The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-08-28
SCALPING FOR PROFITS
WEEK OF HEAVY LIQUIDATION ON
THE STOCK EXCHANGE.
Bank Reserves Being Depleted and
Money Rates to Go Up ShOrtIy-Lo-
cal Trade Satisfactory.

At New York, Saturday, money on call
was firm at 2Q215 per cent; last loan, per
cent.
Prime mercantile paper, 334@41s per cent.
Sterling exchange was steady, with actual
business in bankers bills at $4s4a4. s41s for
demand. and %S2A@4S21s for sixty days;
posted rates, $4S412 and $4.S6; commercial
bills. $4.S234.
Silver certificates, 59tzG61c; bar silver, 6Oc
Mexican dollars, 4615c. At London bar silver
closed a 2794d an ounce.
Imports Of dry goods and general mer-
chandise at New York for the week ending
Saturday were valued at $6.S1S, $685. exports
for the week from New York of gold were
$4B,S4; of silver. SlO76,211. Imports of gold
We're $3S9974; of silver $64,224
The New York weekly bank statement
shows the following changes:
Surplus reserve. decrease. 81, 495, $50
Loans, increase OBSERVATION-DISCLOSURES. BIAS 400
specie, decrease ACKNOWLEDGEMENTS. 1904 800
Legal tenders, decrease. 5000
Deposits. decrease Observation-Disclosures. A. 79 400
Circulation. decrease .................. 7S 200
The banks now hold so, SAB 300 in excess
of the requirements of the 25 per cent. rule.
The New York Financier says: 1.-THE
statement of the associated banks of New
York city for the week ending Aug. q shows
a shrinkage in surplus reserve of nearly
seven and d half million dollars, bringing
the excess cash down to $21 ,34S, 300, a de-
crease of $41. O0OO 600 since June %. The state
ment is about what was anticipated, reflect
ing. it does. the operations of the banks
with the treasury on bond account. AS the
settlement has not yet been completed, and
the flow of money from the interior has
practically ceased, and should give place
shortly to a movement in the opposite di-
rection for crop purposes. there seems to be
no doubt that money will harden temper
arily. In fact. indications in this direction
are now plentiful. But whether an advance
in rates will be of long duration is doubtful
The money locked up in the treasury may
be counted a reserve. since it can be made
available through depository banks, and the
prospect of continued gold imports presents
Itself the moment that New York becomes a
profitable field for idle capital due this coun-
Try on balance The interior movement has
really begun and the small balance that
New York banks gained on account during
the week came from nearby cities, One
feature that is causing embarrassment is
the small supply of legal tenders which the
banks hold. their reserves consisting of near
~ 20 per cent. gold. Legals are lower than
since 1898. and the banks need all they hold.
This makes the shipment of gold to the in
terror imperative, and as the operation is
expensive, it is having a retarding effect.
The Treasury Department has been APP
pealed to. some advocating the resumption
OF the issue of gold certificates This has
not met with encouragement, but relief has
been promised in other ways so that crop
money may begin to move rapidly from
now. 1t is a disputed question. however,
whether the West will need as much money
as anticipated for this purpose. Until this
Is definitely known the money market will
ne rather uncertain, although firmer in tone.
The current statement has been influenced
by the operations of few large banks, one
institution reporting nearly the whole loss
m deposits and almost half the loss in cash.
The Stock Exchange transactions are prob
ably responsible for the loan expansion but
mercantile demands are a considerable
Total sales of stock 2S7sOO shares. includ-
Ing 1856 Atchison preferred. 5.Sl2 c., B. &
@, $3.50 Denver & Rio Grande preferred 1880
Louisville & Nashville. $3.50 Manhattan,
2l,S70 Northern Pacific, $3.50 Northern Pacific
preferred, 4.35 Rock Island, 2s.745 Union
Pacinc, l2,s64 81, Paul. $50 Southern pre-
ferred. p $50 Union Pacific preferred. S345
Wabash preferred. 1910 Chicago Great
Western. l54S Peoples Gas S4.79O Sugar,
The bears manifested considerable conf
dence that a reaction in the prices of stoaks
due Saturday and they sold at the
opening advance and carried prices at one
time materially below Friday nights close.
They had their side a disposition by
many holders 10 take profits But the de-
mand was so considerable as to absorb all
offerings al the decline and the bears were
forced TO cover quite heavily. lifting prices
sharply above the lowest. and in many
cases above Friday night The drop in
Sugar at the opening was an unsettling fac
tor and a determined drive against Peoples
Gas finally knocked OFF IL per cent. from
the price of that stock. 1t was evident also
that there was an abundant supply of stock
OF the grangers and Northern Pacific TO be
had onsany considerable advance in prices.
The opening high prices were partly ma
nipulated for purposes of realizing. prices of
Americans having been advanced in London
by cabled orders from New York. "A number
Of prominent stocks showed vigorous re-
sistance to the declining market and were
potent factors IN effecting the rally. Most
conspicuous of these were the Union Pa
ciiies. The common rose ~ on the opening
demand. and sold down nearly q point on
the reaction. The recovery carried 1t up an
extreme rs per cent. The preferred stock
was nrm above the previous nights figures