The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-12-06
CONTRACTION in LOANS
III Is FEARED AT AN. EARLY DAY
IN WALL STREET.
business Demands Are Running
Ahead of Resources-Local
Trade i'm Good Tone and Volume.

AT New York. yesterday. monty on call was
steady at 4a5 per cent. last loan 4 per cent
Prime mercantile paper. 444A per cent
Sterling exchange was barely steady, with ac-
tual business in bankers bills at A-S5h for de-
mand and s4.s1S for sixty days; posted rates,
81 s2s and s4.S61s; commercial bills. Sis0zq4S1A.
silver certificates were s4Qs5c; bar silver. s4Ac;
Mexican dollars, 5Oasc. Bar silver rose to
- i3-1sd an ounce in London
Yesterdays market somewhat reversed the
speculative position OF Tuesday. The early part
OK the day showed a continuance of the reac-
tionary tendency. London took its cue from
the depression here Tuesday and sold the Ameri-
cans. offerings from that source amounting TO
some $4,000 shares. The professional traders also
continued bearish and sold stocks short. but 1t
became obvious during the course of the day
that there was no urgent pressure OF liquida-
ton. The decline in prices brought no large Of
fers and the bears were disinclined on this &C
count TO pursue their campaign. Consequently
they bought TO cover their contracts and turned
the market upwards. The developments in the
money market. which is the true index OF speeu-
Iation at present, continue against the presump-
ton OF active speculation Call rates went to 5
per cent. again. and the movement of currency
to the interior continues undated. SEQ. 900 being
transferred through the subtreasury to Chicago,
anc s275, 900 to New Orleans. This rate Of de-
pietion Is far too large TO permit of any extern
siye credit expansion BY New York INSTITUTIONS,
and youlS not require a long continuance 10
force a sharp contraction OF loans. The move
ment Of currency TO the interior. which has con-
tinued on a large scale now for the best part Of
a week. and the very large volume OF interior
,opk clearines. are a plain indication of the
active need for money through the country An
active money market IS expected between now
and the first OF the year, after which the jan
nary disbursements are expected to make for
81 sier money. y loan contraction by New York
hanks. therefore. seems highly probable, and the
erect on the stock market will be measured by
the financial resources Of those holding stocks.
nal uauidation OF weak accounts is an impor-
tant safeguard against such a situation. The
strong points in yesterdays mfr-ket were among
fSe Iowprsced minor stocks, the Fries. Peoria
4 Eastern. the Wabash stocks. the st. Joe and
Sra0d Island stocks. and others of that class be-
ing conspicuous. Atchison preferred and Mis-
seslri Pacific were also strong, and Brooklyn
Transit and the steel stocks We're in demand
sugar was very feverish, and after rallying
from early weakness 10 about "a point over Tues
day3night. II lost the gain again in a few min
uses' trading. The Amalgamated Copper shares
had an extreme decline Of a. before showing
any resistance. hut they strongly recovered over
baif the loss. Standard oil shares made a new
record by going to $50 and $500.
Husiness was better sustained In bonds than
In stocks. and some Important gains were shown,
Total sales. at par value. wers $,025.0 00. United
states refunding twos declined &c, and the
threes and fours and hves a per cent. on the last
call.
closing bid prices