The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-08-25
WALL-STREET SITUATION
THE WEEK HAS BEEN DULL, But
THE OUTLOOK Is GOOD.
Generally Prosperous Conditions Con-
ducivc to n Strong Market-AvaiI-
able supplies of Cash.

NEW 1Okh, Aug. Zf--lne customary
tendency 20 take profits at the close of a
week of rising prices was offset to-day by
the buying attracted by the highly favor
able character of the weekly review of
commercial conditions by the mercantile
agencies and by the settlement of the
Franco-Turkish trouble. The London mar
ket was closed for a holiday to-day, so
that the demand for American securities
included by the latter development came
directly on the New York market. There
was some proft-taking before the appear
ance of the bank statement and again in
the final dealing. but the professionals
found little difficulty in supporting prices
ana held the market pretty steady and
near the top until the close. The public
still holds back. but evidently the hope is
entertained that Monday morning will
bring more outsiders into the market, at
tracted by yesterdays greater activity and
strength and its persistence to-day. The
bank statement was about as expected in
the cash item, except that the special ship
ments to Philadelphia were not disclosed.
The leaders to-day were Atchison, Erie,
the Pacihcs, Amalgamated Copper and
Sugar, about in the order named. The
strength was we'll distributed, but some of
the recent strong stocks held back some
what, especially the Pennsylvania group,
the Wabashes, st. Paul and other rail-
roads. The United States Steel stocks were
quiet, but the preferred rose a point in the
late dealings.
There has been no rise in speculative &C
tivity this week. except in a few spots. The
volume OF dealing has been somewhat less
than last week. and on Tuesday the deal
ings in bonds fell to the low level OF the
year. There was increased activity of spec
ulative bonds later in the week. NotWlth-
standing the dullness of the market the
tone has been quite firm and there were Pc
RODS of positive strength. The closing UP
of outstanding contracts on the short side
was responsible for some part OF the
strength, thus eliminating a potential re-
quirement for stocks and giving promise OF
even greater dizziness in the future. There
were. however, the usual operations by the
always industrious room traders to try 10
reap advantage from requirements by
shorts by bidding up stocks and even 10 IN
augurate bull movements by the formation
of pools In special stocks. In a few cases
operations were or sufficient consequence to
give color to the suppOsition that larger
financial plans were being worked out or
that coming developments warranted expec-
tationS of large returns of stocks, but all
these were insufficient at any time to give
great animation to the market. The cover
ing by shorts was largely attributed to
Western sources, from which selling had
been largely on the early indications of
hAAn16t ~ IAG Win III
character of the demand indicated that the
crop damage had been oyerdiscOunted by
the selling OF stocks and possibly oyeres-
timated also. The continued high level Of
railroad earnings in the regions affected
had an effect on the holders of securities,
the price of corn seeming to have advanced
to q figure sufficiently attractive to bring
out large offerings from reserves in farm
ers' hands. Finally, the crop condition of
the spring wheat crop and the large total
crop of wheat indicated have received in
CIeASlnR ATf1nflOn Ia f IaQkfQ raQnrn QX-
ports of wheat, although not fully main
tanned this week, adds to the importance of
our wheat crop and reinforces the statistics
OF foreign wheat crops as showing large re-
quirements to be met from out surplus sup
ply of wheat.
The conditions thus presented are a fore
ible reminder of the outcome of last years
marketing of crops. The development of a
shortage of spring wheat last year, which
caused a weakness in the securities of all
the railroads in the Northwestern region,
proved TO be neutraliZed by the very heavy
traffic in general merchandise, so that rail-
road earnings were not checked i'm the in
crease. The exceptional profit enjoyed last
year by the winter wheat,
corn and cotton regions are believed to
insure them against excessive business de-
preston from this years corn shortage.
The steel strike cloud still overhangs the
considerable effect on the market for prod
ucts already. The diminished production
of iron has resulted in a weakening in that
market, while delayed deliveries of some
lines Of finished product, caused by the
closing of mills, is beginning to interrupt
| projects under way.
Operators in stocks are inclined to con-
tinue their analogy with last years events
and point to the ultimate improvement in
the anthracite trade, in spite OF the shut
down of the mines. This sentiment may be
the effect rather than the cause of the
nrmness of the United States Steel stocks,
in which the dealings have been small and
Insignificant. The real pressure on the
stocks came in anticipation of the strike
and forced the drastic liquidation early In
July, when forehanded financiers were pre-
pairing for what they saw was the lneyit-
able. The feeling in financial circles is thus
seen TO be one. of confidence in the ulti-
mate values OF securities and continued
prosperous conditions.
Speculation halts because of a doubt OF
the capacity of the money market in the
war for operations on a sufficient scale to
attract a large outside share in a specu-
lative movement. Money on call rules
easy at the moment but there Is no in
ducement to make large commitments in
stocks in reliance on call loans. Already
the interior is Withdrawing funds from
New York for the annual crop movement,
thus belying the superficial view that the
| regular resources of interior banks this
year could relieve New York banks of this
drain. This almost perennial expectation
Is due to .nisconception of the nature OF
this interior demand. The payments to
the field laborers and to small farmers
| necessitates the use of actual currency,
the disuse of checks making impossible the
economy OF the circulating medium which
| results from Neutrality-suspicious. operations WIN
| checks between banks. But this currency
must be drawn from the cash reserves OF
| the banks. thus contracting proportionately
their credit resources. based on cash re-
| serves. The permission under the banking
laws to interior banks TO count as part of
their legal reserves cash resources which
are actually on deposit with New York
banks has the effect of converging the
annual demand for currency almost directly
upon the cash reserves of the New York
| clearinghouse banks. The prospects are
that the demand will be heavier than usual
this fall.
The railroad bond market has been mar
row and dull, but firm. United States
bonds were unchanged on the call price
| of last week.
Following are Saturdays share sales and
the recorded fluctuations in prices:
High Low Closing
Stocks. Sales. est. est. Bid.
AtchisOn ............-.. Is, 200 1878 77A 1871
| Afchisnn nref ......... N2n0 QSA Q-A QoA