The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-12-16

verable geographical locations. This pol,cv for
= community OF Interest Is expected TO bring
ouee 10 a minimum the possibility OF rate wars.
- Tar as the rank and file Of spectators were
concerned. the expectation that the nuch-ber-
aided pinch In money rates wouId NOT Ls reari1aa
was snificient TO revive the bullish spirit whicsl
= oeen dominant for some time on this az
Lohaon 5 response to our buoyant close
on Friday was encouraging. and drring the
course OF the day the foreign market bought
aJyar .s."2 shares Al the opening pronounced
a-ea.ees were made In various stocks. but de-
preston was noted In others. and IL was nor
Iii after the publication OF the bank statement
mat me advance assumed airy violence. The
statement showed an increase in surplus re-
serves OF ssz4,2Se. owing 10 a reduction in de-
post liabilities OF SIS. 376. GOO and a smaller de-
crease in cash than had been looked for. 81. sec :
=. a decline in loans OF S13.es2 SEQ was some
Mnat inexliica5le, but may have been due in
slowing was regarded with favor. and the mar
Net Decams very animated and broad. The de-
sahs We're made In the Pacihcs, st. Paul, Sugar,
Atcnlscns and Brooklyn Transit. Union Pacific
ana Northern Pacific ruled at about parity un-
vi Just before the close, when excited buying
OF the latter rushed 4 up to Tsi5, compared with
- at Fridays close. The earlier heaviDess of
the steel stocks wac dtspelled. and they closed
with small gains. Speculation left off with buy
hs very confident and the tendency upward.
stsndard OIL sold az S12 and ssl5 a share.
All the world looks to Jan. 1 as the annual
settlement period for collection and payments.
Az no other tine of the year is 50 much money
HNNNc 10 exchange and Such large demands
MADE Tor credits. Those who have their own
resources available. while not active bidders
Tor loans reduce the available credits by put
ting their money to their own use, which might
Otherwise be available for lending. The sum OF
the obligations to be met Oh Jan. 1 in the
United States is greater than ever before. A
large proportion Of these obligations are for in
terest and dividends on all sorts Of securities.
repTesenting a distribution Of earnings from
prontaole business. The fact that the sum is
the largest this year IN the country's history
IS, therefore. conclusive proof OF the country's
prosperity, but the fact is not altered that this
process or disbursement Of earnings and profits
makes corresponding requirements on all the vast
and complicated machinery OF exchange AMI
money. The special bearing OF the condition On
the stock market lies in the fact that capitalists
choose to place loans for use in speculation in
STOCKS only after every other demand for money
mas Deen fully supplied 1t Is not strange,
therefore, that the stock market Is keenly SEN
sitlVe to the showing Of the surplus reserve
item OF the banks, as the shrinkage of that item
represents the certain prospect Of the calling Of
loans and forcing to sale Of securities held with
the borrowed money. Naturally only stocks
neid Tor speculation with borrowed money are
In itself an inclination of active trade and pros
perlty. Holders Of securities who own them out
right are rather inclined to add to their holdings
az such a time than to part with them. so far as
their means Will allow.
MONEY MARKET CLOUDS.
The stock market. during the past week. has
shcwn its sentiveness to the gathering clouds
on the horizon of the money market. and the
"a bAQdhA
large offerings Of stock on the market. Bu'
ar the same time there has been a remarkable
demand for increased holdings of particular
stocks. which have made extraordinary advances
thus keeping up the tone of the general market
while the realizing offerings have been wei
absorbed In the confidence begotten by the gen.
orally prosperous conditions of business and thu
I'm this o eartica,a apT par hnyin a st9c \. line line seal Sfis
character or the interests back OF II caused tn.
the money market to be practically ignored a
times during the week, in the hope that som,
orally known to the public. But as the rumor'
o. a coming purchase of the government bond!
fund. and of special gold import operations, wer'
successfully denied or discredited, the specula
tive element took heed TO the constant inroaS
its holdings.
of the week was that in the anthracite group
led by the Fries. based on the purchase of tn,
with the threatened competition of the coal
carrying road 10 tidewate projected in the in
the independent coal operators The appearance
of the new names in the directory of the Eri'
OF transfusions in interests and representation
among the trunk lines. and led to the late move
Fries Western and Southwestern outlet. ant
as being probably included in the plans 10
out. The large buying of stocks during the wee:
thus indicated. whether for permanent holding
- - nus 4Q1 ~ AAt aI1NA
tainties of the money outlook. as 1t ~certainl,
has absorbed funds which would otherwise b
available for borrowers. Apprehension of tn
effects OF a money squeeze on stocks is meas
urably relieved by the confidence manifesto,
by holders In the intrinsic values of securities
indicating that they will not lightly be induce,
TO throw them over by reason of a decline IL
prices. But even those conditions are not
certain safeguard against disaster in the mar
kot. If the speculative commitments be yer.
extensive, so that a decline would wip
cut margins. it also would force a deiuge o.
the market. The constant digestion of profit
A M fhn nCfnnal in III tnn rnnr
ket recently insures its reasonable health, which
an uninterrupted, reckless advance would hav
| endangered.
: Some consideration was given TO a report from
Berlin of a panicky condition for mortgag
banks, which are described as equivalent TO on
| savings banks, and the Paris market is sal
to carry an overextended speculation in trac
lions. The London money market continue
unsettled on account of the indefinite knowledg
| of the governments future needs for militar,
expenditures. but the Importance of the foreigl
ioea of relief here by gold imports. Foreigl
holdings of American securities are so nue.
1 reduced that only small offerings would be ex
pected TO be forced home by a money stringency
and there is no fear of gold being drawn abroad
unless in the event of a CONFUSION in forelgl
money markets.
The market for railroad bonds has been &C
tive and broad during the week, and price
have been higher on the average. United State
twos advanced Il and the fves Il over the cal
price of q week ago.
Following are Saturdays share sales and tn
closing bid prices:
CIoefr