The Indianapolis journal., 1899-12-18

Fet into conditions bordering panic sew
eral times during the week. The markets
quick response 10 any development in the
London money market pointed directly to
that point as the seat OF trouble. All the
powerful resources of the English imam
cial center were evidently being eXerted
To- attract funds &c meet present and pros
pective argent needs. The Bank OF Eng
land statement showed a continued drain
On interior points TO supply the extraord-
mary trade activity in England. just as the
New York banks have been drawn upon
from interior POINTS I'm this country The
extreme depression in the London stock
market, on the news OF the setback TO the
British operations and the convulsive re-
coVerfeS caused by even vague runorS OF
SUCCESS. warrant the deduction that the
English money market has adjusted itself
to hopes of earlier relief than now seems
probable by resumption OF shipments OF
gold from South Africa
URGENT NEED AT LONDON.
The urgent need of other relief Is mani
tested In the vigorous upward movement
of sterling exchange at all the worlds
money centers. Both at Paris and New
York the rate reached the gold export
point during the week. The Importance.
attached to the matter In the New York
stock market was demonstrated in the de-
moralization of Wednesday. when prepa-
rations were making to export gold, as
well as in the sudden recovery of Thurs
day, when a relapse in the sterling rate
raised the hope that gold exports We're
for the time averted. Although the sub
treasury absorption of funds from the
market had run up to nearly s5,00O.000 be-
fore the announcement of the Treasury
Departments decision TO forego a rebate
in anticipation of the Jan. 1 interest on
bonds, that measure is looked to to relieve
the drain from that source for the imme-
date future. The course of the interior
changes has indicated a response there,
also, to the need of relief in New York.
and funds have been received not only
from interior points in this country, but in
Canada. With the relief thus secured from
those sources the effect of the gold ex-
ports was largely Offset. The STOCK Ex
change liquidation itself has gone to such
lengtns as 10 very materially replenish the
supplies OF available funds. The volume
or the transactions make Ii evident that
the interests affected were larger than the
ordinary professional operations in stocks
The weeks developments in Boston show
that the necessity OF support in the copper
mines market was factor in the situa-
ton. Large selling was attributed also to
the account of important Western centers.
The decentralization produced in some of
the newer industrial stocks was an indi-
cation of the burdensome nature of the
underwriters holdings and the narrow
margin for many of the new fotations.
which have been below the listing prices
Oh the eAcndnSe IN many cases. III Is a
maxim of commerce that a general rise in
prices induces speculative buying which
in itself furthers the rise in prices. But
speculative buying of commodities which
is not for consumption and speculative
buying of securities which is not for in
vestment are certain ultimately to carry
prices above the level of consumptive and
investment demand. In the case Of securi-
ties the price level recedes the rate for
money advances. Speculative losses be-
| come necessary to secure the readjustment
| to true conditions based the rate of re-
| turn and its security. A certain amount
| of investment buying has been attracted
| by the weeks relapse in prices, but it has
| shown a notable falling off on any SUBJ
| stantial rally I'm prices.
Semi-speculative and newly issued bonds
have shown extreme declines of 1 to 2%
| points. But the more established mort
cages have shown no fluctuations of i'm
| portance. United States fives advanced q.
| old fours II and new fours "A in the bid
| price.
| Following are Saturdays share sales and
II