The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-11-17

BOND PURCHASES BY THE TREASURY
IMPART A BUOYANT TONE.
General List Affected tn IN Marked De-
Stronger-Local TIade Activity.

At New York. yesterday, money on call
was firm. at sac per cent; last loan. per
cent.
Prime mercantile paper, 5G5& per cent.
Sterling exchange was strong. with actual
business in bankers bills at S.S52ad4S5 for
demand. and As1kG4s1z for sixty days;
posted rates, As2h and s4S; commercial
bills. "a. s011G4S1.
Silver certificates were 5s15a591kc; bar sill
yer was 5Slac: Mexican dollars were 47Ac.
Bar silver, at London, was steady at I'D
per ounce.
The New York securities market showed
instantaneous response, yesterday morn
ing. to the promise of relief to the money
market contained in Secretary Cages cir
cular offering to redeem SIS 600 GOO of gov
eminent bonds at the market price of
Wednesday. The first hour of the trading
witnessed a very broad, animated and buoy
ant market the activity and strength be-
ing very generally distributed throughout
the list. The rapidity of the advance invited
considerable profit-taking, and there were
quick recessions from the opening level.
But the demand for stocks continued un-
appeased, and until the higher level was
reached again the buying continued. At the
high level there diminution in the
demand but the undertone of the market
continued remarkably firm ard offerings to
realize were quickly absorbed. The whole
market hinged on the days developments
concerning the Treasury Departments Of
fer, though the opening strength was added
to by sympathy with London, where the
markets were affected by the rumor of the
death of the Boer General Joubert The
very considerable amount Of bonds brought
to the subtreasury during the day sus-
tanned the strength OF the market: The to-
tai amount offered was 81 S9i. 200. but Wall
street was full of rumorS of very heavy
blocks Of bonds accumulated by banking in
themselves of the first offer to buy by the
Treasury Department. The aggregate
amount covered by these rumors was con-
siderably in excess of the total amount of
bonds TO be taken up by the treasury. No
confirmation of these rumors could be had,
however. buoyant tone was impaired to
otner government issues at the call on the
Stock Exchange, apparently on the theory
that the offer of the secretary of the treas
9ry might later be extended to include ad-
ditional bonds. The money market was
somewhat easier in tone. but did not yield
below per cent The response in the for
eign exchange market, however, was
marked. Posted rates for sterling were
marked up full cent the pound. and
actual rates rose Il cent all around, in spite
OF the easier money market at London and
government bonds would naturally serve
10 discourage the acceptance, by holders, OF
far as the available supply is concerned, it
was known up to a recent time that the
New York banks would have difficulty in
obtaining additional government bonds as
security for government deposits, in the
event of an offer by the Treasury Depart
ment to increase its deposits. There has
been some accumulation of bonds by the
banks in the past few weeks, but no reli-
able estimate can be obtained of how far
their previous holdings have been increased.
The previous holdings were mostly in use
as security for circulation and for govern
ment deposits. so that their sale TO the gov
eminent would not serve to increase the
money supply In the market. 1t Is not be-
lieved that private holdings of bonds and
holdings of fiduciary institutions invest
ments will be drawn upon 10 any extent in
response TO the offer of redemption.
The bond market was active and strong,
the speculative issues and reorganization
bonds being favorites. Total sales. at par
value, were $.570,000 United States new
tours advanced y, the threes and old tours,
registered. Y. and the threes and old tours,
coupon, and twos. Il in the bid price.
Following are the days share sales and
the closing bid prices: