The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-10-23

6oA0 oAAa Nhof'e0 ~ AfN
dry goods and merchandise at the port of
New York for last week were valued at
SIC. IL. GEO.
The weekly statement of the associated
banks shows the following changes:
Surplus reserve. nerease.......... $263. 725
Loans. decrease 2,Soo.VJ
Specie. decrease .....-......"-..... l-6654UV
Deposits. decrease ................. 6.5O.50
Circulation, increase .-......-...-....- lO,J 90
The banks now hold 81, Al .075 in excess Of
the legal requirements.
The Financier says: the associated
banks OF New York city lost ST. 901 cash
as a result of the operations OF the week
just elapsed. but the reduction of reserve
requirements TO the extent of $1.642.00 en-
abled them to add something over a quarter
of a million to the surplus. bringing the
excess cash up to 81 .O25. The cash de-
crease was due entirely to the movement of
funds TO the interior. subtreasury operations
having been i'm favor of the banks The in
teresting feature of the statement lies in
the continued decrease in loans and de-
posts. over the summer and fall season.
Since the end of June the banks have re-
duced their outstanding loans no less than
s7s.Ooo.ooo. while deposits have contracted
over $40. ooO.0 900. As indicating the causes
operating to bring about this shrinkage, it is
worthy of note that one institution, which
transacts more or less business with the
treasury. has contracted its deposits about
$33.O0o.O00 from the high point In June. The
banks as a whole held on June "a last
S266. 3s.o COZ. specie and legal tender, or nearly
SI3,oC.U0 in excess OF the amount now re-
ported. Figures like these go to show the
enormous decreases which the banks have
sustained since the opening of summer. How
long this liquidation is to continue is a mat
ter of conjecture, but il does seem that the
tide must turn soon. Making allowances for
higher prices and the requirements of an in
creased business at interior points. the fact
remains that many country banks are car
rylng more money than usual. and now that
the crop season Is ending. il is only natural
that the surplus coming into these institu-
tions should seek lodging place in the larger
financial centers. There are bankers who
profess 20 believe that the return volume of
money this fall will be smaller than usual.
ly appreciated. The easier conditions in
money abroad are regarded as important by
nnanciers; who read from the falling quota
lions a definite answer to the fears ex-
pressed only a few days since relative to
possible exports of gold The outward move
ment OF grain and cereals may serve to hold
exchange quotations at a safe level.
DEALINGS IN STOCKS.
The traders in stocks were unable to in
duce any noticeable movement i'm prices
during the two hours OF Wall-street trading.
The bears were inclined to attack the in
dustrial specialties, when il became evil
dent that the bulls were not i'm an aggra-
waited mood Sales for spot account were
In evidence In the specialties, some of which
dropped off a point or over. Realizing also
was manifest In Pullman and New York
Central. but the decline i'm prices brought
out no large offerings OF stocks and the
bears had generally covered their contracts
before the bank statement appeared, bring
Ing prices back to about last nights level.
"A nominal Increase In the surplus reserves
price OF Sugar in an attempt to induce a
following. They were as unsuccessful as
airy tendency in the whole list. which was
very narrow in its activity. The closing,
therefore. was easy at trivial net changes
Tn main features of the bank statement
were a repetition of those of last week.
There is nothing in 1t TO encourage an ex-
pectation OF easier money, but as last
money stringency, the stock market was
tncnnea 10 ,ne view mat THIS weeks show
puzzling to account for the greater ease
which has developed in money during the
reported by the banks Of ss,s5S,oo h
stock market borrowers hope that money
s wii c esaSe TO 1d now 70 Tha interior ars points u during q;
some large holdings Of government bonds
BY fiduciary institutions. the anticipated in
terest upon which will be applied for next
week and so be made available for the
money market.
The uneasy and Undecided movements OF
professional stock operators have caused a
confused and irregular movement Of prices
during the week. As the professionals were
the closing up of accounts has resulted in
higher prices. That the short interest has
been largely reduced as a result OF the
thus technically weakened Is a safe as
sumption The bears have had their pro-
ti bia up o prices Where sT ni thew ~ detected Sers au seS
mand from a~short interest. The bears have
sought to facilitate their covering move
ment by raiding individual stocks and
spreading alarmist reports in the hope OF
inducing holders to sell. The growing de-
termination of holders not TO sell at the
lower level which prices had reached was
the source OF the uneasiness in the minds
OF the bears. Operations have been almost
entirely confined to these professional ma
neuvers and the public has not been a fac
tor In the market.
BONDS AND LOANS
In the bond market there has been quite a
steady absorption OF long-term. well-secured
bonds at or below par and Of 4 per cent. de-
nomination. indicating a pressure for in
vestment for capital contented with that
rate OF return. in spite of the higher inter
est rates on money now prevailing. This
development In bonds gave a firm undertone
90 the stock market. where the level Of
prices. in many cases. at present dividend
returns. is Inconsistent with the high inter-
dAc AuA4hS- II rs money market. also.
lenders have shown some eagerness TO get
furds placed on time at existing rates. This
desire has led to concessions for some
periods. The Central Pacific adjustment
made very large demands on the money
market on Monday, and the fact that the
demands were met. without creating a
furry. added TO the disposition Of bears 10
cover contracts In stocks. IL was argued.
also. that the insignificant volume OF appli-
cations for the government interest, offered
I'm anticipation OF maturity, indicated that
The possibility OF a money stringency was
exaggerated.
The compilation Of the Sept. Z reports Of
the national hanks OF the whole country.
shows that the loans which had been called
IA by New York banks had been put out
again by other banks In the progress OF the
cOuntrys business expansion. The New
York contraction from June 20 TO Sept. 7 OF
$46.OV1.OJo, represented speculative liquida-
fion In the stock market. while the Increase
or loans Of outside banks OF 5000 900 indi-
Gated industrial expansion. The exhibit can
not be called unfavorabIe. even from a
stock market standpoint. II intrinsic values
are considered rather than speculative
boom values. That New York's loan con-
traction since that date which amounts TO
over t0y9o4.oo has been diverted into the