The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-10-24

and All essional-1nd ustrials Make
the Market Principally, Railways Being
Neglected-The Financial situation
With Reference to the Relations of New
York Banks With the Interior-Bonds
Better Than stocks-Bank Statement
New York. Oct. 23--Today's security
market was intensely dull throughout. The
only business done was by professional ira
| ders, and this included some sellisg for
foreign account. Some OF the selling rep
resented the placing CT short contracts by
bear traders who argued that the danger
| OF the Cuban question, leading to strained
relations with Spain, indicated that prices
| would decline. The Sunday interval before
trading VIII be resumed made these re-
operators cautious in their ventures for
| fear of developments that might change
the situation before Monday. The dspo-
sition to restrict operations for short turns
was very obvious and the only movement.
! of prices seemed to be due to professional
| manipulation. The total sales were less
| than 5000 shares, figure lower than for
| any Saturday n months. The greater
| part OF these sales were of shares OF in
| dustrial specialties, the railway list being
| decidedly neglected. Some firmness was
| manifest in the granger shares on the the
Cry that they Will benefit from favora-
| bic decision in the Nebraska max. mum
freight rate case, which is expected from
| tie supreme court on Monday-that is 20
| say. decision denying the right of the
| state Of Nebraska to fix maximum freight
| charges by the railways. Sugar display
G 0cy-1 dtrrfr he a
| closed with small net gain. Chicago Gas
and Union Pacific were the only stocks
traded in to the extent OF more than TO-
000shares. The latter was weak on the
doubt case upon the success of the reor-
ganizat.on plan by talk of an opposition
syndicate, which continues TO be talked
of in an ill-defined way. Net losses were
general, but reached a point or over in
only a few cases.
THE FINANCIAL SITUATION.
The increase of the surplus reserve of
the banks. of s., 290. 200 even with the legal
reserve point raised by an increase in de-
posts, was not counted a favorable fac
tor n the stock market, though IL nat
uraly tends to ease in the money market
and TO strengthen the position of banks
technically. The increase in the holdings
of actual cash was sS,626 900, the gold ar
irving from Europe last Friday and Sat-
urday being included. The liquidation OF
loans in face of this easy condition reach
ed the large total of se.9i1, 600. This was
in large part due to the buyisg of COM
mercial paper in this market by western
banks, choice single-named short paper
having been placed with a Chicago bank
during the week a. 324 per cent, according
to a prominent authority. Numerous 9TH
er western centers have offered money in
New York and their deposits are report
ed to be high on account of large pay
ments of Indebtedness by farmers and west
ern business men who have realized on
the grain crop. The quick movement OF
the grain crop has led to an early cessation
of demand for funds for that purpose and
the interruption of the movement of the
cotton crop defers the demand from that
quarter The release of funds in Mex York
as a consequence of this condition, has
led to a marked easing Of the money mar
ket, call loans tsyeerday and today being
offered in abundance at per cent and
IN same cases below that The money mar
ket is almost plethoric, and the falling off
for funds IS not looked upon in Wall street !
as an altogether favorable indication OF
the progress OF business. 1t is reported |
that a movement is on foot among New
York banks to reduce the interest that !
they pay on balances of out-of-town banks |
from per cent to II. per cent. This con- |
dit!on of the domestic money market Is |
coupled with something very like stringen- !
cy in the Berlin money market, owing to |
keen activity in business and to a stiffen- |
ing of rates in the London market as a |
result of efforts by the Bank of England |
to prevent gold from coming TO the Uni |
ted States. These efforts consisted of rails |
ing the price of gold bars and of Ameri- |
can eagles and Of borrowing largely. with |
view to bringing up the open market |
rate of discount to a parity with that of
the bank, which remains at per cent. |
The open market rate in London yesterday
and today had about reached that point,
and It is reported that applications for
loans are making to the bank itself The
London rate of discount has crossed the
New York rate. and the disparity tends to
increase, so that the present movement OF
gold has come TO a stop. in spite of the
heavy trade balance in favor OF this coun-
try. Exchange is being allowed TO accu-
mulate at this center. Exchange bankers
sell demand sterling for future account at
a rate which makes it profitable to buy )
these futures and borrow money on long
sterling bills as collateral until they ma
ture. The effect is the same as though
gold due to creditors in this country were
placed at higher interest in London, m
stead of the balance OF trade 10 Shift again
later in the season. The greater ease in
money has notresulted n any increase in
speculation in the stock market, the I'M
DERIVING sentiment being that general bus
mess has not fully held its own with The
first Improvement.
Railroad earnings continue large, but 4
some question has begun TO arise whether
general traffic will keep up earnings af-
ter the grain movements and the arrear-
ages of soft coal traffic have subsidei |
Some speculative activity has been shift
ed 10 the wheat market with the fresh
advance there.
The total salesofstockstod ay were ST.
so shares.
THE WEEK REVIEWED.
The rise in stocks early In the week
seems TO be largely due 10 covering OF
shorts. and the latter days have seen re-
action due 20 pTofit-tak.ng and renewed
short selling. The market has been dull
and professional throughout London was
a buyer e3rly in the week. The advance
at the high point ranged from 3 10
points IN the leading active stocks. bu:
the later reaction has left The net changes
Pullman. which fell almost
points on the announcement OF the death
OF the death OF the head OF the company.
shows only small net change Sugar
has risen over 5 points. Otherwise net
gains OF over points are intrequent
BONDS
Bonds have been moderately active and
have held their advances more firmly than
stocks, gains ranging I'd 70 Der cent |