The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-10-24

the current week indicates that for some
time to come it is likely to hold that dstinc-
ton. The changes that in five weeks
brought an expansion in the surplus re-
serve from $42404 400 to $2S, Az. 1925 and swelled
the deposits nearly $46 100000 have been so
rapid that their significance is not fully APP
preciated. They emphasize the return of
easier conditions, due in part to the liberal
policy of the treasury with respect to pub
lie deposits, and also the favored position
of the United States in regard to interna-
tional exchange While European discounts
last week moved upward, American money
rates receded. AS natural consequence,
investments in sterling bills, now coming
forward rapidly, afforded safe profit, and
that this was taken advantage of is seen in
the increase of $1O.6o7. 800 in loans reported
for the week. Specie receipts, both from
Europe and the Pacific coast, were consid-
cradle, and the subtreasury's operations
were in favor of the banks. This accounts
for the gain of $S,105, 700 in gold The in
terror movement, what little there of it
this fall, seems at an end and the flow of
money is again in this direction. The in
crease of 1907 300 in legals is to be attributed
10 reports from this source. The heavy
gain in deposits is just about normal
FINANCIAL SITUATION.
THE statement in detail presents nothing
that controverts the analysis already given.
The National City Bank, as usual, shows
the heaviest gains, and the aggregate ex-
pansion of deposits can be traced for the
most part to seven banks, the bulk of the
new loans falling to the same institutions.
1t is interesting to note, however, that the
Central National, an institution with large
commercial connections, shows up unusually
well in the gains for the week, indicating a
| revival in business activity that is quite as
important as anything else the statement
reveals With an assured supply of money
and a steadily growing trade balance, it
would not be surprising to see the totals of
the New York banks expand rapidly from
this time on, even though the course of
speculation seems to be checked for the
Total sales of stocks Saturday were $50. 800
shares, including: Atchison preferred, 49,
I IsIan d. 3 s. s. f$sS9 L .S N 1872 R9sk
baeco. 4s,4S5; Sugar, 1895
Inc New York stock market again showed
itself Independent of the depressing influ-
ences of London and Europe Saturday, ex-
cept at the opening, when few of the in
ternauonal stocks were allowed to fall be-
stocks on foreign account made up a con-
| siderable proportion of the days business
and was well absorbed at advancing prices.
The buoyancy of the wheat market made
grain-carrying roads prominent in the
movement. the buying of Atchison securi-
ties, particularly the preferred, again oc-
cupying a conspicuous place But the stocks
of all the Western roads were well bought
ana advanced in price. Sugar ended its
downward course very early and closed
near the top with a net gain of IL, the I'M
DERIVING strength manifest in the market
making the bears timid about leaving short
contracts uncovered over Sunday. Tobacco
was marked up to 1925, with every evidence
or violent manipulation and shorts were
driven to cover heavily at every stage of
the advance. Even the coaers showed the
effects of the uncertain temper developed
by the bears and made recoveres on short
0nGr1nRG SfQfamnnf w iI1ct
about as expected and had little effect one
way or the other. The gain in cash had
been on imported gold and by outgo from
the sGbtreasury. and the heavy increase in
loans OF over $l0O0O,OO0 represents for the
most part loans. on sterling, which is an
element in the lending of money abroad.
The increase in deposits from this source
expanded the reserve requirements so far
the surplus by $3.50 us. Business in both
stocks and bonds was well distributed and
active. and the market showed a decided
tendency to broaden out. The amount of
business done was larger than for any half
day for some time
THE WEEK ON CHANGE.
The market has shown a growing strength
and activity as the week advanced, and
has fairly shaken off the lethargy which
even the long array of favorable factors in
the situation has seemed powerless to
awaken from. Even so phenomenal a show
ing as st. Paul's earnings for the second
week in October, the largest in the roads
history and nearly $4,000 over those of
last year, served only to encourage feeble
resistance to the Industrious manipulation
for a decline of the board room traders in
stocks. 1t is maxim of professional trad
ers that duh and sagging market for
stocks Is bound to produce a general re-
action. The uncertainty. of the European
political situation was cited as additional
argument for a season of dullness and de-
clines. But, cuiiously enough, the more.
threatening developments of European pol
tiles have indirectly at least, given the
stimulus to the stock market which en-
abled it to snake off its torpidity. The
weeks events in financial circles have, in
fact, given a striking demonstration of the
strength of this countrys financial posi-
ton and it's power to treat with indifference
old-wcrld Developments There has been
nothing in the domestic situation which
caused more doubts to finonciers than the
crop, temporarily held back should come
forward. But this week has seen the crop
coming forward in unprecedented volume.
Yet so keen has been the foreign demand
for our product that the largely augmented
primary movement had made but little i'm
preston on the visible supply Even the
domestic demand proves unexpectedly keen,
indicating that the sweeping out of the
worlds reserves by last years high prices
had evidently left void which our unpre-
cedenred crop was needed to fill. The later
news of the military and naval preparations
In France and in England resulted in
fevertSh demand for wheat, which, If main
taiaed, would mean incalculable advantage
to this country. already enriched by last
years bountiful harvest at the high prices
The prosperity of the Western country
from this cause is conclusively demonstrate
ed by the large westward movement of
merchandise, which carried earnings of
Western railroads we'll above last years
level. even before the resumption of the
grain movement. The weeks recovery in
stocks logically began, therefore, among.
those of the Western grain-carrying roads,
and owing to individual cases Atchison
preferred took leading place in the move
ment.
The money markets have shown them
selves equally impervious to the influence
of the stringency existing at all European
centers the Bank of France being the last
of the government aided institutions TO adj
vance IT'S discount rate. which it did on
Tuesday from to 3 per cent. Meantime
the large excess of our exports over inn
ports which the grain and foreign move
ment had been making exchange and in
stead of drawing this ii has been left at
interest mostly in Germany to be liqui-
dated in future
The money stringency and the war scare
abroad have thrown not far from 100000
shares of stocks on the New York ex-
change for liquidating during the week
But these have been absorbed at advancing
prices and with money rates declining For