The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-09-20
A REACTION IN STOCKS
MARKET STARTED STRONG, BUT
SOON FELL. UNDER BEAR ATTACKS.
Money Market Attracting More Atten-
ton than Shares in Wall Street
Local Trade Active.

At New York yesterday money on call firm
at 4G41s per cent; last loan. per cent.
Prime mercantile paper. 495 per cent
Sterling exchange steady with actual busi-
ness in bankers bills at $.SsA@4.A for demand
and at $4s1A@4s2z for sixty days; posted rates,
s4.SSl2 and $4.S51s; commercial bills, s4s5.
Silver certificates, eO14@61lkc bar silver. 500
6O7sc; Mexican dollars 47ssc At London bar
silver closed firm at 2S 3-16d ounce.
Total sales of stocks. 99S. 400 shares. including
| $500 Atchson preferred. $500 Baltimore Ohio,
10, 400 Chicago, Burlington G. Quincy, $500 Louis
vile Nashville. $40 Manhattan, 1926 Reading
preferred. $500 Missouri Pacific 81. 200 Northern
Pacific, 1907 Northern Pacific preferred 10,59O
Union Pacific. 1,S45 st. Paul. 5.4oO Union Pacific
preferred, 21900 Tobacco. 9.255 Chicago Great
Western, $500 Peoples Gas. $3.50 General Eec-
tric 146.4OO Sugar, 3,45s Rubber
| The New York stock market started off yester-
day morning as if it had shaken off the incubus
| OF the recent tight money scare, but the marked
weakness of Sugar, which made up two-ffths of
the total transactions, unsettled the tone early
and carried prices below Saturdays level. The
decline was quite steady and general for the
mainder of the day. Evidently last weeks sharp
recovery was the result of extensive covering of
| short lines by spectators and the general specu-
| lative public is prepared to pause and take
| breath to study how far the last oscillation of
| the market has brought prices to the true level
| or values. IL is more ana more evident JndL the
| late apprehension a squeeze in money was
largely fictitious. How far the efforts to manipu-
| late the money rate were Influenced by the nat
ura desire of money lenders to obtain better rates
and how far by purpose to a reaction in the
stock market cannot be definitely ascertained,
| but 1t might be ascertaned that very powerful
| financial interests, who have dominating voice
| in the conteol of vast surplus capital had taken
their profits in stocks and willing to
/ ic oh, hour hat f6afr
motive in taking profits must have been con-
viction that prices equal to or in excess of
| their true value. The problem of the speculator
| is whether conditions have so far changed as to
| have increased their value.
The monthly report of the Treasury Bureau of
| Statistics just issued throws light the money
question. The amount of circulation. after de-
Quoting in the treasury Aug. l.
1852. .2O5 greater than year before. satur-
! days treasury statement showed that the cash
balance in the treasury had increased since that
time little $50, 0O0, 900. This would leave
| increased circulation for the year of about
$780, COO OOo not counting the imports of gold and
the increase in bank circulation since Aug. 1.
| Neither does this take account of the large
amount, in the last few weeks, of government
deposits with the banks. There is room therefore
| for very largely increased use of money in the
| country in spite of the treasurys absorption by
| the loan. The actual surplus reserve of New
York banks. although reduced to less than
| S.. 600, also requires some qualifying consid
| erations For thing the government deposits
are secured by government bonds. thus obviating
the necessity of actual cash reserves to secure
them. Some of these banks do not report their
| government deposits at all in making out clear
| ing statements. Furthermore, the surplus
ported is above the 25 per cent requirement. al
| though the state banks required by law to
maintain only % per cent. of reserve. These
| facts explain why the measures of relief offered
| by the Treasury Department have not been
awaited of.
| Bonds were dull, but yielded slightly in the late
| trading Total sales, s1.9e5.OOO. Government
| bonds unchanged.
The following table, prepared by L. w. Louis,
Room II, Board of Trade, shows the range of
quotations.