The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-07-03
AN ADVANCE EXPECTED
STOCK MARKET RECOVERED LAST
WEEK AND CLOSED STRONG.
Some Great Railway Combinations,
with Better Reports, Give Bulls New
Courage-LOcal Trade Promising.

Courage-LocaI Trade Promising.
At New York, Saturday, money on call
was 316 per cent. and firm; last loan, per
cent.
Prime mercantile paper, 3A64 per cent.
Sterling exchange was steady, with actual
business In bankers bills at $s714q4S7la
for demand. and at $4.SS14a4s51s for sixty
days; posted rates. 4S6d4S and $4.ssi2@
4.s9: commercial bills, $4S5.
Silver certificates. 60Q61c; bar silver, 60lIc;
Mexican dollars. 4S1zc. At London bar silver
closed steadier at 27aad an ounce.
The imports OF dry goods and merchan-
disc at the port OF New York for the week
were valued at SIC, s73, 361. Exports of gold
and silver to all countries for the week ag-
gregate s775.ss4 silver bars and coin. and
s5.o75,942 gold. Imports of specie, $14,S52 in
gold and s9.029 silver.
The New York weekly bank statement
shows the following changes:
Surplus reserve. decrease. 81 2G3 go
aatoIis' increase ...................... SOl5,6O
2pecie' decrease .................... II, 53l, 800
Legal tenders, decrease. ............. $50. 200
deposits, decrease .................... 3S77OOO
CIRCULATION. decrease, ................ 10000
The banks now hold S14, ga $50 in excess of
the requirements.
The New York Financier says: "The state
ment Of the associated banks for the week
ending July 1 shows some of the heaviest
changes in months, due not so much to
unfavorable influences as to the operation
OF the half yearly period. The three fac
tors which have served to reduce the cash
reserves by nearly eleven and one-half mil
lions are the gold exports, treasury debts
. 10 n
present conditions it may be said safely
that no more gold will go to Europe unless
an exceedingly fancy rate is paid for it.. AS
for the treasury, 1t is known that for some
time past the banks have been losing stead
lily to the government, owing to transfers
OF deposits and the growing excess of GUS
toms payments over the disbursements.
This Is a very satisfactory feature of the
situation, showing as II does, a return to
period of normal business, but for the time
being. 1t Is taking more or less money out
of circulation. Beginning with July. how
ever, the treasury Will have heavy pay
ments In the way OF bond interest and other
expenses to meet and this will allow the
banks TO recoup some Of their previous
losses In the same manner the institutions
Will begin TO show the effect of the enor-
NOUS July disbursements and while the crop
season is not far distant, il is to be eX-
pected that the money movement will con-
cident has been the shipping of gold from
New York to the interior during the past
gold. that the banks, In the face Of the
continued drain on their resources, able
TO maintain their loans at the highest figure
ever known and still report fourteen mil
lions excess reserve, is regarded as album
dant proof of their strength. How the
statement will affect interest rates is not
known, but since any material advance is
certain to result in rush OF idle capital
TO this center, stringency In the local
market is regarded as highly improbable.
The current statement shows that the
larger banks, which have been carrying the
greater proportion of surplus reserves, have
lost heaviest, so that the reduction does not
mean that the banks as a rule are at the
limit OF their loaning power"
Total sales of stocks amounted to 90 ISL
shares, including: American Sugar 10, 100;
Atchison, $1,000; Atchison preferred, 1900:
Brooklyn Transit, $1,000; Burlington. 1900;
Paul. q 400: Union Pacific. 1880; Union Pa
cific preferred II, 500: New York Central,
12,20O; Pennsy .vania, 40,1W.
FRESH DEMAND FOR STOCKS.
The remarkable demand for the standard
railroad stocks continued as strong Satur-
day as II was Friday. and applied to much
the same stocks Pennsylvania took the
foremost place. both In respect TO activity
and strength. The stock showed the larg-
est gain at the opening and held its lead
ership without change throughout the day,
closing at the top level, 3s4 points above
Friday nights price. Study of the May re-
port of earnings the primary cause of
the strength of this stock but there were
also rumors in circulation that the incursion
OF New York Central into New England
was to be followed by a similar move on
the part OF the Pennsylvania to lease of
the New Haven road The sustaining
strength OF New York Central at its high
level doubtless prompted some large buying
OF Pennsylvania, already paying per cent.
more per annum in dividends than New
York Central and selling so far under the
latter The extraordinary railway earnings
reported from every section of the country
was the motive for the buying i'm that de-
partment. The grangers were all in good
demand and gained a point or over on the
Rock Island showed the largest gain in
price Burlington felt the effect Of profit
taking on the publication of the May state
ment. showing an increase In the surplus
for the month of $4,000. The Union Pa
ctfic stocks enjoyed the benefit of strong
showing in the May statement and rose
largely confined to the leading railroad
stocks. but became general after the pub
by shorts, who were disappointed at the
failure OF the market TO weaken. There
was early weakness in the specialties on the
injunction against the payment of dividends
on Federal Steel and on talk of an immi-
nent strike on street-railway lines but dis
Chalmers OF an intention 10 strike by labor
leaders. and the strength of Sugar on the
decline In raw sugars, helped this depart
ment, as did the strength OF Anaconda
Consolidated Gas was strong on talk of a
settlement OF the rate war. International
Paper and American Smelling weakened
sharply on the late transactions Bonds
were moderately active and strong
In the ordinary course of events the op-
orator In stocks and securities is influenced
by the expected rather than by present con-
ditions- Except when some sudden and I'M
fOreseen event Is precipitated the course
OF prices always reflects a forecast and as
far In the future the operator Is willing
to rely his judgment TO penetrate. Thus
the professional operators sold stocks a
week ago on the well-grounded belief that
the course OF events would inevitably lead
20 a squeeze In the money market before
July l. Last week, although the break had
not occurred, stock operators began 10 look
beyond TO the period of abundant money
which will come with the disbursement of
July interest and dividends. and have bought
stocks I'm anticipation OF that condition. Op-
orators who sold short week ago have also
been buying 10 cover their contracts and
49, A.I..l -