The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-05-14

Surplus reserve, decrease. s6f5. $50
Loans, decrease -.........-............ ZSIyO
Specie, decrease ..----.-.....---....... l65l 100
Legal tenders, increase. ..-............ 56,lOO
Deposits, decrease ..................-- l,y5UW
Circulation. increase ......-....-...-- WOOO
The banks now hold sl5,332, 725 in excess of
the requirements of the % per cent rule
The New York Financier says: AFTER
continuous expansion in loans. which
lasted over six weeks and added s4S.0O0oOo
TO the totals of the New York banks. the
clearing house institutions reported May IL
decrease of SIS, 800 in the loan item. The
decrease is of small moment. but it is in
teresting at this time showing the Gull
mination of operations which have been
constant factor I'm the weekly reports for
considerable period. The assertion has
been made that the New York banks are
carrying sterling loans to the amount of
$4O.000,000 This plainly interpreted means
that they are loaning that amount to Eu-
rope. While there is no means of verify
ing the statement, there is no question
that the rise in loans has been due more
or less to that cause. At any rate, now
that actual exports of gold are being made,
It is not to be expected that the banks will
add to outstanding commitments. 1t had
been expected that the s14.000,000 loan of
the Pennsylvania Railroad Company would
influence the current statement. but there
IS authority for saying that this transac-
ton was completed too late to enter the
statement calculation, and, besides that,
quite a large percentage went to trust
companies and Philadelphia institutions.
The cash changes in the statement are i'm
material. The banks lost tn the treasury
on account of the gold exports and the in
terror aims did not offset these decreases.
This was not evenly distributed, as one
bank alone reported an increase of 100000
in specie. The changes in loans and cash
account for the decrease of $1.909.000 in de-
posts. the first shrinkage noticed since
March 81. after steady rise amounting to
$67.OO0,OOO- The surplus reserve for the
week was reduced s645, $50 and now stands
at SIS, 332, TBS Taken a whole. the state
ment is better than had been expected. The
chief interest for the week centers in the
volume of possible gold exports. Already
the movement amounts to over $6,0000O0.
The gold has gone to France, and if Eng
land does not demand remittances the ship
ments may be less than now indicated. 1t
IS worthy of note that time loans are now
being engaged to run over the presidential
election. the impression being that money
rates will harden considerably later on. In
1896 money during the latter part of the
presidential contest loaned at 100 per cent.
and above. New York still continues to be
the cheapest money center in the world
WALL STREET REVIEW.
The tone of the trading IN stocks was
feverish and uncertain. Saturday. and the
disposition to sell was still evident. There
was an effort to support some stocks. and
the short selling by the bears was followed
by buying to cover contracts. Missouri Pa
cifc was lifted at one time point above
Friday night, carrying the railroad list
with it. The grangers, especially Burling
ton and Southern Railway preferred, were
pretty well supported. after the rally in
Continental Tobacco preferred from its Ga
point slump. This stock recovered almost
completely before the close Stocks were
offered freely at the higher level of prices,
ard declined to the lowest before the APP
pearance of the bank statement Peoples
Gas. the local fractions and the steel
stocks were all notably weak, and large
losses were registered in number of
shares which have not been traded in dur
Ing the recent declines. Some effort was
made to rally prices after the bank state
ment, because IL failed to show the ex-
pected heavy expansion in loans, but it
was successful only in isolated instances
The close. generally. was unsteady and net
changes were mixed. The weekly reports
OF the mercantile agencies confirmed the
feeling that the business reaction has not
yet reached its limits, and the opinions ex-
pressed in the Senate, Friday. of the pos
sibility OF foreign complications ac-
count or the Monroe doctrine. as applied to
the Danish West Indies. were cited by the
bears as further ground for speculative de-
preston
The report of a small decrease in the
loan account Of the banks for the week
instead of heavy increase was surprise
TO Wall street. 1t did not alter the belief
IN the reported loan to the Pennsylvania,
which Is reported TO be from Sl50O0,0G0 to
s2O.sJ.cOO. The placing of such loan late
In the week would figure in the bank state
ment Tor the averages OF only day
The calling of loans earlier In the week
IN preparation for the accommoda-
tinn would figure disproportionately in the
averages. The effect would be the throw
statement
the Following week.
Prices for. stocks are lower than they
were week ago after week of great
irreguiarity and uncertainty In movement
FOR two days the market looked as though
general liquidation had set in. but the
quick recovery on Wednesday afternoon
was the result of a movement TO cover
by the bears. who had been selling short
but who became alarmed at the cessation
OF the pressure for liquidation. The liqui-
dation, in fact, seemed TO be completed for
the time being. and its limited extent gave
color 10 the supposition that IL had been
due TO the selling out OF pool whose
members had grown tired OF their nonsuc-
cess in getting prices up. The strong and
skiilful manipulation with which the mar
ket was sustained while the lquidA ton
was being effected showed that the sellers
had large resources and a wide-reaching
concert of action The market rallied con-
siderably from tie low point on the de-
mand 10 cover contracts, and efforts were
made by bull pools TO extend the advance
but the general demand for stocks con-
thitC0 CAbtAiCiS dbdlucllC anu the mar
ket fell back into dizziness and renewed
weakness Wall street wants TO know how
much further the decline in prices of COM
modities must so before renewed consump-
ton will be invited in sufficient volume
10 absorb production. On the answer TO
this question depend future profits for
Industrial enterprises well as earnings
by railroads. So far as events OF the week
have served to throw light on the problem
they Indicate the readjustment OF prices
Is not yet complete A marked influence
was extended In speculative sentiment by
the indications that the business reaction
was beginning TO affect the volume OF rail-
road traffic
THE RAILWAY SITUATION
The weekly statistics OF tonnage received
from west of Chicago and shipped to the
East were regarded highly significant
Grain deliveries at Chicago. compared with
the corresponding week OF last year. show
falling OF OF IS per cent. and compared
with 1888 decline Of 62.7 per cent. Grain
shipments 10 the East show a falling off OF
lS.5 per cent. from the previous week. and
freight officials OF Eastern lines were COM
plaining or light traffic west-bound traffic