The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-03-08
BAD DAY in THE STREET
NOT ENOUGH BUSINESS TO KEEP THE
BROKERS INTERESTED.
Theoretical Speculation as to Effect
Of New a Bill HoIds the
Boards-LocaI Trade Better.

At New York. yesterday. money on call
was steady at 263s per cent; last loan, "a
per cent.
Prime mercantile paper. 495 per cent.
Sterling exchange was weak. with actual
business in bankers bills at s4.S5%@4.s5H
for demand and s4.s2M for sixty lays: post
ed rates, S4.ss1z@4.s4 and A.S7Q4s71z; COM
mercial bills, s4.1&@4s2A.
Silver certificates were 59% G60Z; bar sill
yer. $3.50; Mexican dollars, 47%c. Bar sill
Yer at London was 271kd per ounce.
Professional bear operators suspended
their campaign for a decline In the stock
market yesterday. The bull contingent, on
the other hand, were hampered by the
continually increasing closer conditions
I'm the money market and by the deter
mined Indifference Of the outside public.
In consequence dealings on the exchange
approached the point Of stagnation, and
the movement of prices was entirely with
out significance. Attention among money
lenders and capitalists. as well as among
stock operators. is devoted to the probable
effects Of the currency bill when II sha
become operative. AS to the volume of
the expansion Of the currency opinion is
AS6dCo III NC
at once up TO the par value of bonds at
present on deposit to secure circulation,
which is slightly over 1910, coo, 900. The 10
per cent. increase thus indicated will be
$24. 100000 AS to the extent beyond this
20 which the expansion is likely to proceed
all Is conjecture. n opinion is exceed
ingly varied. On the present national bank
capitalization, which amounts to sos. 600, 900,
a further note issue is permissible under
the law Of 1856, 000.0O, but the total amount
of the bonds to be converted and which are
available TO secure circulation is nearly
$50, co., 300. apd the additional capital,
which may be embarked in national banks
In small cities under the law makes pos
sible a further extension OF circulation as
fast as national bank capita is increased,
but this possibility Is purely theoretical.
The more the question is canvassed of the
possible effects OF the operation of the law,
the more il is perceived that hindrances
may arise TO taking out additional circula-
ton. In the first place, the constant adj
vance in the price of government bonds
may eat up the margin which would leave
a profit In circulation. There Is a question
also of the ability of the banks TO keep
their notes in circulation. They annot be
counted in the lawful money reserve re-
quired by law. and at the same time they
swell the deposit liabilities OF the banks.
In consequence unless an active demand
exists for the use of currency in hand-to-
hand transactions. the banks would derive
no advantage from keeping the notes in
their vaults and would send them in for
redemption as fast as received. On the
other hand. even il the notes keep in cir
~culation. there is the question of how far
they would serve 10 displace legal tenders,
thus facilitating gold exports. Lastly,
there Is the question OF delay in the prepa-
ration or the new ponds from purely
mechanical difficulties, a delay which may
last several months. since there is no
power in the Treasury Department to an
ticipate the operation of the law by pre-
pairing bonds in advance. With the doubt
thus involved OF the amount of relief TO be
afforded TO the money market by the OPP
Grafton of the new law and of the time
when the relief will be available transac-
tons on the Stock Exchange are much
curtailed.
Some of the buying of bonds yesterday
was attributed to capital made available
for reinvestment by the recent large sell
ing OF government bonds. Prices were gem
orally well sustained. Total sales at par
value were 81, 735.e00. United States old
tours and hves advanced y and the threes
u in the bid price. The new fours de-
clined u.
Following are the days share sales and
the closing bid prices: