The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-05-07
WALL STREET AWAITS ADJUSTMENT
OF SUPPLY AND DEMAND.
Ease of Money Market and It's ReIa-
tion To Cole Exports Local
Trades Good Outlook for May.
AT New York Saturday money on call

E4poIlS d SOiu III SlbcI lIOin II put
of New York to all countries for the week
aggregate sl.O4o.Ssl in silver bars and coin.
and s2.s92.s15 in gold.
Imports of specie for the week were s24.-
So in gold and s14e.5S5 in silver
Imports OF dry goods and merchandise
at the port of New York for the week
were valued at $lo,Ss7.S57
The weekly statement of the associated
New York banks. issued Saturday. shows
the following changes:
Surplus reserve. decrease .......... 81. 095. 500
Loans, increase ......-............. 13,221,4 400
Specie, increase ............... 900. 900
Legal tenders. increase ........... 1.166,500
Deposits, increase -..........-...-.- 1882 500
Circulation, increase ............-. 5000
The banks now hold SIS. 9S, AS I'm excess
of the requirements of the Is per cent.
rule.
The Financier says: "The New York
bank statement for the week ended May
5 is surprising in several details. To begin
with, no local cause can be assigned for the
expansion of s13.22l. 400 in loans and the
corresponding increase of s17.0 900. 900 in de-
posts. although 1t is TO be said that at
least 100000 OF the loan increase was
brought about through technical operations
attending the completion of the consolida-
ton OF two large banks. The IS. 100000 or
over still unaccounted for is larger than
the events of the week seem to have called
for. but with money here lower than at
ai.y point in the world it is not unlikely
that the banks are taking advantage of an
opportunity to increase profits by extend
ing the scope Of their operations abroad.
a course that has been resorted to before
under similar conditions. This is the theo-
reticai view. AS a matter of fact. a detailed
analysis shows that the loan increase has
been scattered through a large number of
banks. The gain of over $l7, 600, 900 in de-
posits is due to the loan expansion and
receipts of $3.0O0,000 in cash from the in
terror. The rising deposit total called for
A.273.200 increased reserve, so that the eff
feet of the interior receipts was neutraliZed
and 81 95.s 500 was taken from previous ac-
cumulations, bringing the present excess to
S15.g 7s.4 75. Their is warrant for the asser-
ton that the banks did not gain as much
from the interior last week as the figures
indicate, and they actually lost TO the
treasury on gold exports. The specie al
ready forwarded on this movement
amounts to 300, 900, and while a decline in
reserve may operate to cheek the outward
terest rates should advance. A factor in
the money market often overlooked in
this connection Is the ability of the trust
companies to loan at minimum rates. The
controller, In his call for official statements
last week. asked for a specification of
trust company and savings bank deposits
LL AdtlOtAdA hAh anu ~ 10 hhOWh tlldt
these institutions are carrying at least
$50 900. 900 in national banks. The state
banks also report heavy trust company de-
posits- The loans and deposits OF the banks
at The present time are over 800. OOO, 900 in
excess OF the averages at the opening of
the year, while reserves are only A.OO0.0DO
higher. Continued receipts from the in
terror are looked for for some time"
WALL STREET CONDITIONS.
Whatever deductions are drawn from the
stock market must be almost wholly mega
tive, for Saturdays market continued near
the level of stagnation. A slight flip was
given to the opening by the higher level
of prices In London. But the room traders
closed their contracts before the days
end and brought the level of prices back
near TO Friday nights close. Sugar moved
quite easily at a higher range than on Fri
day and exactly recovered that days loss
as a net result. Long Island was quite
active and moved up TO 50, but closed I'M
changed. The bonds of the company con-
tinued in active demand at advancing
prices. The statement that the Pennsylva-
ME h mas acquired control found credenee:
York Central Is believed to be involved In
the deal The story of a steamship service
TO run from the Long island coast was re-
vived In connection with the movement of
the stock. The reports of the mercantile
agencies failed to confirm the impression
or the reactionary course of prices OF COM
I'll II IL lIdQe acIlFlIy. Inc cur
rent stagnation in Wall street is the logical
outcome OF these conditions. Buyers are
out or the market, but holders Of securi-
reaet sae ~ not no yet m sIre tn Fat t ne currency currency
health or business. Ii Is perceived that
the recent high level of prices was such
as not only to unduly stimulate production.
but also TO decrease the c~onsumptive de-
mand- Securities are obviously being firm
ly held until the problem of the level Of
prices and the volume OF consumption shall
adjust itself TO afford a basis for estimat-
ing future returns. The export demand
for manufactures continues, and exchange
bills against manufactures are in quite
abundant supply. The loan item OF the
hank statement demonstrates that these
bills are not being drawn, but are being
used as collateral for loans, which is an
incident OF the process of placing loans
with foreign borrowers. The excess over
the preliminary estimates in the banks
gain In cash was due 10 the extra days
operation with the subtreasury. which
yielded to the banks over 81. S00,0 00. or as
much as the rest OF the week.
Inc stock market has given evidence dur
ing the week of having reached an adjust
ment 10 the new conditions presented by
the unexpected developments In the iron
and steel trade of three weeks ago. The
liquidation induced by that development
overran itself, as Is the invariable rule with
speculative movements. and the bears last
week had to bid up prices TO get back
socks which had been sold short. This
week the market has been without the sus-
tanning force OF the demand from the over
sold bears, and the arc measuring the VI
bration OF prices has been diminished. This
is an infallible indication that the real own
ers OF stocks have practically ceased TO sell,
the actual demand having failed TO meet
their views of values
The PROFESSIONAL traders in stocks, in
whose hands operations lave been largely
left. have had little success I'm moving
prices. The declines from this short SELF
ing have brought out little stock, and
when they bid up prices they attracted no
following TO take stocks of their hands.
The reactionary tendencies i'm business
which caused the fall I'm the stock market
are now generally admitted, although ef-
forts were persistently made at first to
deny them. But the dull ana sluggish stock
market reflects the feeling that the set
back In business has been fairly discounted.
The feverish activity in the steel indus
trials has subsidized, but that group Is still
sensitive and shows quick response TO any
Developments. The paucfty OF offerings OF
stocks Is due to some extent TO the recent
large absorption OF railroad stocks for pur-
poses of control into the treasures of the
great railroad companies. But while offer
fngs at the present level Of prices are
small. the demand has practically ceased.
Buyers want more light on the future
course Of business before taking on stocks.
CAUSE OF PERPLExITY.
One large cause OF perplexity over the
outlook is the present large refux OF cur
rency TO New York bank reserves from the
interior. The gold export movement, now
fairly inaugurated. Is a result OF this.