The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-06-10

dIIOK6InGT
factory The weeks additional loan expan-
sion OF 70. 4S5,oo0 must clearly be attributed
10 renewed foreign demands on our credits
rs Inmates OF the future ease of the local
money market have been predicated upon a
cessation of this foreign demand. The
acuteness of the stress for funds in Berlin
seems TO be the cause OF the new demand
II THIS loan extension to foreign borrowers
snouiu continue into the period when New
ork banks are called upon TO finance the
crop movement, now not far distant
rapid dissolution of the surplus which was
reduced Saturday to sls.S74.2 go would neces-
saa Thy result Fridays additional call for
so.vW,Ooo of government deposits will be
followed by three other calls OF the same
amount, thus taking up the whole OF the
s-o.UV,VcO necessary TO redeem the govern
ment twos, which are called for Aug Is.
Inese bonds are in the names of the banks
ana are on deposit as security for circula-
tion IL Is opti3sl with the banks when
tney shall be presented for redemption.
Until they are redeemed the calling OF the
government deposits from the banks will
continue 10 act as drain on the money
market The market closed steady on a
covering movement by room shorts
Prices for stocks are considerably lower
for the week, and the speculative mood
continues depressed and respondent over
the uncertainties in the outlook, and the
fear of decreased profits I'm business and in
oustry is resulting I'm a drain in values II
Is TO be considered that If this fear were
backed by conviction there would be liqui-
cation In force and active speculation on
the bear side. On the contrary liquida-
ton has been restricted TO inappreciable
dribblings for the most part, and the pre-
Vaillng mood is one of apathy and indif-
terence. The changes for the week have
been accomplished on a very small volume
OF business. Trading on the Stock Exchange
has approached the point of absolute stag
nation. Holders seem content to hold for
the present, hoping for better things, even
With no present demand for their stocks.
incidents n a ha On, ha
side OF depression, and the natural reaction
from last weeks fictitious rise has been
made in the same direction. The covering
or short contracts, which was the real
cause Of that rise, left the market techni-
cally weaker. The reduction of the short
interest Withdrew prop from the market,
and the taking on of long lines with the
advice to take profits in its train.
FOREIGN INFLUENCE.
These causes exceeded the dominant in
fiuences, which were the acute stage de-
veloped in the complications in China and
growing fears of failure of the spring
wheat crop in this country. The weeks mar
ket has shown itself sympathetic to foreign
stock markets throughout. This is more
especially due to the fact that some sup
port for American securities was looked for
with the relief attending the fall OF Pretoria
and the security of the Johannesburg gold
lliUeS. 1De New OeNelOpIle0l III CDlId 0dS
effectually counteracted this expected in
huence, and the expectations of easier
money conditions abroad have also been
disappointing. The Bank of England. by
refraining again from reducing its mimi
mum discount rate proclaimed to the finan-
cial world that ii preferred TO conserve its
resources for some future contingencies.
The Bank of France offered a similar in
timation by rather drastic loan contrac-
ton and an extensive retirement of note
circulation, Notwithstanding substantial
gain of cash resef>os for the week. The
Berlin boerse has beer in a condition of
panic through the forced sal> of iron shares
to pay off loan obligations. American Sc
curities, therefore, have received no sup
port in foreign markets, and the selling Tor
foreign account in New York. though small,
has been an effective element of depression.
The decentralization in foreign iron markets
has been due to the course OF iron prices In
this country, which promises effective COM
petition for foreign iron manufacturers IN
their own markets
The cut in iron prices announced here
had little direct effect on the securities,
as it has been discounted and is believed
to be step toward attracting buying 10
meet the well-known consumptive require
ments. No one expects buying orders Will
be placed to meet this requirement until
it is demonstrated that the recession in
prices has been ended For his reason
plan has found advocates in the iron trade
of a sharp general cut in the prices TO Well
below the price OF production, IN ORDER 10
accumulation. The consequences involved
of throwing out of business weaker con-
Germs, the reduced employment for labor
and corresponding train of circumstance
are not viewed with equanimity In Wall
street, even while the desirability OF
stable basis of prices in the iron market
is fully. recognized.
The Importance as a basis of prosperity
of good crops is brought sharply into prom
inence by the critical conditions existing in
the spring wheat belt. Pessimists have al
ready given up the Northwest wheat crop
as a failure, and point to the necessary
results in reducing the buying power of the
community, the decline in railroad earn
ings, and so on through the complicated
channels of trade. These lamentable predic-
lions have not had great effect. as rail-
road earnings thus far are we'll maintained
and the generally conservative course
which has been pursued by the railroads
of making necessary outiays during the
period of prosperity with view TO pre-
pairing the way to retrenchments in Dos
sible period of adversely afford bu' -ress
to confidence in the stocks of these prop
critics. The falling off in traffic of the rail-
roads. and the disputes arising at various
points over competitive freight and passen-
ger rates, have, nevertheless, weighed on
the railroad list. The placing of Atchison
and the maintenance of the quarterly divi-
dend on Sugar at the ~ per cent. rate
only temporarily strengthened those stocks
The reductions in the openting expenses
net earnings lessen the effect of the in
creased dividend. While the American
Sugar Refining Company is admitted TO be
living down in peace with it's competitors.
only part of the competitors are inside the
Sugar Company, instead of all of them, as
on previous similar occasions. The stocks
have therefore been under pressure. The
continued refux of money to New York,
while offering means for cheap specula-
ton. discourages il because it is an index
of declining trade and business.
The bond market has been dull, but
prices have been remarkably steady. United
States fives declined IS; old tours. coupon,
-: old tours. registered, Is, and refunding
twos when issued. threes and new fours, Il
In the bid price. The twos advanced Is.
Following are Saturdays share sales and
the closing bid prices:
Closing
Stocks. Sales BID
Atchison ACKNOWLEDGEMENTS 3.l95 24%
Atchson pref ...........-...-.-.. 10, LOO ia
Baltimore & Ohio................... 1850 I6A
Canadian Pacific ................... ~
Canada Southern .---.--.---- 81
chesapeake & Ohio. ............... I140 26+
Chicago Great Western. 500 IN