The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-01-20

gains the banks have made in their dsal-
ings with the interior and the subtreasury.
ana the item would have been higher had
II not been for the exports of specie earlipr
In The week. The gains in the leading items
were confined principally TO half a dozen
large banks. Owing TO the face that the
cash expansion was not distributed among
the banks in proportion 10 thet- iac1 eases
IN other items, the reserve percentages have
undergone wide fluctuations as compared
with the usual changes. The statement,
despite the record breaking figures really
indicated continued easy money, IL the
accumulation OF idle cash in thu banks is
taken as criterion. The total specie and
iegals held by the clearing house now
amount In round numbers to 257% millions.
II is not surprising that Europe turns TO
this accumulation as the representative of
a store of national wealth upon which
drafts may be made TO meet emergencies.
In passing il may be said that the increase
alone in the deposits of the New York
banks last week amounts TO more than the
aggregate deposits of all the banks in quite
a number Of reserve cities throughout the
United States"
WALL STREET REVIEW.
The New York stock market was ex-
cited and nervous throughout the short
session Saturday. under the varying for
tunes Of the speculative contest waged be-
tween the bulls and the bears. The bulls
made determined stand in the early deal
ings. boldly supporting the weak spots by
liberal buying orders and causing sharp
advances in special stocks. which had
a sustaining influence on the general mar
ket. The unwieldy short interest was made
uneasy by this show OF strength and
bought urgently, 10 cover. When the bank
statement appeared, there were mixed opin-
ions as to the bearing of the large changes
disclosed, but the bears detected selling
to realize by the interests which had been
opposing them, and they fell upon the mar
ket with determination. Prices broke vio-
lently under a flood of selling orders for
both accounts, and the market closed active
and semi-demoraliZed with prices for the
most part at the lowest. The admittedly
serious ill-health of Queen Victoria caused
uneasinesS as to the possible bad effects
on foreign securities markets which might
be reflected here. The bears also circu-
lated reports, afterwards shown to be
groundless, that President Mckinley had
had a relapse with the grip, and profess
sional manipulative tactics were manifest
in other canards which were put ahoat.
AT the opening of the market there was an
urgent demand for some of the steel stocks
on the report that the Federal Steel Com
pany would absorb a rival organization.
Steel and wire was advanced an extreme
22s and Federal Steel IL. Missouri Pacific.
Wabash preferred and debenture bonds and
Texas & Pacific also were strong at adj
vances of 31s for Missouri Pacific; Wabash
preferred 2, and Texas Pacific rs. The vio-
lent break in Anaconda and Amalgamated
Copper had the first unsettling influence
on the market. The weakness was at
trfbuted to London selling on account of
the dull conditions in the copper market.
Anaconda broke 81 and Amalgamated Cop
per AZ. Both stocks rallied in sympathy
with the general strength of the market.
In the final break in prices declines
reached. in Brooklyn Transit. TO points;
Metropolitan Street Railway. 4: Manhattan,
312: St. Paul. go; Missouri Pacific 49,; Steel
and Wire. "a; Federal Steel. Erie first pre-
0Qf
Rock Island; 2ls and a large number of
active stocks from l to points. In face
of sthe stock market liquidation, the
enormous increase in the loan account of
the banks of 22,S41 600 was disagreeable
shock to speculative sentiment and served
to offset the effect of the cash gain of
nearly Sl4,00O.c00. There has been large
placing of loans abroad during the week,
but special operations must be looked to
TO explain the loss item. The payment on
account of the Pennsylvania Coal Com
pany purchase and large borrowings by
| enc Of the great railroad companies to
| carry purchases of stocks of other rail-
! roads. made last year, are supposed to ac-
count for some part of the increase.
The stock market during the week has
shown state of nervous apprehension
| among spectators long of stock on mar
gin and a marked falling off in that gener-
al demand for stocks which afforded a
sure market for SO prolonged period of
extraordinary activity in trading. The con-
4
demand which lifted them to that point
was purely speculative and was not but
| tIeSsed by genuine requirements, which
would hold them at the high level attained
From technical point of view, the mar
ket has given evidences of an overextended
| long account. Stocks have been held, how
| ever. with considerable determination, and
| evidently there is an element that is still
| confident of higher prices. The selling has
| been largely forced by the declines which
/ the bear element has caused by manipula-
/ ton, thereby uncovering stop-loss orders
| and dislOdging long stocks. The bear tao
| tics have been resisted by powerful specu-
| lative interests, which have had supporting
| orders in the market The bear element
| itself has been so eager to anticipate the
| elimination of the rise that 1T has kept the
| short account in the market very large
| This is in itself a powerful sustaining fac.
| tor, and represents practical discoIntins
| of threatened liquidation. AS a CONSEQUENCE
/ there are large buying orders to take
/ profits for short account at even slight re-
| cessions in prices which props the mar.
| ket and checks the declines. The bear
| leadership has been notably bold and ag
gressive up to this time. These influences
have served to Offset to degree the un.
DERIVING weakness of the market
| UNWARRANTED RUMORS.
Various developments during the weel
| have demonstrated that spectators have
misplaced their confidence in many rumor.
Il tildl nave DeeH dHOdt. "A S11t1ng process
has begun of facts from fancies, which
| leaves a large residue of unconfirmed, dis
credited and even disproved statements
| which have been the ground in each cas-,
of large buying. Expected dividends or in
creases of dividends have not been forth
| coming; much heralded consultations hav,
been officially disclaimed. and have. in eacl
| case left heritage of disappointment anc
prospective loss. The leading incidents O
| this class have been the assertions D,
| President ]. j. Hill, of the Great Northern
that he never owned a share of ST. Pau
stocks in his life; the denial by an oficia
OF the Metropolitan Street-railway O
the reported lease of Manhattan; the lacl
| OF expected provision by the Federal Stee
| directors for quarterly dividends ON tn
common stock during the coming wear an,
| subsequent rumors of bond issue and ;
| suspension of dividends in the future: ;
| dividend of only per cent. on New York
Chicago x st. Louis Railway, where al
| the way from 219 to per cent. had beel
confidently predicted. and the failure of tn
Erie dires;u rs TO take any action on a div
idend when many spectators believed tina
| the first preferred stock was TO be place,
| on a per cent basis immediately Their