The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-11-21
THE MONEY SITUATION
ABOUT THE ONLY THING THAT ACTS
AS A STOCK DEPREsSANT.
Speculation Lively and Fluctuations
in shares Continue Wide-Lo-
caI Markets Active.

posted rates, S4S3 and $4.S612; commercial
bills, $4S104S11b
Silver certificates, 6O1z@61c; bar silver,
6Cssc; Mexican dollars, 471sc. At London, bar
silver closed quiet at q 15-16d an ounce
The imports of dry goods and general
merchandise, at New York for the week
ending Saturday, were valued at $1O,39 $40
Exports of gold and silver from New York
to all countries, for the week, aggregated
$S4S, $50 silver bars and coin, and $1,000 gold.
The imports of specie were SOB $50 in gold
and $21 ,SOS silver.
The New York weekly bank statement
shows the following changes:
Surplus reserve, increase ........... 81 $50, 557
Loans, increase .....a................. 59Sl, wv
Specie, increase ...................-. 2,94l go
Legal tenders, increase .............. ,066 200
Deposits increase ACKNOWLEDGEMENTS. 8, 432, 200
Circulation, increase .................. 1872 600
The banks now hold 16,667,375 in excess
of the requirements of the Is per cent. rule.
The New York Financier says: 1.-The ex-
panding volume of loans for the week, as
shown in the statement of the New York
clearing house banks, has fallen about 80
per cent. compared with the averages over
a period of six weeks past. Within the
time named loans have increased nearly
ffty-seven and a half millions, deposits
have expanded seventy-five and a half mill
lions and cash not quite seventeen millions.
The reserve now, however is only
about 100000 less than before these gains
began to be a feature of the weekly state
ments. If the report for the current week
be criterion, the banks seem abundantly
able to care for volume or new business
approximately as large They have increased
their cash holdings since Nov. IL, AM3, $40
and as reserve requirements necessitated by
the expansion of So 432, 900 in deposit do not
call for so much cash the reserve surplus
is g. $4,000 higher than a week ago. 1t had
been expected in view of the sudden revival
since election the loan item would show
heavy addition, but the actual increase was
only $685., 500. The home demands and the
natural rise in rates has probably checked
the buying of investment sterling, winch
has been reported for some weeks. A SHRINK
age in the cash of the New YORK banks
might have led to some liquidation in these
the volume remained at about the present
level. The banks are gaining from the IN
terror and the current treasury dehclts are
adding to their cash resources. sun, II Is
to be noted that the total increase III specie
for the week is accounted Tor largely py
the bank which holds intimate felalonS
with the treasury. There has been more or
less shifting of funds, owing to the partial
completion of several large deals ana heaVy
investment buying.
FUNDS IN NEW YORK BANKS.
Speculation, as has been pointed out
does not mean withdrawal of loanable CAPT.
tai: it merely transfers its ownership.
Whether the return of money from the in
terror which generally begins at this time,
will be as large usual in the face OF ex-
pandng conditions throughout the West, is
an interesting problem. If this money De
added to New York surplus, future pros
poets may be determined accurately. If the
gain is little or nothing, and New YORK
rates rest at par with foreign centers, some
interesting developments in the way of ex-
s ehaage poqts msT be W expeced espy
as commercial bills have been coming Tor
ward rapidly" co. ooo ,
including: Atchison preferred, Il ,645; O., b,
e O.. 1920; D. & r. G. preferred. 5,420; l.. &
N, 1920 Manhattan, 1885; Northern PACIFIC,
ROCK ROCK Island, 5000; u p, 5675 St. Paul, TO-,
SS5; Northern Pacific preferred; l, 10; To,
bacco, 42sO; Federal Steel; Il 49, Fede aoa
Sugar 10. 2O5; Chicago Great Western, 4,S70.
The New York market had the burden of
onening U Saturday morning. The advance
in the rate of discount by the Berlin Bank
from 51A to per cent. had unsettled foreign
listed stocks on this side, Union Pacific
leading the decline with a drop of point.
Pacific also suffered from the speG en-
cific and Oregon Navigation. There was
further sudden collapse of L to points in
the Federal Steel stocks on the reported
failure of the steel interests to pool. Open
ing prices, however, We're the lowest, for
strength quickly developed at points whlch
W. in the weak stocks themselves. Manhat-
tan, Sugar, Peoples Gas and the coalers
all moved upwards. The quick rally in Fed
eraI Steel on the large buying at the decline
conveyed the suggestion that the failure to
agree as reported, might be in a purely
Pickwickian sense, and prompted by the
discreet purpose to observe the letter of the
joint traffic decision of the supreme Court.
The opinion of a. high ofhcer IN the com
pany that there was a disposition to main
tain prices" is contrmatory. In Northern
Pacific. also, it was not only evident tn9t
there was inside absorption of the inside
offerings, but the recovery in prices OF
other roads affected by the d1ssenslon sug-
gested a renewal of efforts to patch IT up
Finally the unexpectedly favorable BANK
statement routed the bears etfectually. or
the &0138 800 increase In cash, not mucn
more than. million can be accounted Tor
by subtreasury operations and the interior
movement. The source of the rest is as
much a mystery as was the sudden decrease
of s. 100000 in the return for Nov. 0.
THE WEEK ON CHANGE
2he continued ease of the money market
during the week in face of the large clear
ing house operations is, however, explained.
Notable strength was shown by Atchison
preferred. Kansas City, Pittsburg & Gulf,
Lake Erie & Western preferred, North
western Omaha, Baltimore & Ohio and a
number of stocks. The stock market has
shown all the variety and irregularity dur
ing the week that are usually characteristic
of a market in which the speculative and
investment public is taking a large part.
A large aggregate of individual small trans
actions breaks the market up into irregu-
larity inevitably and takes it partly out OF
the hands of the professional ciqueS and
pools which are able to manipulate it cas-
lily in time of dullneSS. The interest of the
public was amply manifested by the vol
ume of business coming to the floor of the
exchange houses which have been crowded
with customers all week Apparently many
of these were waiting for a reaction in
prices in order to, get in," and when the
sharp break came on Wednesday the buy
ing from these houses was very heavy and
rallied the market easily and effectually.
Prices have shown a prevailing disposition
to go up, but have been held back at inter-
walls by one or two causes. AT the opening
of the week the sharp fall in surplus cash
and surplus reserve shown by Saturdays
bank statement was a shadow on the spec
ulative mind The known stringent condi-
lions of the Berlin money market and the
measures taken for protection at other
financial centers made 1t doubtful whether
relief could be had promptly by gold i'm
ports in case of local squeeze or without
a sharp competition in discount rates, in
spite of the heavy outstanding balance to
the credit of this country in the worlds
money markets. 1t is highly significant that
the easier condition of money in London
has been brought about partly by
sumption of the holding back of sterling eX-
change bills, coming forward to New York
for grain and cotton, and with money in
New York distinctly working towards
easier basis as the week advanced, even in
face of enormous clearing house operations
There was also some uneasiness early in
the week over the belief that a rupture of
peace negotiations at Paris and a possible
resumption of hostilities with Spain were
imminent.
With the relief from these early misgiv-
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