The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-02-25

the same tendency. As a matter OF fact.
traders were disposed to sell stocks on the
ports from trade authorities that prices Of
materials especially the metals, were
yielding. There was also the fear that the
cutting of grain rates on the trunk lines
would spread to other classfications, and
some rather striking declines I'm the volume
OF bank clearings. compared with the cor
responding period of last year. Reports
by telegraph TO the Financial Chronicle
for five days show large shrinkage. not
only at New York, Boston and Philadelphia,
put at Baltimore. amounting to nearly So
per cent. and at st. Louis of nearly per
cent. New Orleans, however, expanded its
clearings over AZ per cent, Chicago 10 per
cent, and other cities outside the seven
leading cities So per cent. Railroad earn
sixty-one roads which have already report
ed Tor the second week in February show
ing an average increase of 30.45 per cent.
over the corresponding period Of last year.
for the third week I'm February by the st.
Paul, Hooking Valley and Rio Grande
western. There was good buying of some
or the coal-carrying railroads stocks, and
a rallying tendency in the market, which
was checked somewhat by the renewed
weakness in Third-ayenue and the New
York utilities In the final dealings.
The decrease in cash shown by the bank
statement was very near TO the estimates,
but the supposition that the large rate Of
loan expansion had been checked proved
erroneous. Chiefly by reason of the addi-
tional loans of $11, OBS 800, the surplus re-
serves are further depleted to the extent
OF A,53I.125. There can be no doubt that
bankers are influenced in their liberality
In extending credits by the possibility or
currency imitation authorized by the pend
ing financial bill. Sufficient attention has
been called TO the fact that the bill author
ICES an extension of bank note circulation
70 the amount of the par value of bonds at
present deposited to secure circulation.
which would be 10 per cent. increase.
But not so much attention has been given
to the fact that bonds at present deposited
to secure circulation amount to only SZ'5,-
S30,l70, while national banks capital
amounts to se06. 100000. which fixes the linn
its of the bank note circulation permitted
The refunding plan provides for the issue
of new bonds to the amount of the present
premium on outstanding bonds, which Will
be available for deposit to secure additional
circulation. The additional profit AFFORDED
believed will invite bank note expansion
TO the limit authorized, unless the premium
on the new bonds becomes excessive.
MARKET WAS PROFESSIONAL.
The breaking of the Stock Exchange
week by a holiday has had some influence
in curtailing activity in the securities mar
ket. Professional spectators are always
disclined to enter upon commitments when
a period of suspension of trading Is APP
preaching, with possibilities Of events
occurring which will materially affect
values. But this motive is by no means
sufficient to account for the persistent dull
ness of the stock market, in face Of the
financial BILL Increased business activity.
expanding industries. high level or earn
ings for railroads and Industrial corpora
tons. all make for higher values or Sc
curities. Either. the dividend returns are
assured of an increase, as in the case or
stocks, or the payment of fixed return
is given additional security, as In the case
of mortgage bonds. But from other points
of view the activity and prosperity of gen.
eral trade operate against an advance In
the price of the securities. The demand Tor
| money for mercantile uses or Tor inaugural
ton of new enterprises encroacheS on the
surplus reserves of financial institutions
and leaves no accumulations of Idle funds
| 10 be eagerly offered for employment In
| speculation I'm securities. Pursued to its
| logical conclusion. active trade and indus
trial development tend to discourage even
| investment buying of securities, as well as
| purely speculative buying, because an ac-
1 tive mercantile demand for credits, by rails
| ing the interest rates, may attract the
\ transfer of funds from fixed investment in
/ securities to use in the money market.
| That was what happened to our securities
i in foreign markets last spring, when our
| demand on foreign money markets Tor set
4 tlernent of our favorable trade balance
| ran up the interest rates there. Meantime,
| the plethora of idle capital mere, seeking
| investment had run up the prices OF our
| high grade securities to unprecedented
| figures, and foreigners sent them home to
| market by the millions, and perhaps by
| the hundreds of millions. Even this re-
| ducing treatment failed to wholly relieve
| the congestion of capital, and the satur-
| MALTA of company promotion, Industrial
combination and speculation in new securi-
| ties followed, until the country's new en-
| terprises began to employ increasing vol
| umes of money and credits. Then the in
| fated securities came to market In New
Vrrly ", mt tnR n
| til the panic on the Stock Exchange was
precipitated in December. 1t will be re.
| membered that much was said, in hnancia
quarters, during the latter part OF last
| year when New York bank deposits were
| diminishing, of the encroachments on the
| banking business made by the many new
| trust companies. But the annual statement
| OF the New York State superintendent OF
| banking has shown that the deposits of the
| New York trust companies, instead or gain
ing at the expense of the banks, were de-
pleted some seventy-one million dollars fol
| the last six months in 1899 During the
| same period the deposits OF the New Yorf
clearing house banks fell of sl65.Oo0Ooo. The
| deposit account of interior banks showed
that large part of this total sum of S2l6
100000 had gone into use in the interior
| This transfer of deposits was without doub
largely due to obligations incurred by New
York syndicates and bankers, through pro
| moters, for taking up securities and prop
critics of the constituent companies in th'
great industrial combinations of last year
| Since the first of the year, as result
largely of the seasons pause in business
probably for annual settlements. taking
| of accounts, etc, the deposits of the New
York clearing house banks have recovered
to the extent Of $50, S19 700. But new ioan
have been made in the same time to tn
extent of 81, 765, 200, and obviously not TO
use i'm the stock market. The flow of casl
has also turned away from New Yorl
again and toward the interior. The pos
sibilities shown by last years experience
LOT the voracious absorption OF capital b.
the industrial and commercial expansion
| and development of the country Is the un
| deriving motive Of the inactivity OF specula
ton. Here and there stocks show strength
| on buying prompted by good assurance o
an increase in the dividend return, bu
| aside from this psuedo-investment de
| mand the market is dull and narrow.
Business In bonds has been on some
what diminishing scale in an irregular mar
| ket. The market for government pond
has been unusually active at rising prices
| on account of the tendency of the refund
ing measure. United States twos advance
*. the threes y, the tours q, and the oil
| tours and fves rs per cent in the bid price
Following are Saturday share sales an
the closing bid prices:
| Closin
/, | Stocks. sales. 81.
Atchison .................."......... LOO ~,
| AtchtSOn PREF DIV
Baltimore * Ohio i'99So &c
|