The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-01-22


all countries for the week were sf7e.o77 in
silver bars and coin and sl,O79.Si2 in gold.
Imports for the same period were s29547 in
gold and $72,s2l in silver.
Dry goods and merchandise imports at
the port of New York were valued at s10.-
045.015 for the week
The weekly statement of the asso GATED
New York banks issued Saturday, shows
the following changes:
Surplus reserve. increase S7.s7s. 325
Loans, Increase ........-............. 4,579,100
Specie, increase ..................... 7,341, 700
Legal tenders, increase. 4,194.300
deposits, increase .......-........-. lo'SSD,a VO
Circulation, decrease ................ 2l,SOO
The banks now hold s2I.1S5.S75 in excess of
the requirement of the IS per cent. rule
The Financier. in its issue of Saturday,
says: The New York clearing house banks
added no less than s11.5ss.OoO to their cash
holdings last week. bringing the total cash
on hand to s2l5.5 ZOO an amount larger
than they have reported in vaults for
months past. The surplus reserve rose
about abe, M'Soo0Oo and stands at present at
$24,1s4675. This contrasts quite sharply
with the actual deficit existing sixty days
ago The rapid recovery is due, of course.
TO the return flow OF money from the in
terror and to the disbursement of funds
into active channels OF commerce. Count
ing the sl5,000,000 of gold exported, 1t APP
pears that no less than $i6.0OO.OOO of cash
have come into the New York banks in
sixty days. The fact that surplus reserves
are not correspondingiy larger is due to
tn the .o gro o OF deposits. which are about
or course, necessitates an increase In the
cash reserve. The operations OF the week
considering the quietness in the specula-
tive markets. were rather surprising by
reason or their mag attitude. Loans have
expanded s4,579.100, whereas not half of
this increase had been anticipated Interest
ar nd he haox
II has been said that the banks were gain
Ing an enormous volume of currency from
the interior. and from all appearances the
statement reflects the report of this money
IN full. The National City Bank seems to
nave absorbed about all the specie that
came 10 the clearing house institution.
The statement foreshadows continued
lead to revival in speculative activity
Is question that is being carefully de-
bated at present. In 1894. with record
breaking bank reserves, security markets
were almost lifeless, but conditions now
are so different that there is no analogy.
market shows that funds are seeking in
vestment at prevailing interest rates The
future VIII be determined by the continue
ance of the interior flow of money this
way. III 1t maintains It's present volume,
the usual easy money and prosperous
conditions, as rejected in speculative cir
cies, Will no doubt be witnessed again.
STOCK MARKET REVIEW
an enigma which any ordinary rules of
Interpretation are unavailing to solve. Fri
days buying of stocks was prompted by
the expectation of favorable bank state
ment. The statement proved more favor
able than the most sanguIne expectations
, yet the market lost even the small ami
nation it had been showing when the
statement appeared on the tape The net
changes In prices are without Significance
those or any amount being restricted to
Insignificant stocks. London reported a
firm and confident market, but the conf
dence did not extend TO the point of hold
= Ing American stocks up to parity level and
the opening here was very ragged and
irregular. The lack OF any upward impetus
from London and the utter Indifference
manifested to the bank statement offered
poor market in which to realize or SELL
Ing by Fridays buyers might have been
larger. In the absence OF demand they
seemed willing to hold their holdings, but
there was no inclination TO add to them
The bank statement reflected the reffux
OF unemployed funds TO New York the
total gain in cash being no less than S1l,-
$4,000. IL was not suspected that employ
ment for these funds had been found to
as large an extent as indicated by the loan
expansion of $3.50 100. The buying of mer-
camille paper by the banks, which has been
more active during the week, will scarce
ly account for much of this increase and
certainly no operations on the Stock Ex-
change are sufficient to account for it,
Unless some special transaction is disclosed
TO explain IL Ii Is probable that the bust
ness of industrial combination and fiota-
ton Is beginning to avail itself again OF
the easier money rates. The good demand
Tor bonds continued Saturday and prices
generally were advanced.
The dizziness of the stock market was
relieved during the week. except by efforts
by professional operators to induce
movement of prices in some of the mys-
tery-enshrouded industrials. Only on Mon
day and Friday did dealings exceed 10000
shares. and on Tuesday they fell below
10000 large proportion OF the small
dealings Of the week have been in Sugar.
Tobacco, Brooklyn Transit and the New
Traction stocks and United States Leather.
with no authentic information on which.
TO rase operations The board room trad
ers, who are in and out of the same stocks
every day, find their occupation gone when
prices come TO standstill- The dealings.
In the class OF stocks referred TO repre-
sent nothing more than the efforts of this
class to earn livelihood. The evident APP
proach or a crisis I'm the military situa-
ton In South Africa Is one factor in the
waiting attitude Of speculation. while en-
ngntenment. as 20 the future of business
and industry a whole. is awaited to
gauge the future. The particular import
ance of the Transvaal war upon the world
was its cutting off of the gold supply and
TINS only because conditions mad been ad-
ter In London 10 the continuance of this
supply or TO its merely temporary interrupt
tion The reimbursement of conditions TO
was clearly the impelling cause OF the vio-
lent disturbance in the worlds money mar
ket toward the close OF the year coming
as Ii did On a sensitive condition OF extern
sive speculation commitments and price In
fiation.
NO PERMANENT GRIPPING
But the readjustment having been eff
fected. II is not TO be expected that the
lack OF the gold output OF the Transyaal
will permanently cripple the worlds COM
merce. considering its ratio in the worlds
stock. IL Is not so clear that the top
ping over OF the airy speculative fabric
caused by the contraction OF credits, which
was induced by the iransvaal war. is not
TO have Interior effects. The action OF the
money market for some time past has
clearly enough indicated the disinclination
OF capital TO immediately re-embark upon
? the perflous OF speculation. The re-
action In money rates is now reaching
proportions and assuming a character to
raise the question whether business and
Industries OF more substantial forms are
not TO undergo retrenchment A few weeks
ago the Bank OF England. while making
concessions 10 attract gold on the one
hand. was according liberal credits TO the
money market on the other. with the pur-