The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-09-25

The banks now hold $S252, 875 in excess of
the requirements of the % per cent. rule
The New York Financier says: whether
the actual condition of the New York banks
at the close of the week is shown in the
current statement is a matter of doubt, but
the exhibit is even more favorable than had
been anticipated so far as percentages of
reserves are concerned. Several factors of
Importance which developed within the past
few days Influenced the totals. The first of
the gold imports have been added to specie
account. the losses to the treasury were
very much less than have been reported of
late, and the interior movement continues
light. BY contracting their loans the banks
have been able to reduce their deposits,
thereby bringing down the reserve require
ments and apparently adding to the cash
on hand, In this manner the reserve excess
was increased no less than S4O12.475 of
when $l,lo5,SOO came from a gain in specie
and legalS and 81, S2S,575 from the lessened
z0-per-cent. requirement, due TO the con-
traction OF $n,3l43O0 III deposits. AS a re-
suit OF these changes the surplus reserve
pare as untaVoraDly with the average re-
serve for this season in other years as
might be imagined The strain on the banks
incident TO the settlement of the bond trans
actions is probably at an end, and the heavy
1quldaton, which decreased loans $50, 0O0,0 900
0uIlhs the month or September, will give
way to a more moderate adjustment 1t be-
gins TO look as If the New York banks will
crop money Eighty millions of treasu ipv
deposits widely distributed are important in
TINS connection Banks here having heavy
country business show a large falling off
in deposits. but redscounting is said to be
small: The recent stringency has developed
increase of $507. 400 for the week based on
new 3-per-cent. bonds, taken out prin-
tail shows that the heavier changes in to-
tails were made by a few of the larger
banks, but decreases were the rule through
the list of sixty-five institutions
Total sales of stocks. 15l. 500 shares includ-
ing 9,lA Northern Pacific, 1850 Union Pa
cltic. IL, 325 st. Paul, 1922 Union Pacific pre-
16, $50 Sugar and 1000 Rubber.
Speculation was inclined to wait on the
bank statement Saturday and there was
much doubt concerning what the showing
would be. The realizing movement in the
that the return Is not regarded as altogether
favorable in spite of the rise of the net sur
Plus reserve of $4,Ol2,4s5 The increase in
cash was less that $l.2O0.000 and the remain
der of the increase in surplus was due to a
reduction of reserve requirements by a fall
of $11, 5I4 300 in the deposits a reflection from
the contraction of loans of S11, lO2 400 1t was
believed by some people that last week
heavy decrease of over 600 in loans
was due in some way to the mysterious sys-
tenn OF averages used by the banks But i'm
that event there should have beeen some
bookkeeping compensation in yesterdays
statement 1t is certain that there has been
such drastic contraction of open market
loans. either last week or the week before
as indicated by the face of the statement.
The more probable explanati ton is that adj
vanced in this review last week., namely
that the liquidated loans are largely. those
made to outside banks to finance subscrip-
tions TO the government loan. The delivery
or bonds by the government has been de-
layed. but is now progressing more rapidly
and the loans are liqudated with the deliv-
cry of the bonds. The bank returns Indicate
otherwise the turn in the money market
towards greater case. The stock market
showed quiet but large absorption of rail-
road stocks, notably of the Pacifics and
grangeTs on the traffic returns OF these
roads. There We're noteworthy movements
also in the preferred stocks of Pittsburg
Columbus Cincinnati e. St. Louis, Evans
Vile & Terre Haute, Cleveland, Lorain &
Wheeling and Duluth, South Shore a At
lantic The miscellaneous list showed
tendency to reaction. which was checked by
the hrmness OF the railroad list until the
realizing movement on the bank statement
Wheeling & Like Erie consols fives rose 21s
per cent, making the net rise for the
week Sz per cent. The expectation
was quite general that the upward
movement Of prices on the Stock Exchange
would be resumed tliis week and that the