The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-05-06

- h1at ut8nt y close. SUGAR moved
quite easily at a higher range than on Fri
Gay and exactly recovered that days loss
as net result. long Island was ouite
1--we End moved up to 50. but closed un-
enanged. The bonds of the company con-
unued In active demand at advancing
prices Tn statement that the Pennsviva-
MA mas acquired control found credence.
put a working agreement with the New
aork Central is believed TO be involved In
the deal The story of a service
10 run from the Long island coast was re-
sLVed in connection with the movement of
the STOCK. The reports of the mercantile
agencies failed to confirm the Impression
OF the reactionary course of prices of conn
modities and of trade activity. The cur
aeHt stagnation in Wall street is the logical
cutcome OF these conditions. Buyers are
out OF the market. but holders of securi-
ties are not yet sure that the currency
reaction Is not making for the ultimate
r Latin oil business. IL is perceived that
the recent high level of prices was such
as not only to unduly stimulate production.
Out also to decrease the consumptive de-
mand; Securities are obviously being firm
~ heid until the problem of the level of
prices and the volume Of shall
adjust itself TO afford a basis for estimat-
ing future returns. The export demand
h y manufactures continues. ana exchange
ABUNDANT supply. The loan item of the
Dank statement demonstrates that these
Oils are not being drawn. but are being
used as collateral for loans, which is an
incident or the process of placing loans
with foreign borrowers. The excess over
the preliminary estimates in the banks
gam IN cash was due to the extra days
operation with the subtreasury, which
yielded to the banks over 81. SOC. 600. or as
much as the rest of the week.
The 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
hquidation induced by that development
OVGrrQn itself &c iG fha inxyo rio Il ,,lo --.sl
speculative movements. and the bears last
week had to bid up prices to get back
STOCKS which had been sold short. This
week the market has been without the sils-
tanning force of the demand from the over
sold bears, and the arc measuring the vi
Dration of prices has been diminished. This
Is an infallible indication that the real own
ers or stocks have practically ceased to sell,
the actual demand having failed to meet
their views of values.
Inc PROFESSIONAL traders i'm stocks. in
whose hands operations have been largely
LETT, have had little success in moving
prices. The declines from this short sell
ing nave brought out little stock, and
when they bid up prices they attracted no
following to take stocks off their hands.
Inc reactionary tendencies In business
which caused the fall in the stock market
are now generally admitted. although eff
ddoorn.Ss Were PeraStentiy made at first to
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 TIL paucity of offerings of
stocks is due TO some extent to the recent
large absorption CT railroad stocks for pur-
poses of control into the treasures of the
great railroad companies. But while offer
ings 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 refiux of cur
rency to New York bank reserves from the
interior. The gold export movement, now
fairly inaugurated. is a result of this.
Ordinarily the expectation of gold has an
unfavorable effect on the stock market. on
account of the apprehension aroused that
tightness of money may result. In the pres
ent instance that effect is due to the feel
ing that the plethoric condition Of the
money market is a register of declining in
terror trade and reduced needs for money,
owing to the decreased business. The re-
cent developments In the steel trade give
| special point to this apprehension. That
the country's business is not finding full
employment for all the money in the coun-
| try is evident from the action of the money
X but the Increase in the money
supply seems TO be taken insufhciently to
account. In accordance with the monthly
4 statement Oh the OnltcQ StdteS treasury, VI
the total amount Of money In circulation in
this country, exclusive of the cash in the
treasury, the amount on May i showed an
increase for the month of April Of Sc, 27O. 957
and for the twelve months previous of $780,
| 057 ,571. 1t is true that the total bank clear
ings Of the country show some decrease
from last years level. but a table of bank
clearings for April. compiled from Brad
streets, shows that while c~learings for
| eighty cities decreased about 10 per cent.
from 1899. if New York alone is omitted,
there is a gain Of X per cent r5s. the de e
unquestionably due in large part to the
stagnation In purely speculative ~transac-
tons. If Boston and Philadelphia, which
are speculative centers also, and which
| show decreased bank %clearings, are also
omitted from the list. the increase for
the rest Of the country will be accentuated.
/ The total. clearings for April OF this year
| so per cent; with 1897 Of over 81 per cent.
and with 1892 of 40 per cent Looking to
the New York clearing house banks. 1t
appears by the last Saturdays statement
| that their loans are greater than a year
before by sl4. $40. 200, but undoubtedly large
loans to foreign borrowers are included
in this item. In consideration of the fig
ures, the increased money supply must be
| ease of money rates. In New York 6O-day
loans are only steady at a rate of 3 per
cent. In London discounts command up
/ wards of 4 per cent, and while the Bank
| of England's rate is 4 per cent. 1t is Sc
| curing higher rates for discounts. In Ber-
lin private discount rates are 4qf1a per
cent. and in Paris 3lz per cent. While
business requirements here have not kept
pace with the increase in money supply.
| foreign money markets are more or less
| stringent. and the Bank of France makes
a concession of interest. during transit,
on gold shipments. These conditions ex-
plain the gold export movement in face
| of the continuing large balance of mer-
chandise credits in favor Of this country.
4 rt-~ t-~I arIn< hos hnnn dull and has
moved in sympathy with stocks. United
States old tours advanced l per cent; re-
funding twos, when issued, "a: new fours
and ives u, and twos IL in the bid price,
Following are Saturdays share sales and
the closing bid prices:
Closing
stocks. Sales. Bid.
/ AtchiSon Ito Us
Atchison pref .................... y,No eyhs
Baltimore & Oh:o..-.-.--.-----.- 5.ozo NJ
| Canadian Pacific .........-....- =. 951s
Canada Southern ................" -. 9f12
| Chesapeake & Ohio...-........ 500 ~
| Chicago Great Western. .-:...----. 900 l5ls
/ Chicago. Burlington a Quincy. lob lz2si
| Chi, Ind. * Louisville. .......... 100 25A
/ Chi. Ind. a. Louisville pref. -. 90
/ Chicago & Eastern Illinois-.-....- 49, 13
| Chicago * ....:... m w
Chicago, Rock Island & Pacific. z,so w.
/ c.. c.. G. a ST L-..-..--.-.------. " o0tt
| Colorado Southern ...--..--.---.- 300 sHs
| Colorado Southern first pref. 100 ~
| Colorado Southern second pref. -. 10y
Delaware * Hudson.---.--...--- -. ltha
Del, Lack. & Western..--.--... IS