The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-01-01

of New York, were So. Us in gold and $135566
I'm silver. The exports, for the same period.
were $S96,S4S I'm silver bars and coin, and
81. go. 200 In gold
The imports of dry goods and merchan-
disc at the port OF New York for the week
were valued at -, 450,642.
The weekly statement Of the Associated
New York banks. issued Saturday. shows
the following changes:
Surplus reserve, increase .........-.. $7s4, 600
Loans, increase .....-......-..--'--..- oao'o0
Specie, decrease ...................... 4oo,zU
Legal tenders. increase ..-........ 1, l65,OOO
Deposits, decrease .......-............ 34S,SOO
Circulation, increase ......--.....-... 40,sU0
The banks now hold sl1. 16S.070 in excess of
the legal requirements.
The Financier says: 'The statement of
the New York clearing house banks for
the week ending Dec. so shows a further
gain OF S7S4.000 in surplus reserve, the total
now standing at $11,16S,075. AS was the case
during the previous week. all the cash
gained by the banks went to swell excess
reserve. since deposit requirements were
lessened by the shrinkage in that item.
The statement is favorable and indicates
that the influx of funds from the interior
in the past six days has been quite
gold to Europe by Saturdays steamer does
not count In the current exhibit, but the
exports of a week ago figure to the full
extent. The outward flow, therefore, has
been almost made UP by subsequent re-
ceipts, and the gain in legal tenders rep
resents the surplus shipments from the in
terror. The banks have maintained their
position far cash is concerned, but
they have added little TO their loaning
capacity. If the experience of January
last year is a criterion. heavy receipts for
the next few weeks may be expected from
domestic centers. with the difference that
whereas last winter the New York banks
retained all the money that was forwarded
them, they must now provide for the de-
mands that Europe is making for Ameri-
can sold. Still. the present arrangements
with the treasury are such that there will
be no further drain OF domestic funds into
government vaults an operation that takes
money out or use even more effectively
than gold exports. The continuance of the
present export movement is important, in
that IL determines the extent to which the
banks here can expand their loans. and
above that the rates which they will OBJ
tain on them. AS the same factors incl
dent to the transfer of funds which mark
the January period in the United States
are operative abroad, conservative bankers
are figuring that the return flow of money
from various centerS into the great for
eign banks will tend to make rates easier
abroad and affect exchange quotations to
the point OF stopping exports of gold from
New York. If this is the case, the banks
here will probably recuperate their re-
sources. or at least they will be in po-
sltlon 10 expand their commitments. AS Ii
Is. loans are now almost stationary, while
deposits are being reduced No one looks,
however. for the burst of expansion that
marked the opening OF the great rise in
speculative prices in January last year.
STOCK MARKET RESERVE.
The transactions of the New York Stock
Exchange Saturday were more or less in
terrupted by the holiday frolics of the
brokers on the floor. but there was suffi-
cient trading in evening up accounts for
the close of the year to make quite an ac-
tive market and some irregu,arity III
prices. The Baltimore & Ohio stocks, after
their upward leap OF Friday. were conspic-
uously affected. the common falling back
nearly 21z and the preferred over a point
The most active or the specialties, inchId-
Ing sugar, the tobaccos and the New York
city traction stocks, were also inclined TO
react, although the undertone was strong
and there was a disposition to hold stocks
for the expected demand after the first of
the year. The expectation of this demand
Is based on the sudden relapse in the mon
ey rates at all the leading financial GEN.
tiers, the London discount rate railing be-
low the bank rate Saturday and the Ber-
lin rate showing a further decline. This
gives ground for a hope that the export
movement OF gold will be brought to a
4 stop. X Is possible. however, that the re-
based on expectations of further supplies
of gold from this country. That being the
case bankers believe there may he recur-
rences of money stiffness in January. The
days trading demonstrated that the level
of prices still offers inducements for in-
yestment buying. The sales of small lots
OF less than 100 shares continued even more
conspicuous than on recent days All
grades of stocks were embraced in this
demand down 10 the nondividend paying
stocks with only remote prospects of re-
Ia gf7or ina
change was decidedly bullsh. The constant
striving of the financial world TO anticipate
events is responsible for the paradox of
lively recovery in prices of securities and
easy money conditions in the las week Of
the year.
This tendency of the financial world is
responsible for the weeks events In a two
fold sense. The preceding weeks panic con-
ditions were the result OF preparation for
the money pinch which has long been
looked for at the close of the year. owing
TO the extraordinary magnitude of the
Jan. disbursement this year. That week S
forced liquidation overdid itself. as such
violent movements are certain to do, and
Wall street found itself Unexpectedly flush
of funds. with prices OF securities at the
lowest level of the year: and practically
universal conviction that the beginning of
the new year will mark a period of easier
money, with the regular reflux of funds
from active use I'm the business worlds
financial centers. The speculative world
therefore. executed abrupt about-face
and rushed TO buy stocks to anticipate the
good times supposed TO De coming with the
new year. The demand was particularly
urgent from the short interest. which had
overextended itself during the week of
panic, and worked some violent recoveries
In the stocks which had suffered most Sc
verely from that weeks furry For in
stance, Metropolitan Street-railway, which
closed on Saturday. Dec. 16. at 167 sold in
the panic at 1f7 and rallied last week 10
lisa which. allowing for the dividend de-
Quoted. is equivalent TO over $50. In fact.
the general level OF prices has recovered
20 about that OF Saturday before the panic.
TABLE OF SHRINKAGES
From the speculative standpoint, doubts
have arisen whether the violence OF this
recovery was not excessive. and there has
been realizing by holders who bought i'm
the panic. either TO sustain prices or In a
hunt rsr bargains, and renewed short sell
Ing "a the recovered high level. The fol-