented only one feature of
any special interest or Importance This
was the development of the new holdings in
nuence secured in the Oregon Railway and
Navigation Company by the Northern Pa
chic. the Great Northern and Union Pa
chic Railroads. The transactions in North
ern Pacific common and preferred stock
and in the securities of this company
were heavy both in this market and in
foreign markets and gratifying effect as
indicating revival of interest of a reorgan-
lied company and combination of inter-
l.
cerned could not be viewed compiacentIv
by everyone interested i'm financial affairs
with the money thus invested i'm American
property by continental capitalists repre-
senting good round amount. u was cx-
pected that this transaction would have an
effect on exchange rates. but TO apprecia BILE
effect has been noted The lowering f the
rate of discount by the Bank of England to
per cent was also expected to prove a
FACTOR In the exchange market. 1t is
thought possible that payments for North
ern Pacific securities may come cut later
or IL as has already appeared seems TO
have been absorbed without difficulty
There is no doubt. also. that the fact that
London sold American shares during the
week has had its effect IN ofse;ting the
obligations of continetal buye.s of Ameri-
can securities.
LOWER LONDON DISCOUNT.
The lower discount rate in London, show
ing the abundant supply of money there,
is accepted as favorable feature in the
outlook as providing means for investment
IN American properties. These conditions
in the international exchange situation are
considered TO provide measurable security
against the export of gold in the immediate
future. The foreign demand for railroad
bonds during the week has been coincident
with the selling OF stocks. and there has
also been = large European demand for
Northern Pacific bonds in connection with
the transfer OF the stock underwriting syn
extended 10 bonds of various ow-priced
reorganized properties Northern Pacific
general threes and prior-lien fOurs were
largely dealt in. and heavy blocks OF gilt
edged bonds were bought in London and
were also bought in New York for foreign
account. The rates Of money also continue
low and an abundant supply is TO be had
but there IL little appearance OF liz seek
ing its way into the channels Of specula-
ton even investment one os the fea-
lures OF the week also was decline in the
previous very high rate for government
bonds. which Is attributed TO prOit-takings
The advance in the treasury's gold reserve
TO over $lf5.oo0.O0G Is a factor in the soidity
OF the currency situation. The large
amount of money seeking outlet was shown
In the large commissiOn-house buying OF
bonds and Investment securities. The
money market was extremely dull and rates
We're shaded in some Instances even
for the low quoted figures, which
were ~ TO 2 per cent on call
Transactions occurred at 10 ~ per cent
for thirty days 10 eight months Mercan-
tile paper was readily absorbed with the
banks and out of town people well repre-
scented The dearth OF prime names shas
caused more general demand for the lesser
Grades. with quotations ranging IN 10 ih