The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-09-16
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 in Surplus Reserves.


At New York, Saturday, money on call
was nominal at 1911z per cent.
Prime mercantile paper at 1854 per cent.
Sterling exchange was steady, with actual
business in bankers bills at s4.S65s for de-
mand and s4Ssh for sixty days; posted
rates, s4.S494S41z and s4s71zq4.SS: COM
mercial bills, 81. S21sd4.S3.
Silver certificates were 61zQ62c; bar
silver, 62@c; Mexican dollars, 49Ac. 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 $S69, lis in silver bars and coin,
and So ga in gold
The imports in specie were s17,6S7 in gold
and $16,S4O in silver.
The imports of dry goods and merchan-
disc were valued at $S,S10,666
The weekly statement of the associated
New York banks, issued Saturday, shows
the following changes:
Surplus reserves, decrease. S, 22o. 075
Loans, increase ....................... l,O22,bCO
Specie, decrease ..-..-....-.-........ Z,o9l, lOO
Legal tenders, decrease-............. 2,26S,1 100
deposits, decrease ..-.--............-. 1,OoS,0OO
Circulation, increase ................ 81, 900
The banks now hold SO, SS6,175 in excess
of the requirements of the % per cent. rule.
The Financier says: 1.-The two factors
outlined in this papers analysis Of the New
York bank statement 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
clearing house institutions for the current
six days period. The loss in cash was
$i954, 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 ordinary rule
the reduction in cash lowers reserve re-
quirements to a certain extent by lessening
deposits but in the present instance loans
expanded over seven million dollars. and.
as deposits actually increased Sl,065,50O, the
reserve requirements are something like
One-quarter of million higher than a week
ago. and the surplus shows a fall of So go
015. bringing the total to $20, $685. l75. This.
however. is $20.5 900 over the excess at this
time last year and about S16,5O000O 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 Tor the
expansion. and commercial interests nave
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 maxi
mum, money rates are still easy ana snow
but few signs of hardening. repetition
or the current statement, however, Will
doubtless have a decided influence on the
market The placing of new German
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 VIII mount
TO much higher figures before the close OF
the year The banks are still taking out
new circulation, the weeks gam having
been 1872.
wAIL-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 or Satur-
DAVIS short session than any fun day
for months. Liquidation was plainly IN evil
dence and the bear operators adueu tneir
selling TO the burden OF the Market IN the
confidence that lower prices would enable
them 70 cover at a profit The oechnes
which they brought about IN this way un;
covered many stop-loss Orders VIII, 1870,
been placed in the market as precau-
tionary measure by recent speculative puy
The points OF weakness mace IL eV ~
dent that the liquidation was largely vi
speculative accounts. In People Gas tnere
Is a large short account already, ana the
demand TO cover was large enough 20 keep
that stock comparatively STEADY uhti heai
the close Otherwise, the weakness W.
quite general and evenly distributed Inc
principal railroad stocks are down from
10 Is. the coalers. grangers, Pacincs aIlu
trunk lines being the principal sufferers
The steel stocks and the leading speciai-
ties show the same range or losses iheSe
were extended from TO points In sugar
Northwestern Erie first preferred and
Il. * o. preferred. The bear traders Gov
cred IN some stocks. but I'm others the sen
Ing continued In large volume 10 the Close
which was active and weak
The decrease IN the cash reserves OF -;
sSf20o came close to the preliminary esl
mates. showing that the national o@n-