The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-09-19
BIG DEMAND FOR MONEY
RESERVE OF NEW YORK BANKS CO.
ING DOWN AT A RAPID RATE.
Feature OF stock Market Was the
GyratiOns of Consolidated Cas-
Local Markets Steady.
At New York. Saturday. money on cali
was nominal at 1alGL21h ner cent

was nominal at 1s4Q2la per cent.
Prime mercantile paper, 4Q412 per cent.
Sterling exchange was dull and steady,
with actual business in bankers bills at
S4.S4%G4.S5 for demand and at $4.S314 S315
for sixty days; posted rates, $4.S3@4S4 and
$4S51sQ4.s61z; commercial bills, s4S11Sq4S2
Bar silver, 57Ac; Mexican dollars, 4Sslc;
silver certificates closed at 57a59c. At Lon
don bar silver was steady at 2615d per
ounce.
Exports of specie from the port of New
York for the week amounted to $745S20 in
silver and $7625 in gold. The imports for
the week were: Gold $95,5l5; silver, $SS, Oh;
dry goods and general merchandise, Sc, 49,
613
The New York weekly bank statement
shows the following changes:
Surplus reserve, decrease .... S. 773. $50
Loans, increase OBSERVATION-DISCLOSURES. 2669, 900
Specie, decrease ...................... 34y, $40
Legal tenders, decrease ............ $4,000
Deposits, decrease .................. 619l, 400
Circulation, increase ................. 62l,200
The banks now hold 49, Ses,S75 in excess of
the requirements of the % per cent. rule.
The New York Financier says: THAT
present advancing rates for money are well
justified is shown in the statement of the
associated banks of New York city for the
week ending Sept. 49, There is nothing to
indicate an early cessation of the demand
for funds at interior points. The interior
banks are drawing down their deposits in
New York very rapidly. If the statement
foreshadows anything it is that loaning
rates will be advanced TO higher figure
than prevailing, but this contingency
viii only hasten the time OF golo imports,
with consequent decline in quotations.
That there Viii be any stringency is I'M
probable. The continued expansion in the
stock market confirms this view. For the
first time in their history, perhaps, the
banks now hold over oU per cent. of their
cash in gold coin. AS a result of the fall
crop movement, circulation is expanding
Total sales of stocks were 2so,Ol4 SHARES,
including: Atchison, IL 400; Atchison pre-
ferred, 1890; Chesapeake 81 ONO, 7,a0;
+ Chicago, Burlington az quincy, 1880; Man
haitian, 10, loO; Missouri Paclne, 5000; North
ern Pacific preferred $500; ontario q West
ern 400; keading 1880; Rock Island $500;
st. Paul. $50; Southern Railway preferred.
300; Texas & Pacific, 1910; Union Pacific,
$3.50; bay State Gas, $500; Consolidated
Gas, 1870; Sugar, 5,27O; Western Union, 34C0;
Chicago Great w eStern, 152U.
The feature of the dealings at Satur-
days brief session of the New York Stock
Exchange was the extraordinary gyraIons
of Consolidated Gas stock The stock had
been comparatively steady about 240 since
its jump of 20 points cary in the week but
it took a violent fail of over l6 points from
the opening, and jumped up and down on
the recovery like boiling water in a glass
tube The variations in price on the down
secutlVe sales, ana upon the recovery the
fluctuations jumped over several points at
d time in the most erratic and unstable
manner. The stock closed at $685. net de-
cline of 6. Its eccentric movement served
to unSettle the whole market and discour-
aged trading generally. The market sagged
somewhat. There an undertone of
heaviness il the speculation all day. what
ever strength was apparent being in spots.
The indications supplied by the bank state
ment that rates for money would rise
further in the future served as a check on
speculation and helped the decline in the
nnal hour. Manhattan suffered a sharp de-
cline of "a on the authoritative denial of
any projected transfer to purchase railway
interests and of any projected change in
motive power. The coalerS reacted some
what from yesterdays advance. Delaware
& Hudson rose liz, but losing practically all
the gain. Chicago Great Western mani
tested strength in its August statement
and Burlington was carried above st. Paul
but closed a fraction below. Union Pacific
was under pressure or London selling to
realize after yesterdays heavy buying Bal
timore d Ohio rose a point and reacted and
Baltimore & Ohio Southwestern preferred
rose over points and retained practically
all the gain. Pittsburg. Cincinnati, Chicago
d ST. Louis preferred advanced points and
Lake Erie & Western. preferred u. Wheel
lag q Lake Erie preferred, after declining
nearly a point rallied to above Friday
nights close. Missouri Pacific stocks were
heavy throughout the day. The close
showed prices generally below Friday
nights close.
The confidence of the bears that the long
from time to time during the week. and
short interest has shown itself in SOME
what aggressive mood several times. The
bears were not much encouraged by their
efforts Monday and on Tuesday they were
routed as a result of the sharp fall in ex-
change. and the prediction that gold inn
port movement would Immediately set in
For the rest Of the week the market was
extremely irregular and sharp advances .oc-
Cured in different stocks through the lief
while other leading stocks remained at an
unchanged level There was heavy liquida-
ton in progress and the steadiness with
which the offerings to realize were alb
sorbed is a striking testimony to the con-
Some of the most remarkable of the adj
VanceS have been well retained and fha
level of the market is decidedly higher
than a week ago. Consolidated Gas is the
only one of the stocks advanced that has
had a serious set back The high prices of
many stocks are based on expectations of
increased dividends, but in case is the
prospective Increase in dividend anything
like in proportion to the increase which had
taken place in the prices. There is good
ground for the argument that prices
have advanced 10 a higher level than is
warranted. The argument is made on the
other hand that the rate OF return on in
vestment has reached a permanently lower
basis. The long continued stagnation in
the money market has tended 10 the same
conviction. The bank statement however
gives evidence of the rapid absorption of
idle money by the growing needs OF COM
from the action OF the exchange market
that the expanding balance of trade i'm IA
vor of this country stands as safeguard
against any stringency in our money mar
ket. Net changes for the week In the ma
iority OF leading stocks are small. but q