The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-09-12

New York for the week ending Saturday
aggregated $974,145 in silver bars and coin
and SAT- ,053 in gold.
The New York weekly bank statement
shows the following changes:
Surplus reserve, decrease ............$ ,714,275
S6oaHs' Increase ....................... 6u5,tO0
Legal tenders. decrease. ............ 2424 400
deposits, decrease ................2O 4S7 200
Circulation, increase ................. 67,700
The banks now hold 81, 7O6, IT'S in excess of
the requirements of the % per cent. rule.
The New York Financier says: THE sur
plus reserves of the New York associated
banks are now lower than at any time since
the panic of 1893. Two years ago this month
the surplus dropped to something like
sS2OO,OOO. but call money then was at pro-
hibitive figures, and imports of gold fol-
lowed Immediately. Now, confronted by an
interior demand, which has averaged in
past seasons over 10000. 800 each week, with
the treasury absorbing additional millions
each week on bond payments, and with
business expanding in every direction.
money is loaning at per cent, although
the fact of the matter is that banks have
little, II any, money to loan. The excess
reserve of the New York banks is in the
hands of a few institutions. The banks are
loaned up to and beyond the required limit
in most cases. The statement for the Cur
The treasury took $14 900 from the banks
on bond account and the loss 20 the inte-
riOr was between one and two millions.
The clearing house report makes the less
of cash about $13. 100000 The decrease in
deposits reached the unusually large sum
of $2o.4S!,7O which was due to the cash
contraction noted and the falling off of
$6,77S,7 200 in loans. 1t is to be noted that had
the banks not called in outstanding loans
disappeared The present financial situa-
ton is anomalous The country never had
so much money, but 1t is so distributed that
1t is unavailable for use. and it is needed
now more than ever. The treasury, il as
true, by anticipating interest and maturity
on bonds, is exhausting every resource to
restore TO circulation it's lille funds, bat the
effects of this policy are not yet apparent.
AS the circumstances when have brought
about an unprecedented condition are apt
to continue for some time, additional gold
imports are certain. The banks uD 10 this
time have discouraged the idea of a strin-
gency, in money, but unless some relief is
speedily obtained, it is difficult 10 see how
present rates can long prevail The prem
ised increase in bank circulation is slow in
materializing, and will probably come, as
has been the case N past years. after the
real demand for 1t has passed. AS rnatters
stand to-day a continued contraction in
loans with resultant higher quotations.
Total sales of stocks. 22O1oO shares. in
Guiding: Atchison preferred. 3S4S; Chicago.
BgrlnSton 9nin so IA Maphattag
Northern Pacific, 1850; Northern Pacific
preferred l0,2s0; Rock Island. 4,no; Union
cifc preferred 7,19O: Tobacco. 5SO45; Peo-
pies Gas, Also; Sugar q. $50; Leather pre-
ferred. 1870. and Rubber; 1858
higher Saturday under the impetus of better
prices for Americans in London. The Lon
don advance was apparently manipulated
was met by quite heavy offerings in con-
tinuation of the liquidation of the last few
days forced by the calling of loans. The
M iG cd i'm "a
contraction of $677S,700 in loans shown by
the weekly statement of the. clearing house
York Central showed the largest gains in
the railroad list. the latter on short COW
ering- The advance in Central was lost,
but Northern. Pacific preferred held per-
sistently firm in the reaction after the OPEN
ing. The reaction at the opening invited
some buying. especially in ST. Paul which
ment for the first week in September, show
ing an increase over last years unprece-
trials came more into notice in the second
hour, especially Tobacco, which showed a
violent recovery from Fridays weakness,
rising an extreme points on forced COW
ering of shorts. The news which caused the
advance was not forthcoming, but presum-
ably had to do with the plug tobacco agree
ment, the alleged failure of which caused
yesterdays decline. Sugar. Rubber. Steel
and Wire and Hawaiian Commercial were
also conspicuousy strong.
The continued shrinkage of cash reserves
of New York banks has been the prevailing
factor in the stock market during the week.
The large demands of the treasury on New
York banks for cash in payment of bond
subscriptions are reflected In the heavy de-
creases in all items of the bank statement.
The large decrease of $13.036 200 in the actual
cash balance is more than accounted for by
the diversion OF cash from the banks TO the
has been besides a net movement to the in
terror during the week. The receipts of
gold from Europe have not been sufficient
during the week to make up the discrep-
STATED a contraction in loans of $6.778, 700.
bringing the decrease in deposits to $40,
quirements of $5.122025. There is neverthe-
less a shrinkage in the surplus reserve of
$7914,275, cutting down last weeks surplus
more than half. 1t can hardly be said that
there is any difficulty in obtaining money
for business purposes or any uneasiness re-
gardng the future of the money market
except in purely speculative circles. Not
withstanding the smallness of the surplus
net deposits and total loans are UMPIRE
cedented. They and an extraordinarily
large proportion of the loans are secured
by collateral. The measures promised by
the treasury in anticipating interest on the
per cents. and the redemption of the cur
rency skies will release about 500 600 600 to
the money market. The more rapid dis
tribution of the new bonds also makes them
government loans. The proportion of the
bonds already distributed which de-
post in Washington for this purpose is sur
prisingy small. and the fact suggests that
bankers are little inclined to pay the ex-
porting premium on the bonds to save the
tension OF the money market which brings
higher rates in money.
The condition of the money market has
restricted transactions in bonds as we'll a
in stocks. and prices are generally lower
United States two. the fives and the ole
fours registered, have advanced u. the new
tours y, and the threes. when issued a per
cent. in the bid price
The following table, prepared by L. W
Louis, Room II. Board of Trade, shows the
range of quotations:
Open High Low Clos
Name. ing. est. est ing
Adams Express ITO
American Express .......... -. -. -. $50
American Spirits ........... 49,. -. -. 123l
American Sugar ir.........1s6x 1877 1853 49, So
American Sugar pref. 80. -. 115
American Tobacco ..........137A 1442 1873 1879