The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-03-06


the requirements of the % per cent. rule.
= The New York Financier says: 1.-THE
statement Of the associated banks of New
York reflects in full the disturbing causes
which have been making fer nearly three
weeks past. The heavy decreases, however,
cover period longer than the seven days
which the totals are supposed to represent.
As was outlined in this analysis last week,
the averages did not include the losses
which the banks were then sustaining
through the shipments to the interior. The
latest statement reveals very clearly the ex-
tent Of this decline. The decrease of $23, 1884,
900 in deposits can be traced through list
of twelve of the larger banks ranging from
$1,O00OOO to 100000 in each instance. The
only inference is that this money has gone
to interior institutions, and this is further
borne out in the fact that New York ex-
change at all important centers has adj
vanced from heavy discount to par, and
in some cases to a substantial premium.
The amount shipped has been more than
sufficient to meet legitimate trade demands.
At the present time the movements seem to
have ceased. Future developments of po-
ntical character must decide whether it is
to be resumed or whether the tide will turn
and the money again flow to New York.
In view of the revelations made public in
the current statement, the heavy gold i'm
ports do not appear at all strange. In fact,
the wonder is that the engagements were
not larger. AS might have been expected,
there has been corresponding reduction in
loans, and the decrease of $13.622,000 is ac-
counted for by the liquidation in speculative
circles. and the calls made in order to
strengthen reserves. The heavy sales of &C
cumulated sterling exchange at this center
are also to be considered in this connection.
But for all that. the banks lost last week
nearly $4,000 900 cash. the reserve reduction
is only $2,135.S25, and the excess is still over
lsOld coming from f,urQD6
will more than make up the loss in reserves
for two weeks. The treasury did not call
pository banks last week. and while Kansas
Pacific payments will require within the
now in banks, it cannot be said that the
outlook faVors anything more than moder
ate firnness in rates. The exchange situa-
ton is SO sensitive that sudden advances
are bound to bring additional imports and
thus restore the equilibrium. If the devel-
opments of the next ten days are such that
plications is assured the money market will
probably weaken; As it IS, rates have
actually declined from the high point
reached early last week"
Total sales of stocks Saturday were 235 500
shares. including: Chicago, Burlington q
Quincy, 11.O25: Louisville & Nashville. 34OO;
Manhattan, 21O62: Metropolitan, 1885, New
York Central. $3.50; Northern Pacific, 1850;
island, lO,4S4 St Paul 1885; Union Pa
cific. 1855; u. p, d. & G., 4,200 Peoples Gas.
5000; Sugar. S4e4o; Western Union. 1863.
IxllUlDAIlNT WAS HEAVY.
Liquidation was resumed with energy on
the Stock Exchange Saturday, and the
short session was long enough to effect
some very striking declines. Large selling
orders were executed for Washington ac-
count, as was the case yesterday. There
was no news to account for this selling, be-
yond a general feeling of apprehension over
the Spanish situation. There were ocea-
afoDal minors of new deVelonuoenfs Sef
afioat. but to a large extent they repre-
scented the guesses OF room traders the
motive of the Washington selling. A rally
I'm the late dealing was In part the result of
covering by the shorts who had sold early
with the appearance OF the bank statement
seemed at variance with the statement,
which was in some respects a dssagreeable
surprise. The contraction in loans, the
falling of in deposits and the increase in
cash were much larger than had been ex-
peeted. The fact that the financial world
had been going through such a trying pc
Rod with so little harm resulting, was ac-
cepted bull card, in view of the under
lying strength of conditions which is thus
demonstrated Nevertheless, the general
list shows marked net declines. extending to
over a point in some cases. Union Pacific
preferred, Northwest and Manhattan were
the special points or weakness. The
grangers were relatively firm. and the coal
ers also showed resistance to the declines
Dealings in Sugar were large, and there
seemed 10 be good support for this stock
AS a measure OF the uneasiness felt by the
financial community over the status of the
statement of New York clearing house
bankes makes a striking exhibit.
There is in 1t evidence Of a great drawing
I'm Of credits and fixing of reserves. The
statement was a surprise II has been
known that the demands of the country for
money for active use have fallen of con-
eiderably, but the statement nevertheless
shows a decrease in cash reserve of nearly
ee.0000o0. That this reflects the withdrawal