The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-02-07

was easy at l12dIS4 per CENT last lOali, 112.
Prime mercantile paper, Sd4 per cent.
Sterling exchange was steady, with ac-
tuaI business in bankers bills at $4.s5d4S5A
for demand ard S4S3Q4.SSis for sixty days;
posted rates, 1881 and s4.S6; commercial
bills. $4.S2Q4S2k.
Silver certificates, 5615d571zc; bar silver,
567sc; Mexican dollars. 1880. At London bar
silver closed at 2614d an ounce.
The imports at the port of New York for
the week were Gold, 81 O4S 1893; silver, SIS, S27;
dry goods, $2.72l,93O; general merchandise,
$1,000, 700. The exports OF specie were: Gold,
$1s6,6S5 silver, sl,OS4,675.
The New York weekly bank statement
shows the following changes:
Surplus reserve, decrease. sS27. S25
Loans, increase NEUTRALITY-SUSPICIOUS.. 1884 100
specie, increase .................... 995, 400
Legal tenders, crease............ 1,O12 500
deposits, increase .................. IL ,343 300
circulation, decrease ................ 5000
The banks now hold $94, ,625 in excess
of the requirements of the % per cent rule.
The Ffnancier says: THE statement of
the New York clearing house banks for the
week ending Feb. is notable as rejecting
the ability of the banks to absorb and put
to more or less profitable use the immense
accumulation of funds at this center The
aggregate deposits of the sixty-five institu-
tons are now nearly 1874, 0OO, 900. What this
means will be better appreciated when it
is stated that it is an increase of $165, O000 900
over the same week last year, and $241, OO0-
900 in excess of the deposit item for the
similar period in 1896 The loans of the
banks now stand about $633 SOC, 000 which is
$l36, 100000 in excess Of the first week in
February, 1897, and S1S5, 100000 higher than
reported in 1895. Yet the banks now have in
their vaults less than $50, 600 600 idle cash as
against $54500,0O0 one year ago, and 0,OOO-
900 two years ago. Clearly, the banking sit
uation, as regards demand, might be a great
deal worse. Even conceding that special
operations account in some part for the
enormous totals, there is a considerable
margin for legitimate commercial needs
shown in the current statements from week
to week
LOANS AND DEPOSITS.
The increase in loans for the past six
days was 1894 100, which is pretty evenly
distributed among eight or ten leading
banks, one institution only showing a more
than ordinary decrease. The expansion of
deposits was $1l,343,1O0, and the banks
gained in cash $2,0OS, OOO The loan increase
and the cash addition do not account for
the deposit growth, the discrepancy
amounting TO $l34S0OO, but this is due per-
haps, to the confusing system of averages
employed in making the statement. The ex-
pansion in deposits can be traced through
larger number of banks than usual, the Ma
tional Park leading. with over IS 600 600 to
It's credit The net deposits of this one in
SIltution are now in excess of $J0G0.O00,
Inc banks are still gaining heavily in cash
from the interior. although domestic ex-
change at important centers shows decided
weakness as compared with two weeks ago,
* IN hr F,e.ne nod h.
ton of interest remittances to New York
The payment of several millions of Union
Idclnc ueposlts INTO the treasury has had
no appreciable effect on the market, but it
IS to be noted that the excess reserve of
the banks is down $S27 .S25, and, with any
thing like a continued showing such as
made in the current statement, rates will
probably be steadier In tone. Anything
more than moderately firm basis, how
ever, seems out of the question for a con-
siderable period. The reserve investments
by Amrican interests abroad are in the ma
ture or safety valve to check sudden huc-
tuations upward"
Total sales of stocks, So 400 shares. includ-
ing; Canada Southern. 1911: Chicago. Bur
lington & Quincy, 1850; Erie preferred.
Michigan Central, 10000: Reading preferred.
5,420; New York Central ESQ: Northern
Pacific, S.6SS; Northwestern, 1925; st. Paul.
~ ~; Union Pacific. $3.50; Tobacco, $3.50;
General Electric, 1552S; Sugar. II 955
Saturdays stock market was lifted to n
higher level by the conspicuous strength of
comparatively few stocks 1t was note
worthy that the Vanderbilts which gave
the initial Impetus to Fridays advance,
showed the effects yesterday of profit TAX
ing, Lake Shore losing points and New
York Central small fraction. Michigan
Central after bounding upward at the
opening, reacted over a point but closed
with q substantial gain. The far-reaching
Importance of the merging of New York
Central and Lake Shore and the prospects
of additions to the plan continued to have
marked sentimental effect on the whole
market. The possibilities i'm the way of re-
duced expenditure for administration and
or stability of rates for traffic from con-
solidation are canvassed with eager atten-
tons by dealers in securities. PENNSYLVANIA
was conspicuously affected and the long
Sidiafy company, the Pittsburg Cleveland
Chicago & st. Louis, is pointed TO as evil
lington rose strongly on rumors of the rim
ening of the refunding plan and a pending
Increase IN the dividend rate. General
Electric, Lake Eric x Western preferred
and lsackawanna were markedly strong
and Norfolk x Western preferred contin-
ued it's upward movement There vas a
reactionary tendency in the Erie and tbe
Susquehanna & Western stocks on realiZ-
ing. The recent advance is accounted for
exchanging the Susquehanna stocks for
an undetermined percentage of the Erie
stocks Great Northern preferred sold at
q further decline of points and was bid
down still further the various reports Of
plans for increased capitalization and dis
tribution OF the company's accumulated re-
the conviction that plan has yet been
formed. Although business was on n large
scale and widely distributed the fIuctua-
lions IN price We're exceedingly narrow out
SIDE or special cases. the most important
OF which have been indicated.
THE FLOW OF FUNDS.
The heavy increase of over ST., eco in
deposits of clearing house banks for the
week marks the continued flow of funds to
the New York center and the withdrawal
or government deposits must be allowed for
III addition in estimating this movement The
expansion of nearly SS00O,OO0 in loans,
though heavy, falls far short of absorb
ing the total of the increased deposits The
activity in the stock market undoubtedly in
Volved large amount of borrowed money,
and II Is probable that other speculative
markets have drawn on this center for
funds during the week. There is reported.
also, good supply of attractive names in
the commercial paper market. Under the
circumstances the decrease in the surplus
reserve is disregarded in the stock market
as being simply the result of the failure of
cash reserves TO keep pace with the rise
IN the legal reserve level. The cheapneSs of
money has led to the Withholding of matu-
ring exchange obligations which are ex-
changed for long bills, thus keeping up
rates OF exchange. The stock r;trlxefss I'M
usual activity the past week has been char
acterized by remarkable strength in spots.
Apparently. there have been some few els-
mentS of strength on each day to sustain
the market, although very heavy realizing
was IN progress IA stocks that have been
foremost IN recent advance. AT different
times during the week the market has been
under the influence of aggressive strength
IN Chesapeake a. Ohio. Baltimore AZ Ohio,