The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-03-26

The imports or dry goods and merchan-
disc at the port of New York for the week
were valued at 81, 206. 967.
The weekly statement Of the associated
New York banks for the week ended Sat
urday shows the following changes:
Surplus reserve. increase.......... So, $780, $40
Loans, decrease II. $50. 700
Specie, decrease ..................... 1000. 200
Legal tender, increase. $4,000
Deposits, decrease ......-......-... 1866. 800
Circulation, increase ...-........... 391, 200
The banks now hold $5,S17, 300 in excess of
legal requirements.
The Financier says: The New York
banks are gaining In surplus reserve, al
though the current statement shows a loss
in actual cash during the week. The easier
position is due entirely to the fact that
loans and deposits are being contracted
heavily. What is bringing about this sud-
den decrease is rather difficult 10 answer,
but that special operations are responsible
is conceded. One bank alone seems to have
contracted its loan commitments TO an
amount equal to the shrinkage made by the
combined banks, and this institution was
also responsible for the greater part of the
falling off in deposits. As its cash holdings
suffered a material reduction, the average
reserve of the other banks is somewhat
higher than a week ago. A loan reduction
of almost $24.O00,O0 In two weeks, with a
proportionate drop of 500, 10000 in deposits
IS unusual at this time of year-in fact, the
figures have been rarely exceeded at any
time. The reduction, of course, explains
why the surplus reserves are now rising,
even with q heavy loss of cash to the treas
ury and the interior. The factors that have
been prominent for several weeks in de-
plotting the cash holdings of the banks are
slowly changing. Last week. for instance.
the loss to the interior was nothing of con-
sequence, and the treasury is nc longer
gaining at the expense of the banks. Ex-
change at domestic centers is strong. owing
TO remittances to New York on bond ac-
count, and the treasury, from the same
cause, probably will be a debtor for some
little time. The new circulation taken out
must sooner or later have an effect on
money rates, so that the Immediate outlook
favors an easier condition. Borrowers
hold this view If their indisposition to place
offerings at ruling quotations now is a cri-
terion, and the attitude OF lenders also re-
fleets the same opinion. In the face of re-
viving activity on the Stock Exchange.
however, it is not safe to count on a con-
tinued reduction in the leading items of the
banks. The New York institutions are
working new circulation into use, the in
crease of the past week having been SS9l.-
500. This brings the total to SIS. $50, 200,
which. while not a record figure. Is yet far
above the average. A continued increase is
to be expected"
THE WEEK IN WALL STREET.
Evidently Wall street attaches i'm
portance at this time to the attitude of
London towards the local securities mar
ket, for when it was seen from the morn
ing cable dispatches Saturday that London
had reversed its attitude Of Friday and
had begun to buy American securities the
disposition manifest here Friday to sell out
and take profits was completely altered.
The buying for London account was sup
plemented by a rush to buy by all classes.
London's influence was shown in the lead
ership i'm the early market of the interna-
tional favorites, of which Baltimore & Ohio
and Denver & Rio Grande stocks were
most conspicuous. Baltimore * Ohio rose
in the late dealings an extreme 3s and re-.
tanned its conspicuous place in the mar
ket throughout. Pennsylvania, In which
the transactions are rarely on a large
scale, was dealt in in 1000 share lots al
most as though that were the normal unit
of transactions. and individual transac-
tions in the stock ran from that up to 5000
shares, which was the size of the block
taken when the price first touched 14O. All
the trunk lines were more or less affected
by this movement, but the stream of real
fzing held back the Norfolk & Western
stocks. Transactions of a thousand shares
and upwards were frequent all through the
railway list. and blocks of 5000 shares
changed hands in Atchison common and
Southern Pacific. The Pacifics, especially
Atchison. and some of the Southern and
group were very heavily
dealt in all day. The grangers were less
active. but the group was strong. There
was some tendency to reaction in the local
transactions, and the iron and steel stocks
were quiet. Otherwise there was no i'm
portant exception to the general activity
and strength of the list. Tn closing was
active and fairly buoyant at the best
prices. An early inkling was obtained of
the probability of a favorable bank state
ment based on the growing abundance of
funds offered to borrowers. The heavy
loan contraction in spite OF the outbreak
OF speculative activity indicates how i'm
portant an element has been the buying
of government bonds for speculation in
tying up the money market. The late rally
indicates that the principal liquidation on
this account has been completed. The loan
contraction by the banks resulted in a
decline in deposits of nearly s1i,0O0,WO and
a consequent reduction in reserve require
ments of 1913 $40. AS the loss in cash
was only $780, 700 the surplus was benefited
TO the substantial extent of 81. 130, $50, bring
Ing the surplus up TO $751;, 800.
There was not much change during the
week In conditions bearing upon actual
value Of securities. but a number of de-
velopments in technical conditions COM
bined to cause an awakened speculative
demand for stocks, and an advance in
prices. Most important was the appreciable
relaxation In the pressure on the money
market, which has for some time deprived
the speculative element Of available re-
sources with which TO operate. Great con-
foence has been expressed for several
weeks that the new currency bill was To
result in easy money, but the prospect of
easy money is more difficult for Wall
~ Y" - IAfth tLAl0l L
factors. because the actual relaxation OF
money must be awaited TO supply funds
for speculation. AS n matter of fact the
present relaxation of the money market
f. not due TO additional supplies OF bank
note issues under the new law, but rather
60 a general changing Of plans by national
banks with regard TO taking out additional
circulation For nearly two months there
vas large demand for loans on the New
York banks for the purpose OF buying gov
eminent bonds The price OF governments
had been so much increased as a conse-
Cuence that a liquidation OF holdings Of
fered much larger profits than the taking
out or circulation. There have been large
sales OF government bonds In consequence.
with the intention OF deferring plans for
taking cut additional circulation until
bonds could be bought I'm at lower prices.
The ~refunding twos when issued were
quoted at one time on the Stock Exchange
at 1864 bid. and on Wednesday they sold
ut 1{. Other government bonds declined
In proportion, but have been steadier for
the latter part OF the week. This move
nent TO take profits I'm governments has
released large amounts OF loanable funds
20 the money market. The liquidation of
loans tied up by the purchase of govern
ment bonds doubtless accounts for the
frmness OF New York exchange at inter-
for points. earlier I'm the week. the rate at
Chicago having advanced at one time to
= cents premium per thousand. The abb
~crpttan NJ cash hv fha Nour Uo~l -