The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-05-02

A-AAAAANI I'M g. |A'~1 Az CA ~ AAA N0ISB
posted rates. $4.S1kG4.s2 and $4.S5Q4S5h;
commercial bills, @.S0a4SO1z.
Silver certificates, $1,000 ounces sold at
5715657Ac, closed at 571aq5Sc; bar silver,
b6Bc; Mexican dollars. 45Ac. At London
bar silver closed steady at &c 5-16d an
ounce.
The gold and silver movement at New
York for the week ending Saturday was:
Exports Of gold, $123,15 of silver. $676,9SS
imports of gold, $9,O16, $50; of silver, $96,01S.
The imports of dry goods and general mer-
chandise, IS, sos, 066.
The New York weekly bank statement
shows the following changes:
Surplus reserve, increase ........... $979.5lS
Loans, increase 5' a49' y
Specie, increase a'S1o'eUW0
Legal tenders, decrease ............. 2,6l4,5W
Deposits, decrease .................. z, l13,yW
Circulation, increase .............s... I4,5OO
The banks now hold $44, 5O4, 675 in excess
Of the requirement Of the % per cent. rule.
The New York F1nancier says: 'The bank
statement for the week ending April 80
presents no features of interest beyond the
continued gain shown in the surplus re-
serve, which now approximates $4, 10000
On Feb. % the reserve of the Clearing
house Association consisted of $50. O76. 900 le-
gals and S119, 186,OO0 specie, a total of $685.
2S2, 900. On April 80 the cash holdings were
made up of $15S, 592, 800 specie and $50, 7S7, 200
legaIs, or a total of $209, 100, 500. In a period
Of but little over two months, therefore, the
banks have lost $35, S39, GOO legal tenders and
gained $39, 2O6, 600 in gold. Their total cash
holdings are 81, 600 heavier than at the
close of February, but in the same time
they have decreased their loans 81, $50, 900
and their deposits $40, III 900. This will give
an idea of the general liquidation that has
been in progress for sixty days. The con-
version OF sterling bills into gold imports
accounts in large part for the loss In loans.
The decrease IN deposits has been infiu-
enced by the demands of interior institu-
tiOns. The loss in loans and deposits al
most counterbalance, but the reserve re-
quirements of the banks have been reduced
100000 so what with but 100000 more
cash on hand than reported sixty days ago
the surplus holdings are over $21, 900 600
greater. In other words, the excess reserve
s. nov $44, 5O4,0O0. Sixty days ago it was
S22,9 $50, 325.
GOVERNMENT LOAN TALK.
THE issue of a government loan will
largely reduce this amount, but it will not
necessarily require a further contraction of
the several important items of the banks.
Up to the present time the New York in
situations have been taking care of their
customers, but the amount of new business
has been almost nothing. Just what per-
centages Of reserve the interior banks are
now carrying is not known, but that they
are unusually heavy admits of no doubt.
The logical trend, until the new bonds are
issued VIII be towards an easier market
Tor money. This conclusion finds a basis
in the fact that the country is recovering
from It's fear Of possible consequences of
war, and also in the tendency of the banks
10 take out new circulation. The increase
IN that item during the present month by
the New York banks has been no less than
$4,000. The decline in the price of bonds
ana the hlgh rates for money have been the
Inducements which have led to this increase.
FroodbIy a talr percentage of the new bonds
will be used by the banks for the same pur-
pose, but only in case rates remain firm"
Total sales of stocks Saturday, 166, 500,
Including: Chicago, Burlington & Quincy,
1890; Louisville & Nashville, $40; Man.
haitian. $,525; Metropolitan, 3,406; Northern
$3.50; Rock Island, 6,97; 81. Paul, Il, 260;
Union Pacific, Denver & Gulf preferred,
Ihere was quite an extensive taking of
profits Saturday, after the three days adj
Tances in prices. TIL realizing sales
clipped something of the days extreme ad-
Xances. leaving net gains in the railroad
list, mostly fractional. In some of the spe-
~cislties, notably Sugar, there remained over
& point of net gain. The bull leaders in the
morning had to face the sentimental effect
OF early declines for Americans in London,
extending TO nearly a point in some cases.
ms meant lhat any advance in prices
would have to carry the burden of arbitrage
sales. Prices were. however, bid up at
every appearance of confidence, and the Of
ferings of the arbitrage brokers were
quickly absorbed. Sugar mounted nearly
four points, and the other leading Specula-
tive stocks a point or over. The safe arri-
val OF the steamship Paris was adduced as
a bull argument, and there were vague ru-
mors circulated that private information
had been received in the street that the
United States squadron had already fought
a successful engagement off the Philip
pines. The aggressive leadership of the big
bulls, coupled with these rumors, kindIed
traders followed the lead of the big ones.
Quite a fair amount of commission house
buying was also done. But while business
was still active and on a large scale stocks
sufficient to feed the demand and prices
ceased 10 advance. and before long COM
Inenced a retrOSrade movement. Before the
reaction had proceeded far the supply
ceased Meantime a handsome total Of
stocks had been marketed at the advance,
and sellers felt the comfortable assurance
thdJ their paper profits had been turned into
cash IN the event OF an unfavorable turn,
IN any event, over Sunday. There was
some renewal of the buying demand in the
second hour, but it did not reach large pro-
portions, and the recoveries in prices after
the reaction were not important.
THE WEEK ON CHANGE.
The market for stocks and bonds in the
early days Of the week was the dullest and
narrowest that has been seen for years. On
Wednesday the aggregate sales of all stocks
eel TO less than $1,000 shares. In so dull a.
market there is usually a natural tendency
o. prices to sag. But there was a marked
disposition in the market to resist any down
AaAQ lSAQeIlCy, Oue TO the conditional Or
ders in brokers' Offices to buy stocks in ON
any sharp decline. The hardness of prices
encouraged a powerful coterie of profess
eional operators to enter the market for
9 bull turn. They commenced operations on
Thursday. The arguments they offered 20
Justify the advance were that a naval vic
tory by the United States squadron off the
Philippines was reasonably certain and the
ehelling OF the Spanish works at MatanZas
had conclusively demonstrated the skill and
superiority Of United States gunners and
guns. Both of these factors. it was argued,
give potent promise of early success for the
United States arms. There were other and
deeper lying considerations to invite an adj
vance in prices, but the general public
showed no signs of a purpose TO put their
money into the stock market under the ag-
gressive leadership developed by the buu
coterie. Some following was induced by this
leadership, both among room traders and
among commission house customers.
Whether the profit taking marks the term
ination Of the campaign by the big bulls
Goes not appear OF the surface, Undoubted-
ly the underlying cause Of the recovery in
prices is the more assured condition in the
money market and the improved business
eituation. The future Of the money market
has hinged for some time on the needs OF
the government for a war loan. The con-
8ultation Of the secretary of the treasury
with a number or leading hnanciers served
90 clear the situation. The success OF the
proposed loan at 3 per cent. was felt TO
be assured and the plans for dis