The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-01-08
THE ONE DISTURBING ELEMENT IN
THE STOCK MARKETS.
Banks Gain I'm Reserve Funds, De-
tfvity of Local Business.
At New York Saturday money on call

COinHleIclai DlliS, Stcl1ZHf-cz1z-
Silver certificates were 5S1z959skc. bar
silver was soc and Mexican dollars were
471zc. Bar silver at London was firm, at
271sd per ounce.
The imports of specie for the week were
$500 in gold and s40260 in silver at the
port of New York.
Exports of gold and silver from that port
70 all countries for the week aggregated
$500 7O1 in silver bars and coin. and $751;
9s2 in gold.
The imports of dry goods and merchan-
disc at the port of New York for the week
were valued at s10.255.9
The weekly statement of the associated
New York banks shows the following
changes:
Surplus reserve. increased ........-. $3.50. $50
Loans. increased ..................... 4,107,6O0
Specie, increased ...................-. 504, 500
Legal tender. increased .............. 3,3l1, 400
Deposits. increased ............-...-. S,S6,zU
Circulation, increased ................ lyi, 40O
The banks now hold 81, 757,725 in excess
Of the legal requirements.
The Financier says: 1.-The New York
banks continue to gain slowly in cash
holdings and surplus reserves. despite the
drain made upon them in the way of gold
exports. The clearing house institutions
report at close of the week just ended.
$3.50 $50 excess cash above the amount held
at the opening of the year, the surplus
reserve standing at S11.757.7 25- The ex-
pansion for the six days ended Saturday
is of more than ordinary interest. since
IT was made in the face Of an increase of
nearly 100000 of deposits. which, of
course. tied up about two and one-fourth
millions of money in additional reserve
requirements. The gain in cash was 81.
sl5,20O, of which the larger part was in
form of legal tenders, due to receipts from
the interior Loans are A107.600 higher
The annual dividend disbursements at
this center have doubtless affected the
statement, and detailed analysis shows
that there have been some unusually heavy
changes in the totals of larger banks, but.
viewed in all lights. the exhibit is TO be
considered very satisfactory The interior
movement, in particular, is assuming
larger proportions than had been expected
During January OF last year the banks
gained weekly something like S,O0OOO0 in
cash, the surplus reserve rising between
the openinf and the close of the month
about so, 900. The gain so far this year
has been prOportiOnately heavy, but the
exports of gold. of course, operate to keep
the excess cash at a low figure. Still. the
banks are more than holding their own.
and are demonstrating an element of
strength which must be looked upon as
gratifying. Under the circumstances, the
outlook favors rate for funds not ma
terialIy different from that now prevail
ing. How long exports are 10 continue
is an uncertain problem. but as conditions
favorable TO the United States, both in
inception and in results accruing, the in
cident of exports is not viewed with any
degree OF apprehension. Present operations
are I'm the nature of loans to Europe. II the
return statement is made In the form of
American securities the United States has
only added to its wealth and Cancelled
certain percentage OF yearly interest now
RENTED abroad.
wALL-STREET REVIEW.
The stock market suffered Saturday from
the continuation of liquidation for Berlin
account. The volume OF this selling in New
York was not formidable, but the senti-
mental effect of it was decisive in driving
prices downwards throughout the list and
discouraging buying Of stocks. The fur
Their sharp decline in international rates
In Berlin and London precluded the ex-
PLANTATION of money stringency to account
for the selling, and made 1T appear that it's
motive was political. The friction between
Germany and Great Britain over seizures
of German mail steamers was not left
alone as an explanation, the reported
movements of Russian troops towards the
1TOnt1erS OF A1SndnlStan arOuSlQS the dp-
prehension of further embarrassments for
Great Britain. A leading authority the
sterling exchange market recorded his
opinion that as long as the Transvaal war
continued gold would continue to go out
from New York. The Board of Trades re-
turns OF Great Britains foreign trade for
December, showing a decrease of over $23,-
100000 in imports and an increase OF $780,
900 In exports, taken in connection with
the heavy selling of securities in New York
for London account. goes to explain Lon
con's continued control over international
exchanges and ability to draw gold at will.
The lightness of the outward movement of
cotton from this country also keeps up the
rate OF sterling exchange.
While the selling for foreign account was
being executed there was no disposition to
keep prices above the London parity. and
pressure against some leading industrials
especially Sugar, was added. With the ces-
sation OF London selling and the appear
ance OF the bank statement there was an
Improvement in sentiment. Losses were
partly recovered and the closing was firm
on good volume of business. The fact
that the surplus reserve was maintained,
ana even slightly Increased, in face of the
gold export movement and a loan expan-
sion Of ST. 600, afforded much encourage
ment over the domestic money situation.
The stock market moved in an irregular
manner all week. and the motives Of the
operations have not been by any means
clear. The confusion is largely due to the
iact that professional operators were clos
mltted themselves in expectation of the
weeks events. Such movement naturally
tends to nullify the influence of the actual
event when IL occurs. Thus one OF the rules
IN STOCK exchange speculation is TO buy In
anticipation of the early January demand
caused by released dividends and interest
ana money seeking investment The pre-
ceuinS weeks strength in stocks was due
largely 10 this anticipatory buying and the
corollary OF this buying would be selling
10 take profits last week when the dividend
money began to be disbursed But while
one class OF professional SPECTATORS Is
seeking to profit by the buying of what
wall street affectionately regards as the
outside public there is always another set
aiming TO make profit out of the>first set
themselves.
ACTION AND REACTION.
Last weeks events show that very heavy
Hines OF short contracts were put out the
week before. on the theory that the antici-
patory demand for stocks would prove to
nave outrun the real demand last week.
and the attempts to realize would break
the market and offer opportunity to cover
at profit. This element had on their side
the argument that the recovery in prices
from the level OF the December panic had
already oGtrun the usual rebound after
such disturbances, and that a reaction was
due from the selling OF stocks bought In the
panic. The short sellers argued also that
the money market would not show immedi-
ate relief after Jan. 1, and that the return
OF disbursements TO the market would he