The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-09-27
STOCK SPECTATORS WATCHING
NEW YORK BANK STATEMENT.
Reaction on Change set in Early Last
Week-ERect of Gold Imports
Local Business Good.
At New York Saturday money on call

silver certlHcateS, 5o12c. AT LONDON par
silver was weak at 26asd per ounce.
The, New York weekly bank statement
shows the following:
Surplus reserve, increase. ........... $3,S97,6l5
Loans decrease .........-............ zfes'S0 00
Specie, increase ............-.......... b0,4VO
Legal tenders, decrease 65l4, !00
deposits, decrease ...........-...''. 1V'00z' 90V
Circulation, increase ................. $4,000
The banks now hold s15,997,500 in excess
of the requirement of the % per cent. rule.
The Rev York Finaneier says: 1.-The
statement of the New York banks showed,
as had been anticipated. heavy loss in
the cash and a shrinkage of the reserve to
the lowest point recorded since Nov. last.
With gold imports beginning, the impress
sion prevails that the banks will be fully
able to meet all demands made on them.
The advance in the money market was evil
IDENTIFY brought about some liquidation. 1t
is noticeable, however, that the operations
of the Bank of National City account for
the total change in loans. So, also, it's de-
post changes make up at least one-third
of the entire decrease reported by all the
banks. The cash Withdrawn all went to
the interior. The statement does not bal
ance, but the plain Interpretation is that
the demand for money for crop purposes
is at it's full height and may be expected
to continue for some time to come. 1t will
not be surprising if the loan item exhibits
further decreases, in view of the urgent de-
mand from the South and West. The de-
crease in loans for the present week is the
first that has occurred since the opening
week in May, since which time the expan-
sion has reached a total Of $74 0OO0 900.
BELOW THE RESERVE.
Seven of the New York banks are be-
low the 25 per cent. reserve requirement,
and large number of the other institutions
are only slightly above it. The future of
the money market rests largely, of course,
on the extent of gold imports The treas
extent. but against this is the coming
Union Pacific foreclosure sale. which will
take large sum from the open market.
1t is estimated that the foreign trade ball
ance in our favor for the three months end
ing Sept. 80 will not be less than $40 000,-
600, and this with cotton exports only be-
ginning. The resources which the country
can command in case of a sudden hardening
In the money market are thus enormous.
Even with the continued use of funds to
meet the immense expansion of trade at
interior points, the outlook remains cheer
ful for legitimate business enterprises"
Total sales of stocks were 247, $40 shares
including the following: Atchison, 1860
Atchison preferred, 1900; Chesapeake &
Ohio, 1920; Chicago, Burlington & Quincy,
1900; Louisville & Nashville. 1850; Man
haitian. AGO; Missouri Pacific, $500; Mis-
souri,, Kansas & Texas, $3.50; New York
Central, 3,400; Northern Pacific preferred
$500; Reading, 1000; Rock Island, 1880; St
Paul, q 626; st. Paul & Omaha, 1920; South
1870: Union Pacific, 1885, Union Pacific
Denver 81 Gulf ESQ; Wabash preferred.
4.921; Bay State Gas. 972o; Chicago Gas
4270; Sugar, 13, 1872; Tennessee Coal and
from $3.50; Western Union, $3.50; Chicago
There was no large and aggressive element
in the New York stock market Saturday
the reactionists. They were persistent in
seeking for the weak spots in the market
trying to uncover stop-loss orders. This
they succeeded in doing in number of
stocks and accelerated the decline There
were feeble rallies during the day, but the
sagging tendency for the most part was I'M
interrupted Dealings were not on a large
scale, nor were they as widely distributed
as of late. Many stocks showed no move
ment at all during the day. The rise at
the opening in sympathy with London
served to restrict the net declines in the in
ternationai stocks; and LONDON also was
buyer of some stocks during the day. There
was nothing in the general news to cause
recession in prices, and the heaviness of
the market has no other explanation than
the withdrawal of support and the contin-
uance of some offerings to realize profits.
The bears did some short selling in their
efforts to uncover stop-loss orders but there
was no aggressive genera! selling manifest
and much caution was apparent in putting
out short sales Trading halted after II
O'Clock and waited for the bank statement.
The response was not immediate when the
statement appeared showing some hest
fancy about constituting its character An
unfavorable view was finally adopted and
prices drifted downward again. closing i'm
many cases at the lowest of the day In
some stocks, however. there was a final
rally of a fraction. Sugar covered q range
of over 2 points. but closed unchanged.
Omaha lost 2 points. Consolidated Gas 21b
and many other active shares from l to 2
points
of clearing house banks. The condition of
the money market after the weeks develop
ments was looked on as the salient factor in
determining the course of speculation in the
immediate future. The most notable feature
of the statement is the decrease shown in
the deposits of $40, 602 500 The actual loss
in cash was $6,5 300 all in legal tenders.
A statement of specie shows a small net
increase. The heavy decrease in deposits
probably represents the demand from in
terror banks which have had funds on de-
post in New York banks for many months.
The proportion of the Withdrawals ac-
counts for the sudden calling of loans dur
ing the week. which was attributed in spec
ulative circles to concerted effort to
traction in loans is stated AT 81 72S. 800. and
this contraction served to reduce so much
the loss to banks in actual cash and to
save a corresponding additional decrease in
the surplus reserve.
DECREASE IN BANK RESERVE.
The fact that the increase in the surplus
reserve is not as large as expected is due
TO THIS fact. ana also to the fact that the
legal reserve is brought down 81 600, 625 by
the enormous withdrawal of deposits. The
contraction of loans in face of the active
speculative demand prevalent accounts for
the stiffening of money rates and for the
railing or in speculative activity on the
Stock Exchange. 1t demonstrates that the
sudden rise in money rates on Monday aft
ernoon was not a manipu!ative movement
in the bear interest, but was a natural re-
Election of actual conditions. II points TO
a speedy further fall in exchange and to
large additional imports of gold unless the
money rate in London and Paris rises to a
point where il would be more profitable for
creditors here to leave their funds there. 1t
explains also, the action of two of the New
York banks, not usually dealers in eX-
change in engaging gold for import early
In the week in face of the almost unani-
nous opinion of the foreign exchange bank
ers that the option would yield no profit.
The first engagement of gold was made by
the largest of the city banks, and probably
was based ON its knowledge of the condi-
tions operating on the money supply. The
calling and consequent shifting of loans at
higher rates of interest has been the pre-
dominant influence in the stock market,
which has been reactionary all week with
the exception OF one day. The reaction de-
veoped late on Mondady conincident with
the rise in the money rate. and after stocks
had touched the highest price of the year
ture OF the representations made TO Spain
on behalf of the United States in regard TO
Cuba by General Woodford the United
States minister. gave a keen instrument TO
the reactonists, and they used II. together
with the spread Of yellow fever 10 good adj
vantage on Tuesday. On that day lqul-
datior resulted in sales of nearly a million
that OF Wednesday. on the news OF the be-
ginning Of the gold import movement
There Is feeling that the reaction is a