The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-02-11
WEEK IN VAIL STREET.

- In WALL S16EEI.
The movement of prices on the New York
Stock Exchange had little significance Sat-
urday. as operations were largely confined
to the closing UP of contracts by the pro-
fessional element There was a continual
ton of realizing sales at the opening, in
spite of the tranquility with which the
latest news from South Africa seemed to
be accepted by the London market. The
rally in the market after the bank state
ment appeared made it evident that part
Of the selling had been for short account.
In anticipation of an unfavorable state
ment- The rally did not mean necessarily
that the statement was considered favor
able. but simply that the bears desired to
cover their short contracts before the two
holidays pending. There was raher acute
at times in ST. Paul, Missouri
Pacific, Western Union, Burlington and
Sugar. The movement of prices was rather
e~rratic, but the net changes on the day are
small and mixed with the majority on the
side of losses. The closing of the market
was strong, at a rally on the short cover
ing. AS a matter of fact, opinion on the
bank statement was confused and per-
picked. The enormous loan expansion
caused amaZement. In no single week
during all of last year did the loan expan-
sion reach $4,000 900. In the week ended
Feb. 4, last year, loans were increased $l5,-
$4,000 during the active lotation of new
I'LL us q OA Tic III lull II
This compares with 81, 152, 400 increase this
week. Since Jan. 10 loans nave been in
creased $44. 496, 900. compared with an in
crease of $3S. 197. 300 in the corresponding
period of last year, when speculation and
company fiotation was in full tide. 1t is
suggested that some of the deposit ac-
counts, which passed from the banks to
the newly organized trust companies dur
ing the course of last year. are now coming
back to the banks. There is nothing In the
regular course of business or speculation to
account for the recent great extension in
the loan item of the clearing house banks.
Returns of bank clearings by telegraph for
five days to the Financial Chronicle show
a sharp falling of at the four principal
Eastern cities, and increases at Chicago
and st. Louis in considerable proportion,
while at New Orleans the increase over
last year is nearly 46 per cent. The in
crease in the South is doubtless due large
ly to the activity in the cotton market and
is suggestive of the future demand upon
New York for funds from that section. But
the clearing house returns only serve to
perplex the problem of the phenomenal
loan expansion of the New York banks.
The upward movement of prices, which
found its inception last week in the metal
stocks, broadened out this week so as to
embrace pretty much the whole list OF Sc
curities dealt in on the New York Stock
Exchange. By the middle of the week the
advance had apparently reached its cul-
mination, and on Wednesday afternoon
the bears succeeded in topping over the
overextended long account of spectators
with insufficient resources and a reaction
ary tendenc suPervened. Such reaction
Inevitably disc0urageS outside interest In
the market, and business fell back into the
hands of professional operators of large
moneyed interests who have to do with the
ontro and detailed knowledge of the af-
fairs of the great corporations. The move
ment OF the market has been almost
wholly due to technical causes, the general
news OF business being, with but few ex-
ceptions, favorable n availing not a little
TO maintain q firm undertone to the stock
market even while it showed eakne due
TO technical causes. The advance in prices
was viewed with more or less distrust, ow-
ing to the palpable manipulation which
accompanied II. Professional bull people.
to be bidding up prices of their holdings,
in accordance with a well-recognized prin-
cipIe of action among professional opera
tors. 1t is one OF the strongest propensi-
ties OF human nature to desire to possess
something that Is seen TO be advancing in
nrjce: so that a pool of stock operators,
after buying thousands Of shares of a
stock and then advancing the price by bids
for smaller amounts of stock by successive
STAGES. may find sufficient demand for the
stock aroused among the outsiders to alb
serb all the pool holdings at the higher
level. Needless to say, such an operation
is assisted by any authentic good news re-
earding the particular stocks affected. or
regarding the general speculative prospect;
.hings TO come. the latter being even more
efrectfve. with a reckless class of specuia-
tors. than the sober and reliable business
facts.
TT wEAKENs THE MARKET,
But. however true the news may be which
accompanies a rise. the completion OF the
operation above described leaves . market
IN 4 we6kensd condition tochn1ce1ly.