The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-09-17
an ERA OF LIQUIDATION
1T SEEMS TO BE IN FULL CONTROL
IN WALL STREET.
Influence Of the British and German
Loans on SpecuIation-The De-
crease I'm Surplus Reserves

1@4@aN 80 aAAh
mand and 1881 for sixty days; posted
rates. A.sa4.s4h and s4.S7a04SS: COM
mercial bills. A.s2h94.S3.
Silver certificates were 61zq62c; bar
silver. s2Ac; Mexican dollars. 4sAc. AT
London. silver bars sold At Is 15-16d an
ounce.
Exports of gold and silver from the port
OF New York, to all countries, for the week.
aggregate SS6s. lis in silver bars and coin.
and <32. 914 in gold
The imports in specie were 1851 in gold
and $16,S $40 in silver.
The imports of dry goods and merchan-
disc were valued at $,SlO,666.
The weekly statement of the associated
New York banks, issued Saturday. shows
the following changes:
Surplus reserves, decrease. s., 220, 075
Loans, increase ---.--.-----.. I,oz2.6U
Specie. decrease ......"-..-..... 2,6sl,l 100
Legal tenders, decrease. 2,263, loo
Deposits, decrease .-.------..--..--. 1,O63,5 800
Circulation, increase .............. $4,000
The banks now hold $40. SSs.175 in excess
of the requirements Of the % per cent rule.
tn F1nancier says: 1.-The two factors
outlined In this papers analysis OF the New
York bank statement a week ago, namely
the rapid expansion in loans and the reduc.
ton In cash holdings in response TO interior
crop demands-have resulted in a further
shrinkage OF the surplus reserve of the
clearinghouse institutions for the current
six days period. The loss In cash was
81. 9o4.2 200, traceable for the most part to
shipments of currency by the banks, al
though they lost In the routine operations
with the subtreasury. As an ordinary rule
the reduction in cash lowers reserve re-
Quirements 10 a certain extent by leSSening
deposits. but In the present instance loans
expanded over seven million dollars, and.
as deposits actually increased 81. 063, 500, the
reserve requirements are something like
one-quarter of a million higher than a week
ago, and the surplus shows a fall of s, 22O,-
075, bringing the total to so, S36. Us. This.
however. is $40. 100000 over the excess at this
time last year and about SIC, 500, 900 larger
than in 1898. The rise in the loan item was
much larger than expected. and. contrary
10 the usual explanations, cannot be ac-
counted for by the operations of a few
large banks. In fact, the increase is rather
well distributed. Stock Exchange business
has not been heavy enough to call for the
expansion, and commercial interests have
shown only ordinary activity. Interna-
tional operations and business with the in
terror are probably responsible for the
heavier totals For all that, present loans
are heaviest in the history of the clearing
house and deposits are nearly at a maxi
mum h"t aw won signs ra os b are sun easy ana rnns, SNOW
of the current statement, however, will
doubtless have a decided influence on the
loan at this center will not disturb the Sit
uation other than temporarily, as present
arrangements DO not favor an actual ex-
port of specie. The current balance IN IA
vor OF the United States is steadily grow
ing from month, to month, and will mount
TO much higher figures before the close of
II year.. III DdtikS II Cthl ldhlUk Jul
new circulation, the weeks gain having
been S72,00."
wALL-sTREET REVIEW.
The same factors which caused the break
in prices in Friday afternoons stock mar
ket continued Saturday. and more business
was done during the two hours of Satur-
days short session than on any full day
for months. Liquidation was plainly In evil
dence. and the bear operators added their
selling to the burden of the market, I'm the
confidence that lower prices would enable
them TO cover at a profit. The declines
which they brought about in this way I'M
covered many stop-loss orders. which had
teen placed In the market as a precau-
tionary measure by recent speculative buy
ers. The points of weakness made ii EVIL
dent that the liquidation vas largely of
speculative accounts. In Peoples Gas there
is a large short account already, and the
demand to cover was large enough TO keen
that stock comparatively steady until near
the close Otherwise, the weakness was
quite general and evenly distributed. The
to la. the coalers. grangers, Pacihcs and
trunk lines being the principal sufferers.
The steel stocks and the leading special
ties show the same range of losses. These
were extended from 2 to 3 points in Sugar
Tobacco. Metropolitan. General Electric,
Northwestern. Erie first preferred and
b. & o. preferred. The bear traders GOV.
cred in some stocks, but In others the sell.
Ing continued In large volume to the close,
which was active and weak.
The decrease In the cash reserves of 81
95f, 200 came close to the preliminary esti-
mates. showing that the national bank
notes have not taken the place of lesal
tenders to any extent in the outward cur
Tency movement. The loan expansion OF
s1,02.60 Is largely due to the operation OF
the German loan subscription. and is a re-
minder that even IL no gold goes out in
payment OF the subscriptions the demand:
on the local money market will have the
effect OF absorbing available credits. AL
though surplus reserves still stand at Over
s1O,D0.000, compared with a merely nomina
surplus at this time last year. the sequence
OF last years events was so unsatisfactory
that the parallel does not yield a feeling Of
confidence over the ability of the money
market TO meet such a rapid rate OF de
pletion as Is disclosed by Saturdays banl
statement.
The lethargy of the stock market wa.
unrelieved during the week. and the limited
activity and the narrow movements o.
prices were nothing more than ripples OF
the surface of a deep and stagnant pool
The puzzled brokers have seen one ans
another assigned causes for the torpidit,
world persists in its abstention from an,
dealings in securities. Last week the Yer
mont election and this week the Main'
election were expected by the sanguine 4
start the market. But on neither occasion
was any effect perceptible beyond a hal
hour OF professional trading. Some posi-
tive depression has resulted from the dec
Iaration OF the anthracite miners strike
hut the effect on prices, even In the groul
OF coal-carrying railroads, has been small
While the possibilities of harm To value
threatened by the strike are fully recog
nized there is an optimistic feeling i'm Wa
street that the disaffection either will no
spread far or will be adjusted before 1
goes 10 extremes. The extensive propert
damage I'm Texas and the naturally de
pressing influence OF the appalling disaste
TO human lives had astonishingly littl
effect on prices
FAVORABLE NEWS IGNORED.
Favorable Developments are equally ig
nored. Current railroad earnings, thougI
in some cases not fully up to last year
high level, ere by no means so much i'm
paired as was apprehended when the duI
period OF the stock market began. Man
railroad systems show handsome increase
ever last year In spite OF the larger ex
penses Of operation. The renewal OF tn
demand for iron and iron products Ia
measurably relieved apprehension over tn
future of that important Industry. and IN
urgent demand for cotton makes up in IN
money return for tAe shortneSs of the cror
Partly by a process OF elimination OF thes
various supposed causes OF dullness Wa
street has reverted 10 its earlier apprehen
sions over the autumn money marke'
These had been lulled by the continue
apparent ease OF money. the large increas
I'm the currency by bank note expansio
and United States treasury disbursement
the abundance OF money reported In IN
farTcr nonEa fnHfoaffnr a small aar,o-