The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-01-22
WILD SCRAMBLE TO BUY
WEEK CLOSED WITH A NEW SATUR-
DAY RECORD FOR WALL STREET.
London Has Finally Begun to Bid for
Local Trade Active.

Sterling exchange was steady, with actual
business in bankers bills at s4.s4%lG4S5 for
demand and at $4S2A@4SS for sixty days;
posted rates, 81 S31s and $4.S51A: commercial
bills, $4s11zQ4.s2.
Silver certificates, nominal 5915G6O15c; bar
silver $3.50; Mexican dollars, 47lSc At Lon
don bar silver closed in fair demand at
q 9-l6d an ounce.
Imports of dry goods and merchandise at
the port of New York the past week were
valued at IS, 232, 44S. The exports of gold and
silver from this port to all countries for
this week aggregated $926.OOO silver bars and
coin and sl.OS6 gold. The imports of specie
this week were $1,7OO14 in gold and $123,969
silver.
The New York weekly bank statement
shows the following changes:
Surplus, reserve, increase Sc, 43O, 600
Legal tenders, increase. ............... 851 POO
Deposits, increase ..................l3 ID, Zo6 800
Circulation, decrease ..........'....''. 100 oVJ
The banks now hold $34 $50. 675 in excess Of
the requirements of the % per cent. rule.
The New York Financier says: THE banks
of New York gained $9,747 800 in cash last
week mainly in the form of specie. The
heavy increase in gold was due to the treas
ury disbursement. to receipts from Europe
and San Francisco and smaller transfers
from other points The cash expansion, ow-
ing to the relatively small loan increase,
greatly swelled the surplus reserve and the
gain in this item for the week was no less
than $3.50 GOO, bringing the total idle eX-
cess to a point we'll over S55 900, the high
est figure, in fact recorded since August
last. Much interest has been excited by
the slOwness with which loans are advance
ing in the face of a stock market and in
dustrial conditions never before paralleled
IN activity. One theory that finds ready ac
ceptance is that the present speculative
craze finds its course in investment buying
and that securities are being paid for and
taken out of the market, instead of being
used collateral. There is some room
for this conjecture, but the operations of
the banks for week past do not reflect it.
While the gross loan expansion was but
3d. 500, C0G a detailed analysis shows that a
gain was made in spite of a loss of s. 900, 900
in loans by one very large institution which
is heavily interested in sterling investments
and treasury disbursements. Whether this
loss represents the maturity of outstanding
foreign credits or operations with the treas
ury is not known. but it is true that to
meet the decrease and report the gain noted
the other clearinghouse banks must have
increased their loans over $S000,000 Opera
tions with the treasury are of unusual i'm
portance at present, since the heavy surplus
of the banks, not only here, but all over the
country, is largely due to the $S0.0c0,JO0 or
$9O,0C0,0OO of government deposits held by
them.
EFFECT OF Low RATES.
1.-THE present enormous volume of specula-
ton, based on the country's prosperity, is
still dependent on these deposits as assur-
ing low money rates and any policy looking
toward their withdrawal or reduction
would no doubt, check the violent advances
which have a marked characteristic of late.
More than that it would put money on
plane where profits are possible providing
gold imports did not Immediately follow.
AS it is, the New York banks find it inn
possible to use the money now flowing to
this center and the movement has only be-
gun. The very presence of these funds only
tends to exaggerate unsound speculative
At New York the total sales of stocks
Saturday were 762 500 shares, including:
Atchison, S4,G2O; AtchisOn preferred, 20, 745;
200; Chesapeake & Ohio, 1850; Burlington,
Sl5O; Cleveland Cincinnati, Chicago q St.
Louis, 5000; Delaware & Hudson, $500;
Denver & Rio Grande preferred, 72l0;
Illinois Central 80, $50; Louisville & Nash
vile, II, 800; Manhattan z, 800: Metropolitan,
$50; Reading preferred, 5,72O; Minnesota &
ST. Louis, 400: Missouri Pacific, "a 21O;
Missouri, Kansas & Texas preferred, $500;
New York Central, $3.50; Northern Pacific,
1 I; Northern Eco Pacific preferred Il ,42O;
Paul, $3.50; Southern Railway 500; South
ern Railway preferred. 1920: Union Pacific
preferred, 5000; Wabash preferred, 400;
$3.50; Steel Is, 100; Peoples Gas, $50; Brook,
lyn d. Transit, S.1OO; Pacific Mail, lbs; Sugar,
1882; Tennessee Coal and Iron, $500;
Leather, 6,S10; Western Union, IA, $50; chi,
cago Great Western, Is, $50
The New York stock market Saturday was
exceptionally active and remarkable adj
Vances We're made in many shares the ex-
IRENE gains being in investment issues The
average of prices was higher than in years
and the volume of trading in stocks and
bonds was the largest yet traded in on
Saturday. Had the two hours session been
extended to five hours as on other days, and
had the same rate of trading continued,
there would have been $4,000 900 bonds and
1.900. 600 stock dealt in. Investors, weary Of
waiting for substantial reaction. seemed
panic-stricken to place their money The
opening quarter OF an hour was the most
excited in sympathy with the booming mar
ket for New York Central on the London
exchange. All the Vanderbilt shares made
sharp advances on rumors concerning the
plans of the controlling interests of the New
York Central. The street judging by the
reports, but nothing was given out in regard
TO the plans which were said to involve
closer relations between New York Central,
chicago q Northwestern and Union Pacific,
although an unnamed director of the latter
company was quoted making a denial as
far as the Union Pacific Company was con-
cerned. New York Central made an extreme
advance of S7s. Union Pacific 212 for the
common conn and 81, for the preferred; and
ward all day and it is estimated purchased
about 5000 shares in New York although
the London exchange closed before the New
York market opened. There was heavy real
iZing in some stocks during the advance
in the Vanderbilts. but all offerings were
readily taken. Commission orders were so
large that some floor brokers having more
than they could well attend to, had to re-
fuse orders The fractional declines that
occurred were due to the suspicion on the
part of the traders that prices were bid up
in the interest of sellers. The appearance
Of the bank statement, assuring, as it did,
All abundance of money, eXerted a strong
influence and a renewal of confident pur-
chaSes. The closing was strong, but at re-
cessions from the best figures. The more
important gains for the day, outside of the
Vanderbilts. Union Pacific and Atchison,
We're Great Northern preferred, 2, and
declines were fractional, excepting Hawaiian
Commercial 3L; Pullman, 2, and Western
Gas. l. National Biscuit common closed at
a loss of q, after previous advance or "a.
Sugar. American Tobacco Manhattan Peo-
pies Gas and Federal Steel were weak.
RUNAWAY STOCK MARKET
The stock market the past week was
treated to a daily average of million
shares dealt in, making allowance for the
short session of Saturday, and on three
days the dealings were in excess of a mil
lion Saturday was a fitting close of the
remarkable week, the highest prices of re-
cent years being attained in many stocks.
There were various potential influences at
work, the most important Of which being
the continuance of easy money, very favor
able trade reports, especially the improve
ment in the IRON business. large railway
earnings and the governments foreign