The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-12-11
THE INDIANAPOLIS JOURNAL MONDAY DECEMBER H. 1899

the sugar war, and formulated rumors of
new and powerful competition In the TO-
bacco trade have served to demonstrate
the vulnerability of the trusts to en-
croachment on their fields by reason
of unwieldy capitalization and dividend OBJ
legations. The admitted overcapitaiizauon
of many of the newer industrials begets
n spirit of distrust. The fact that the ac-
tivity in the iron and steel trade has re-
ceived a check for the first time since the
BOOM" was reflected in the stocks of iron
and steel companies.
INDUSTRIAL LOANS CALLED.
For all these reasons lenders of money
have chosen those loans to call first which
had any of the industrials among the COL
lateral with which they were secured.
Those who controlled the limited supply
of loanable funds showed equal discrimina-
ton against industrial stocks in making
new loans. The supply of money in New
York has suffered from a renewal OF the
interior demand, especially from the South.
where cotton is still coming forward Inc
subtreasury operations have made hed.y
inroads upon the cash resources of the
banks. and the relief by government ponu
redemptions has been gradually running
down until. on Thursday, IL ceased alto-
gether. Bids for government bonds IN inc
open market are at higher figure than
the government offers. and the government
project for refunding the national dept
prompts the owners OF government ponus
to hold them. The existing surplus over the
legal reserves shown by the clearing mouse
banks is partly illusory, as fully half the
members of the association were down 10
the legal limit last week Even those VINO
hold the surplus are anxious 10 nave q
little more room to turn around as the
New Year period approaches. provision
must be made for the largest interest anu
dividend disbursements on record: Inc
course of the foreign money markets as
closes N
most important Incident of the week oelng
the advance in the official discount rate or
the Bank of France from to 3s per cent,
to the highest rate for thirteen
of loans and of note issues py
the French institutions indicates prep,
a determination to contest the Bank or
England's effort to attract funds TO tnat
center. The London money market mas
shown signs of ease and has been able 10
repay large sums to the Bank OF England
but the bank. not conte-it with the recuper-
alton from that source, has been Seiiins
government securities, or, as II Is termed
borrowing from the market. rms Is d
measure designed to keep up the private
money rate so it will be responsive to the
bank and may be preliminary to further
advance in the latter. The London money
market is feeling not only the cutting OH
of the usual supply of gold from the Trans
vaal mines. but the needs which the I'M
precedented activity in trade in this coun-
try is developing. War expenses change
South Africa to drain on the money mar
ket, from being the principal source or sup
ply The severity of the London need Tor
money over the end of .he year yet re-
mains to be developed, but until 1t Is APP
peased, any relaxation in the New YORK
money rate would certainly lead TO prompt
Withdrawals of gold. to lend in London.
Spectators have, therefore, abandoned
hopes of easier money for the present and
have sold stocks.
The bond market has moved in sympathy
with stocks, on smaller volume OF deal
ings and over a narrower range OF prices.
United States new fours, old tours ana
fives advanced "a, and threes Is In the DID
price.
Following Saturdays share sales and
| the closing bid prices: