The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-02-26

associated New York banks shows the fol-
lowing changes:
Surplus reserve decreased. 4337,125
Loans increased ..................... II, O35 800
Legal tenders decreased. .......... 1925 400
Deposits increased ................... 5S4S, 500
Circulation increased .............. 674,700
The banks now hold s1967S, $50 In excess of
legal requirements of the Is per cent rule
The Financier says: 'Afhe New York
bank statement for the week ended Feb. "a
is marked by a continuance of the upward
movement in loans. the expansion since the
last previous statement having been S1l,-
0s5. 800. This makes the total increase since
the opening of the year 81, 766, oOO as COM
pared with a rise Of little over $40, co., 900
for the same period last year. Loans now
In fact. are within s13OoO,OO0 of the total
reported on Feb. IS a year ago, although
they are smaller by $45, 100000 than the max
imum record attained on March 4, 1892 The
net deposits are S70,000,000 less than at this
time last year. The movement of surplus
reserves now Is not different from that
noted I'm February, 1892 and as the two
chief factors in swelling the available cash
in New York banks have been eliminated
In the stoppage of treasury deposits and
the resumption of interior demands there
seems no likelihood of statements of a diff
ferent character for some time to come.
In other words, with the loan commitments
rising and money going out of the New
York banks as at present, the surplus re-
serve will be subjected to a drain that will
reduce ii to a smaller figure than now re-
ported. But in spite of this obvious pro-
cess of liquidation of excess funds. money
as yet shows little sign of responding.
rates being only nominally higher. The
heavy loan contracts may have been made
in anticipation Of a harder market later on.
During the week just elapsed the banks
lost nearly three millions in cash to the
treasury and the interior. No detailed ex-
PLANTATION can be made of the cause 'of the
continued rise in loans. Stock market con-
ditions hardly warrant the repeated adj
vances of $4,000 900 and per week.
Commercial activity doubtless has had
more or less to do with II. A fact that
seemingly escapes attention is the growing
circulation of New York national banks.
Since Jan. the increase here has been
almost 81, 0O0, 600, and the gain over last
summer is about $4.O00,000.
THE WEEK IN WALL STREET.
The general speculative sentiment as
reflected In the New York stock market
was good deal obscured Saturday by the
Generalization in Third-avenue. Active
trading in a stock with a resulting drop
In the price of over ten points is bound to
have considerable effect in a narrow mar
ket, however peculiar and individual may
be the cause which induces the selling. A
rather violent break in Tennessee Coal had
the same tendency. AS a matter of fact
traders were disposed TO sell stocks on the
general outlook, and especially on the re-
ports from trade authorities that prices of
materials. especially the metals, were
yielding There was also the fear that the
cutting of grain rates on the trunk lines
would spread TO other classifications, and
some rather striking declines in the volume
OF bank clearings, compared with the cor
responding period of last year. Reports
by telegraph to the Financial Chronicle
for five days show large shrinkage. not
only at New York, Boston and Philadelphia,
but at Baltimore. amounting to nearly SO
per cent, and at st. Louis of nearly per
cert New Orleans, however, expanded its
ciearings over AZ per cent, Chicago 10 per
cent, and other cities outside the seven
leading cities So per cent. Railroad earn
fngs continue to show large increases,
sixty-one roads which have already report
ed for the second week in February show
Ing an average increase OF 80. 40 per cent
over the corresponding period of last year
Strong returns were made during the day
for the third week in February by the ST.
Paul. Hooking Valley and Rio Grande
Western There was good buying of some
of the coal-carrying railroads stocks, and
q railying tendency in the market. which
was checked somewhat by the renewed
weakness in Third-avenue and the New
York utilities in the final dealings.
The decrease in cash shown by the bank
statement was very to the estimates
but the superstition that the large rate OF
loan expansion had been checked proved
erroneous. Chiefly by reason of the addi-
tional loans of Sl1,0S59O0. the surplus re-
serves are further depleted to the extent
OF s4.331,l 25. There can be no doubt that
bankers are influenced In their liberality
I'm extending credits by the possibility OF
currency imitation authorized by the pend
Ing financial bill. Sufficient attention has
teea called to the fact that the bill author
ICES extension of bank note circulation
to the amount of the par value OF bonds al
present deposited 10 secure circulation
which would be a 10 per cent. increase
But not so much attention has been giver
TO the fact that bonds at present deposited
to secure circulation amount to only $50,
SO.lN. while national banks capita
amounts to $606. 0.000, which fixes the linn
its OF the bank note circulation permitted
The refunding plan provides for the issue
of new bonds to the amount of the present
premium on outstanding bonds, which wit
be available for deposit 10 secure additional
circulation. The additional profit afforded
on circulation by the new provisions, IL 1:
believed will invite bank note expansion
TO the limit authorized, unless the premium
on the new bonds becomes excessive.
MARKET WAS PROFESSIONAL
The breaking of the Stock Exchange
week by a holiday has had some influence
In curtailing activity In the securities mar
ket Professional spectators are Away:
disclined TO enter upon commitments wher
a period of suspension of trading is ap
preaching. with possibilities of events
occurring which will materially affec
values But this motive is by no means
sufficient TO account for the persistent dull
ness OF the stock market. in face of tn
financial bill. Increased business activity
expanding industries, high level of earn
fngs for railroads and industrial corpora
TONS all make for higher values of Sc
curities. Either the dividend returns ar
assured OF an increase. I'm the case o
stocks. or the payment Of a fixed return
is given additional security, as in the cas-
of mortgage bonds. But from other point
of view the activity and prosperity of gen
eral trade operate against an advance II
the price OF the securities. The demand 70
money for mercantile uses for Inaugural
ton OF new enterprises encroaches on tn
surplus reserves OF financial institution
and leaves no Accommodations of idle fund
TO be eagerly offered for employment II
speculation In securities. Pursued 10 IL
logical conclusion. active trade and indus
trial development tend To discourage ever
investment buying OF securities as well a
pSrely speculative buying. because an ac
tive mercantile demand for credits, by rails
ing the interest rates. may attract tn
transfer of funds from fixed investment Il
securities TO use In the money market
That was what happened 10 our securitie
In foreign markets last spring. when on
demand on foreign money markets for set
Element Of our favorable trade balanc