The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-09-24


Exports OF gold and silver from she por. Of
New York for the week were So. 2s5 in gold and
ssO4. 81 In silver bars ard coin.
Specie imports from all countries were S7.S6
In gold and .ss5 in silver
Imports OF dry goods and merchandise were
valued at IS. 22s 073 for the week.
The weekly statement OF the associated New
York banks. issued Saturday. shows the follow
-lg changes:
Loans. decrease $50 500
Deposits. decrease 1913 iVV
Circulation. increase $4,000
Legal tenders, decrease 1884, ~
Specie. decrease 2S0Z,OO0
Reserve required. decrease 2ees $50
Surplus reserve. decrease 4zsS,S5O
The banks now hold s1s.552.s25 in excess Of the
- per cent. rule
The Financier says: THE increasing demands
of the interior for crop-moving funds is shown in
n loss OF s.. 7522 200 by the associated banks
OF New York for the week ended Sept % AL
this money shipped West and South. Oper-
atoms with the subtreasury have resulted in
little change either way. The interesting feature
GOO in the loan item, the first contraction of
consequence that has been noted since the third
week In July. The change for the current week
Is not large, but derives significance from the
fact that the drain OF cash out OF New York
has led the banks to curtail outstanding COM
mitments The failacy OF forecasting the prob
able volume OF interior demands over fall sea-
reserves. the shipments so far this year having
been fully up to the ordinary, despite the
peated assertions that New York would not be
called upon 10 finance the crop harvest. AS IL Is
the banks have a mucn heavier reserve than
usual at this period, but as the shipments OF
only logical IL further shrinkage in loans re-
suits. The situation is somewhat complicated by
the adjustments OF the German and Swedish
loans. now being negotiated here. but so far as
ordinary commercial and local business is
cerned 1t favors a nrmer money market 1t is
rot tn he he Is
much higher than the average, necessitating a
en- needs contraction In other items releasing
part OF this reserve. is the ordinary remedy. For
the week Just ended the reserve shrinkage is
this very operation. This Is In direct contrast
with the exhibit OF the previous week. when
the reserve loss heavier than cash shrinkage.
The fact that the circulation of the banks has
renders it possible for the banks to ship West
a large amount Of money that does not deplete
reserves or affect totals"
WALL STREET REVIEW.
New York stocks weakened afresf Saturday.
and after two hours Of active trading the mar
ket closed active and weak. except for the irreg-
ularity cs . j by shorts buying to cover in some
Of the stocks whics had been most severely
raided by the bear7. Only In Tennessee Coal was
the rally as much point. leaving a net loss
or points In that stock The coalers, the high
priced specialties and the steel stocks except
the steel rail makers show the heaviest losses
The rtoting and boodshed in the anthracite min
Ing region had a depressing influence on the
whole list. and Reading issues We're specially
affected on account Of the hope that has been
INDUCED in that it's mines would not be shut
down, which was disappointed by Fridays cessa-
ton Of work i'm that company shafts The Iignt
buying for London account was entirely dis
regarded, and the slight demand for bargain
hunters, which made it's appearance here and
there, was without any influence in checking the
iiquidation- The railroad group did not escape
the prevailing weakness, and standard railroad
"a nm
minor roads. There were examples of losses OF
point or over in the trunk lines the Southern
group, the Southwesterns. the grangers and the
Pacifics- Baltimore & Ohio and louisville q
Nashville were most conspicuous for weakness
Lewed selling. although 1t was no weaker than
had been expected. and in the decrease in loans
the extent to which genuine Iiouidation has been
going on In the stock market during the week
snd detracts materially from the force of asser-
tons that the selling has been mostly for short
account. 1t seems also that the remittances In
payment or the German loan which affected the
exchange market early In the week. were ar
ranged without recourse TO the local money mar
ket- The movement OF gold from tie Bank OF
England TO Germany. coupled with the heavy
interior demands for currency, strengthen the
conviction that considerably higher money rates
Prices are considerably lower "a result of a
weeks trading In the stock market. On Mon
day and Tuesday there seemed to be an effective
cheef 70 the liquidation begun on Friday and
Saturday OF last week. and the demand from,
shorts TO cover effected considerable rallies
renewed
in force, and broadened out so as 70 Include
pretty much the whole list. active as we'll as
dormant In the latter class some heavy de-
clines were recorded. owing TO the length of
time which had elapsed since there was anv
trading in the stocks and the changed conditions
in the meantime The immediate news develop
ments or the week have been important but the
conviction has been forced upon speculative
element. which has held out persistently for
high prices. that the usual factors making FOR
depression at this season are not to be evaded
istive pools have been at work in the manipula-
ton OF prices here and there some times by dis
semination OF unwarranted assertions regarding
prospective dividends the entrance OF influential
new elements into specified properties and such
devices. The task OF sustaining prices has been
comparatively easy. owing 10 the firmness with
which the controlling interests in various stocks
have held them, and to the continuance OF low
rates for money. But while the bull party has
been able TO sustain prices by careful nursing.
the market has been entirely unfit 10 ABSORB
abstention OF the general public from any buy
ing Even after perceiving this condition. the
spectators held on In the confidence that the
money market was 20 escape the usual fall
strngercy. and that they would be able 10 carry
their speculative holdings ever the later period
when advancing prices generally expected IN
Wall street But unmistakable premOEitory ysmp-
toms have developed this week that the course
Of the money market is 10 be about usual this
year. The spectators have therefore abandoned
their attempt 20 maintain prices and have
offerings on the decline, as Is invariably the
result OF fall In prices. Bear spectators have.
Of course. been short sellers. and in so far as
their requirements remain uncovered. have made
an element OF technical strength for the market.
THE MONEY MARKET.
The grounds upon which hopes have been based
that money rates would De easy this fan are
pretty generally unknown. First was the expec-
tation. as business activity had fallen of so
considerably. that there would be much less de-
mand than usual for credits. The volume OF the
clsarings and the level Of railroad earnings show
that the reaction In general business activity
was a good deal overestimated. IL was expected,
In addition. that the countTy'S additional money
supply would keep down interest rates. This
increase has come from the production of our
ard the Alaskan gold mines. from the ex-
panson OF bank note currency. and from the
governments refundiEg operations as well as
from large receipts or Australian gold But the
sequel has proved thar the needs OF foreign money
markets nave kept steady pace with cur expanded
only Of available credits. but draw
ng on our money supply by practically paying a
PREMIUM on gold 20 replenish their banking re-
serves Foreign governments needs fOr loans to
meet military expenditures have absorbed large
credits. and the German money markets have
had !. burden 20 carry CT imitation capital
industrial projects Furthermore. the
London market Is still cut on from rs recent
source Of gold supply IN South Africa. and the
large sums Of gold which usually 20 from Aus
sraila 70 London have been diverted to san
FIanciseo
fr corseuuence New York bankers have been
large lenders IN foreign markets. and for con-
siderable period have been practically out OF the
local money market Infersor banks have. In the
meantime. beer active in placing loans Ia the
New York market. The effect Of these conditions
which save been ripsring for a long time be-
cams rssnifsss last week. when large demands