The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-06-25
Bank statement n Surprise in the Mat
ter of Cash Figures-LocaI Trade
Shows n Good Volume.

6Oiu diu Slf,Uoi III SllNtl.
Imports of dry goods and merchandise at
the port of New York for the week were
valued at 1914, OOo.
The weekly statement of the associated
New York banks, issued Saturday, shows
the following changes:
Surplus reserve, decrease ...........s 81, gu. 900
Loans, increase .................... $500
Specie, decrease L. 1 800
Legal tenders, decrease ............ 1.176, 800
Deposits. decrease ................. 4, 49, 500
Circulation, increase .............. $500
The banks now hold SIS, 526, $50 in excess
Of the requirements Of the Is per cent
rule.
The Financier says: las foreshadowed in
this analysis last week, the loan move
ment, which has been an important and in
teresting feature of the New York bank
statement for some weeks past, has ap-
p~arently eliminated. The loan item for
the six days just ended remained practical
ly stationary, a slight advance of $25,s 900
contrasting with the average expansion of
several millions weekly over the recent
spring season. The chief feature of the
current statement. however, is the loss of
s, lies, 500 In cash, which Is also reflected In
a decrease of 81, $1,000 in deposits. 1t has
oCt 10 y that tlC iVSo ~ tDC
banks on gold export requirements had
been practically counterbalanced by inter
Tor receipts. and in fact. that the cash totals
would show a gain, but the official state
ment, made on a system of averages,
shows otherwise. Since May 26 last the
banks have increased their holdings only
nominally. while loans have expanded sew
enteen millions, and the deposits over four
teen millions. The rapid rise of the loan
total is generally interpreted to be due to
Investments in sterling exchange. and some
estimates have placed the total of such
business at 500, 200, 900. 1t is only fair to
point are to be relied upon. The anomaly
presented in New York within the last
week of money loaning on call at 1 per
cent, while at the same time gold was
being exported to Europe, cannot be ex-
pected to continue much longer. Already
there is some irmness noted in the local
market and an indisposition prevails to
make loans over the end of the year. If
the presidents of past years are of value
in forecasting the future there will be a
decline in the loan totals of the banks very
shortly. The continued flow of money to
New York is attracting attention at pres
ent. but domestic exchange rates, for all
that. are hardening az the more important
centers. The circulation of the banks is
now $23. 133, 100, and is growing, despite the
light demand locally for funds"
WALL STREET REVIEW.
The Saturday short session of the Stock
Exchange was a feverish and exciting one
under the domination of much the same
influence as for some days past. The holt
day in London left the New York stock
market without its accustomed guide to the
speculative sentiment of the outside world.
with the usual result that professional
room traders were at sea for a time after
the opening. The sentiment observable for
some time past among the professionals
that the market was oversold and was due
for a rally was in evidence at the opening
and was reinforced by some obvious ner-
vousness on the part of shorts. The latter
element covered freely in Northern Pacific,
and there was a firm tendency in Sugar,
the trunk lines and Reading first preferred
which served as points of resistance to
weakness. But the continued demoraliZa-
ton in Brooklyn Rapid Transit upset the
confidence of the bull element and stocks
began to come on the market in large
volume before the end of the first hour.
| Northern Pacific vas carried down over a
| point from the high level after the opening.
| Extreme weakness did not become general,
| the trunk lines holding comparatively firm,
and shorts covered in anticipation of the
bank statement. The excited advance in
wheat here was an influence in the break
in stocks. The market had become quiet
n steady when the bank statement APP
peared and gave a shock to sentiment by
the large decrease shown in cash reserves.
based on the official reports of
subtreasury operations and statements of
the movement of currency by express to
and from the interior, furnished by the
banks themselves, had foreshadowed a gain
in cash by the banks, after allowing for the
gold exported during the week, of a million
dollars or more. Wall street is mystified
as to the source of the drain which has
depleted the cash resources of the clearing
house institutions TO the extent of So, los, 500.
The only plausible explanation which
suggests itself is that the decrease repre-
~zI~ -
to meet the requirement for the. with
drawal Of &,000.000 of government deposits
called for Monday. The insignificant
change in the loan item shows that ii
further loans have been placed in Ger
many this week they have been offset by
calling of loans in the New York market
The demand for the. time money during
the week indicated some expansion OF
credits. The shifting of loans caused In
this way may have had more to do thar
has been suspected with the weakness in
the stock market. The late break in the
market on the bank statement carried
some prominent railroad and industrial
| stocks from l to 2 points below FRIDAY
nights level. National Steel lost 3, North.
western pa and Brooklyn Transit AS. Elk
cept for a few rallies on covering by room
shorts the market closed weak.
CONFUSED AMI IRREGULAR.
The market has been depressed during
the week. but the movement of prices has
StA t'hA alld hlCEu lid
and the net losses are, in most cases, less
than the extreme decline for the week
owing TO some recovery during the
latter part of the week. The recovery has
been due, for the most part. to the cover.
ing Of short contracts by the professional
bears who had put out short lines very
freely last week and early this week. TIL,
motives attributed for some of this selIinf
proved TO be but noisy pretense, with the
purpose of precipitating further liquida
ton. and when this became manifest tn.
covering movement checked the decline ir
prices and gave TO the market the appear
ance of ignoring the reactionary factor.
which continued in force.
There has been no evidence of substantial
investment buying of stocks except i'm m,
This buying is not authoritatively ex
planned. but the strength of the stock.
gives color to reports that further har
nomination Of control of these railroad.
in the interest of Pennsylvania. is i'm con
temptation. This has exerted slight sus
tanning influence on the market.
Reports OF railroad earnings show a Ieve
well above last year still maintained
But the policy OF conservatism in diyfden,
disbursements. now avowed by practical
ly all railroad managers. has prevente,
this from having much effect on values
The outlook in the iron trade is admitte,
to be more favorable by conservative an
thorities, the Iron Age voicing the i'm
preston that the "opinion is gaInin.
ground now that prices are down preft,
close TO a basis which will be considers.
fairly safe by consumers" This encour
aging view Of the iron market condition.
L a aarrly offset hV the annrnaAh - -.