The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-09-11

The imports of specie last week were $50
467 gold and S59.319 silver. The imports of
dry goods and merchandise at the port of
New York for the week were valued at
g. 055S. The exports Of gold and silver to
ali countries for the week aggregated $751;
500 silver bars and coin and $4,000 gold.
The New York weekly bank statement
shows the following changes:
Surplus reserve. decrease .......... 81, 132 329
Specie, decrease ..........-........... 100 200
Legal tenders, decrease ....-........ 800, 800
Circulation, increase ..-.......-.....- ooo'1O
The banks now hold 81, 49, 25 in excess of
the legal requirements.
The New York Financier says: THE sur
plus reserve of the New York clearing
house banks, to all intents and purposes,
was practically wiped out by the operations
of the week ending Sept. g. The city in
situations are loaned to the limit, and the
loss Of s10.571.0O0 In cash, which is an
amount larger than the excess reserve re-
ported for the previous week, was made
possible only by heavy contraction in
loans. The reduction of over $15,e00, 600 in
deposits lessened the reserve liability by
over So. 10000, so that, despite the frightened
position in which the banks find themselves,
the situation has been ably met. In many
ways pIcStHl COnQlllOnS dTt
anomalous. With reserves lower than at
any time since 1893, money here has not ex-
ceeded an average or per cent, and there
seems to be no trouble in securing accom-
modations. The explanation is found in the
outside loaning at this center. Despite the
fall Of domestic exchange rates to point
that indicates a continuation OF the outward
movement, New York Is being visited regu-
larly by Western bankers, who are in
vesting their available SURPRISES in gilt
edged securities or putting out idle funds in
other directions here
A SERIOUS CONDITION.
"Since July 1 the New York banks have
lost about $50, 100000 IN cash. and they are
now facing period when further drains
are to BE expected 1t stands to reason
that the fulfillment of these demands is i'm
possible unless loans be heavily contracted
or new supplies found. The logical relief
Is to be found in gold imports, which in past
seasons have been always looked forward
TO. Whether the same custom will prevail
this year cannot be stated but circum>
stances certainly favor that prediction. 1t
IS not impossible that treasury operations
may be adjusted and afford some relief.
Looking at the situation in broad light,
however, IL is best described as interesting.
rather than critical. The country Is not
suffering from lack of funds. even III New
York reserves do indicate 1t. The prosperity
of the country has resulted in much wider
distribution of funds than ever known be-
fore, and this explains, in large part, New
York's exhaustion Of banking surplus to-
day"
New York stocks showed some evidence
of firmness in the first hour OF trading, Sat
urday, and up to the time OF the publication
OF the bank statement. The movement in
railroad stocks was exceedingly narrow,
and the selling movement. though not very
pressing, was sufficient to bring the general
level OF prices below those OF last Friday
night. Tennessee Coal COMPOUNDED the bears
by soaring an additional points upward
Q points of the top. Colorado Fuel continued
to show close sympathy and was up over 4
a continued large demand for Manhattan
and sympathetic strength In Metropolitan
and Brooklyn Transit, and good gains in
and Lackawanna, the points of extraordi-
nary strength In the market are exhausted.
housecleaning. and the recent depression
from that source was lacking. Paris was
looked to for a reflection of foreign senti-
cheerful. In view Of the pessimistic fore
casts that have been heard all week re-
garrdin,g the bank statement the e. bears had
statement had been more than discounted
and We're inclined to cover. But the state
ment showed a loss in cash quite s.. 600 900
IN excess Of the most unfavorable pervious
estimates. The comparison is the average
total of cash for sixty days, with the av-
erage Tor the preceding six business days.
AS the totals have been on a descending
scale the average understates the average
total The contraction OF s6.Ol6I0 In loans
= 81 500 900. Otherwise the surplus above legal
requirements would be below a million. 1t
Is believed the treasury would consent to
leave on deposit with New York banks the
payments for taxes next week but this
would only partly relieve the drain. as the
demand from the South will continue and
no increase in cash reserves would result
from the measure itself. 1t is evident.
therefore. that the process OF loan contrac-
ton Is to continue for the immediate future.
THE WEEK ON CHANGE.
Wall sfraef Sfarfa1 he uaak az Mov,
days holiday with a disposition apparent
TO contest the depressing influences of the
shrinkage of surplus reserves In New York
banks and the gathering war cloud in South
Africa. But the climbing of the money rate
and the selling OF stock for London account
proved efficacious arguments against an
immediate further advance I'm prices. Gen.
eral prices refused to advance al any time
and remained Indifferent 10 the wide upward
movement in individual stocks, whether the
Vanderbilts. the volatile specialties, led by
Tennessee Coal or St. Paul The move
ment OF st. Paul was based on the pub
hcation of the annual report and was most
influential In its effect on the general list
Ine large increase in every branch Of the
exceedingly varied traffic of the great sys-
tenn. the extensive improvements and bet
terments effected during the year and the
large surplus Of earnings carried forward
or improvements from current earnings
made most hopeful showing of the con-
aition OF the transportation Industry and
mad an inevitable effect on prices of al
railroad securities
The conditions In the money market have
caused growing caution during the past
week. The downward course of the cash
reserve item OF the New York clearing house
banks has been made little OF for several
weeks past. IL Is argued that there Is plen-
y OF money available. which did not show
IN the weekly clearing house statement
Ihe many new trust companies which have
been organized and the insurance companies
nave been pointed out as sources Of sup
ply. which are not indicated I'm the clear
ing house statement. The fact that banks
IN Western cities have been bidding for mer-
camille paper I'm the New York market was
cited as evidence that the interior was sup
piled with money TO move the crops and
need not call on New York. Deposits OF
Western and Southern banks In New Yori
scale TO other Eastern cities owing TO the
recently enforced rule of New York banks
10 charge for collections OF outside checks
and this was expected to shift whatever de
mand might come from the West and Soutf
Tor money on other cities. And the convic
tfon has been general that gold export,
were an available means Of relief when
lever II was desired to call home our foreign
credits There Ii ground for the prevailing
belief en- all these points. but, nevertheless
New York exchange at interior points ha,
continued downward aud the shipments o.
currency TO New Orleans have commenced