The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-01-06
MONEY AT HOME AND ABROAD
FOREIGN CONDITIONS LIKELY TO
LEAD TO GOLD EXPORTS.
Week of Price Revolutions in Stocks
The Bank Statement - Local
Trade Is i'm Healthy Volume.

Sterling exchange was nominal, with actual
business in bankers bills at S.S6ls44sSA for
demand and siS1MGI4S1l4 for sixty days; posted
rates s4S3 and S4S7; commercial bills, s4SlAQ
4SlA.
Silver certificates were Gil@d65c: bar silver
esikc; Mexican dollars, 4924c- Silver bars scid at
% 9-16d on the London market
The London Stock Exchange opened wildly e&-
cited ON Saturday. with Americans much above
rarity. The American department was 50 over
crowded that brokers found it difficult to ap-
proach. St Paul opened with sensational Jumps,
reaching 1ss, with dealings limited The stock
afterward receded aud then readvanced. Fries
were also a particular feature They were
bought in large lots by local spectators. but
chiefly for American account. Atchisons were
another favorite stock. Others were about a
dollar above parity. except Northern Pacific
common which went below. After the nrst ex-
element there general. moderate reac-
ton. At the lower level. buying was resumed
and there quick recovery to near the top.
The transactions the heaviest known for
a long time. A number of prominent bears were
badly caught, but there were no failures. At
the close prices trife easier. Sales con-
tlnued on the street long after the exchange
closed. with the Readings chiefly dealt in. Other
notable advances made. The boom in the
recent losses were recovered
Abiding to the relations between the Bank Of
England and the government. whose manipula-
tions have kept credit dealers, for some time.
in continuous state of nervousness. the In
vestors' Review maintains that the per cent.
bank rate will prove a very different thing from
what ii year ago. THE market" 1t
points out, lis exhausted by prolonged COM
paratively dear money and longer has the
strength to bear up against adversely Such
rate implies that 1t will therefore be prudent
to expect failures There are many Indications
that the financial collapse which it was possi-
BILE avoid conceal at the beginning of 1900
Will now become visible. Whatever exchanges
occur, the foreign exchange VIII not advance
sufficiently To turn the gold stream hitherward.
Therefore per cent. will be followed by per
cent, and when 1t follows even the most con-
| fdent must discern signs of an approaching
| crisis
Immense borrowings by the market at the close
of December was one OF the chief causes Of the
| advance in the Bank of England rate OF dis
| toward Paris. The Statist, discussing the money
| position considers the possibility of obtaining
| gold in New York increased by the very large
| sales Of American securities made by London in
| New York The greater portion of American
| stocks carried in London is for American ac-
| counts and should the rate in London be appre-
| Gladly higher than in New York, the stocks car
| transferred to New York. The Statist thinks
| that New York can easily spare three or four
| millions Of gold.
AMERICAS POSITION.
A long article in the Statist on Americas
changed international position concludes as fol-
lows: 1T is difficult to believe the United States
| will be able to employ advantageously the whole
| of it's savings IL foreign investments The rea-
| sonabe probability is that about to wit
ness a great outburst of enterprise in the
! United States. Industrial companies Will be
| created, new Industries will be founded, ard new
| railways or combinations and branches of exist
| ing railways will be constructed. Thus there
| will be a vast outflow of capital at home. while
| it is not improbable the new colonies may be
| developed on a larger scale than hitherto II
/ the United States spends immense sums at home
/ ard does not buy commodities on great scale
and does not invest in foreign securities on an
| equivalent scale, 1t is obvious that the more the
| trade balance turns In favor OF the United
| States the greater will be its ability to take
| gold from Europe. Therefore the likelihood that
| money rates will rule high in Europe because
| there viii always he the danger of American
| capital being withdrawn. not only from Lon
/ DON but iron. Germany"
silver was dull throughout the week, although
| the India government is steadily purchasing The
| monetary position partly accounts for this dull
| ness. Holders prefer to sell than incur the cost
| OF increasing stocks The inquiry for general ac-
| count was insignificant The brokers were prac-
tically the only purchasers and they able to
| deal on their own terms If it had not been that
the government must buy largely in order to pro-
tect its note circulation the fall in silver prob
| ably would be heavy.
1
| New York to all countries for the week. aggre-
gated 81, 224,314 In silver bars end coin and s1l2,
$780, sSs in gold and s12S. 6e5 silver Imports of
| dry goods and merchandise to the port OF New
York for the week were valued at $3.50 ssi.
| The weekly statement of the associated New
| York banks, issued Saturday, shows the follow
| ing changes:
Loans increase. $50. 400
Deposits, increase 10, 16O. 300
Circulation. decrease IS. 800
Legal tenders, increase. zoo, 300
| Specie. increase BIOS. loo
reserve increase. o'M4 So
Reserve required increase 4190, 225
| Surplus reserve, increase.........-. 2,e24. rs
The New York Financier says: 1.-The New
| York clearing house banks made gain OF al
most seven millions of dollars in their cash
and subtreasury disbursements. but so heavy
| was the rise in deposit liabilities. aggregatng.
sSunteG Saa only little over 900 in suT
plus reserve increasing that fund to s14. i5o,075.
fourteen weeks 1t had been expected that the
banks would show some heavy changes and the
| EXPANSION in deposits be traced largely 10
| dividend payments and the shifting of funds in
| attributed logically to the heavy dealings which
| have characterized operations on the exchange
the averages. and it is quite likely that con-
| siderable portion OF belated transactions has
period The important feature of the statemen,
Is the plain indication of the turn that has taken
Rhe banks are now gaining from, the interior
and the result is seen in the ability of the clear
every demand made on them. but to add consid-
| crably their surplus cash holdings. This
means, the surface, continued ease in rates
| SO far domestic influences concerned, and
| the adverse features of the foreign situation re-
| vealed last week in the Bank OF Englands rise
| in discount rates not counted important
| enough here TO lead 10 a demand for American
| BE one in the development of American banking
| pcwer and the current only demonstrates to
| what an extent New York is superseding Lon
| dor as financial money center The banks
| here have had unusually profitable year They
| have added over $1,000 900 to the surplus. after
| their capital fifteen millions. and in every item
| an almost proportionate gain is recorded. This
| while IL does not concern the present statement
| serves to show the constant expansion that Is
| taking place. and emphasizes the fact that nc
| matter what demands may be made them the
| local clearinghouse institutions prepared
| IF Is quite likely, for time at least that the
| fluctuations. and IL Is also probable that before
| the close OF spring international factors quies-
| cent OF late will again become prominent In In
| fuencing the trend OF the various items. There
| seems to be question that the totals OF 1901
| will break all records"
/ WALL-STREET REVIEW
Spectators jumped into the stock market Sat
| urday morning, and put prices into state Of
| violent effervescspce. They quickly skinned
| the froth at the top levei Of prices. to taks
nronts, and attracted so large following to the
selling side that the sensational opening gains
| were mostly wiped out before the close. and IN
an cases greatly reduced After day Of violent
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