The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-07-24
CASH RESERVE REDUCED
CONDITION OF BANKS DUE TO THE
NEW WAR LOAN PAYMENTS.
New York stock Market Almost Stag
nant, with Foreigners Only Bid
ders-LOcal Trade Quiet.

At New York, Saturday, money on call
was steady at 1Q115 per cent; last loan, III
per cent.
Prime mercantile paper, S34q4 per cent.
Sterling exchange was steady, with actual
business in bankers bills at S4S5144 "a. S51s for
demand, and at $4S4q4.s41z for sixty days;
posted rates, $4.S5 and $4.S61a; commercial
bills, $4.S3s4.
Silver certificates. 5SXG5sAc; bar silver,
5924c; Mexican dollars, 4524c. At London
bar silver closed at 27ssd an ounce.
The imports of dry goods and general
merchandise at New York for the week,
were $7,OC0.552. The gold and silver move
ment at New York for the week was: Ex-
ports of gold. $lS4SO; silver, $7O6, 1S2: imports
of gold, $S9.967; silver. $5S,669
The weekly bank statement shows the fol-
lowing changes:
Surplus, reserve, decrease ..... $685., S25
LOdns, decrease ................. 4O79 GOO
Legal tenders, decrease ......... LAB 300
DepoSltS, decrease .................. 16 45O, 200
CilculauOil' Increase ................ 1U4 800
The banks now hold $4S,012.OO0 in excess of
the requirements of the Is per cent. rule.
The New York Financier says of the
weekly bank statement: Since July the
clearing house banks of New York city have
In the same period, which embraces only
three weeks, they have increased their loans
$l4,O0O,OOO and their deposits have fallen off
about 100000. The cash reductions have
been due altogether to operations with the
treasury, since the movement of the interior
stun continues. The statement. therefore
SHOWS the ehect of financing the new loan
ana as the treasury has received in cash for
small subscriptions, nearly, or quite half the
amount OF the entire loan, there seems to be
no cause tor further disturbance in the
money market. The remaining allotments
OF $lOO,OOO.000 will probably be financed by
extending payments over a considerable
period, the treasury deficits on one hand
CounJeracting the receipts of the new bonds
In the meantime the designation OF certain
banks as depositary for government funds,
Will prevent them locking up a large
amount OF cash in the treasury. OF course,
II all the remaining subscriptions We're paid
IN one sum, the effect might temporarily
lghten the money market, but this is not
anticipated. The current statement shows
the hrSt decrease in loans since the first
week IN May. The loss appears to be dis
tributed well throughout the list in small
amounts and reflects probably LIQUIDATION
of mercantile accounts The market for
commercial paper at present is very mac
tive, new business being less than expiring
maturitieS. The rediScounting season is
now close at hand, but bankers report the
demand as yet very light, with indications
pointing 10 a smaller movement than usual,
owing TO the abundant cash resources of
interior banks. Sterling exchange is moving
oownw ard This is significant in view of
the coming fall exports of grain, as any
considerable demand for money will surely
bring about the payment OF international
balances, which otherwise might be ex-
tended by means that have become familiar
during the past year But temporary move
ments aside, the country will have cheap
money rates until active use is found for
the heavy additions which have been made
TO its currency since 1896.
Total sales of stocks So, 100 shares, includ-
ing 3,4S0, Chicago, Burlington a Quincy,
1850 Northern Pacific, 2O44 Northern Pa
ellle preferred. 800 st Paul, $3.50 Union
Great Western, $3.50 Sugar and BITS Rubber.
DULL STOCK MARKET.
The dullness of the New York stock mar
ket, Saturday. was not relieved in the clos
ing hours of the week, though there were
one or two incidents of interest in the days
trading. One was the buying for London
account. This was not large, but it was
influential, and was pretty well distributed
through the international lists. Later the
local traders took the market away from
the foreigners and bid up the prices of the
Pacific Railway stock. This movement
grew out of the consultations reported as
having taken place between the executive
of the Canadian Pacific, and the Great
Northern and the resulting rIImors that the
long-drawn dispute over transcontinental
passenger rates had been adjusted. The
buying by London in face of the downward
tendency of sterling exchange, which is
already within measurable distance of the
gold-importing point, was rather unexpect-
ed. Money continued easy in London, but it
showed itself sensitive to demands for gold.
The present ease in exchange is due yet
TO offerings in grain and cotton futures. but
rates are bound to yield further grain
and cotton come forward, and the pressure
on London is likely to lead to borrowing in
New York or an import movement of gold.
There was a fair demand for bonds. but
prices were not well held. There was a
reaction of 3 TO $1.l4 In the price Of the
new government threes when issued" The
bank Statement reflected continued ODera-
tons on account of the government loan.
the decreases in cash being clearly due to
payments Of subscriptions into the sub
treasury. The very heavy decrease in depOs-
Its and the contraction in loans are not so
easily accounted for. The loan decrease was
pr0bably due 70 operations in government
bonds nv halaLze 1EhlLh ha..o hald ......z..-..-