The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-01-14

DAYS. posted rates, S4of ana S1.coB
bills. AS2zg4.S3.
silver certificates were s4Ika65xc; bar silver.
0zc: Mexican dollars. 1910. Silver bars sold
at 291d an ounce in London.
Exports Of gold and silver from the port of
New York to all countries for the week aggregate
81. Goa. ss5 In silver bars and coin and s22,940 in
gold. L. ports Of specie during this week were
s4s. 72s in gold and s6s,Oe9 in silver. Imoprts Of
dry goods and merchandise to tie port Of New
York To- the week were valued at $11.453.46-
The weekly statement OF the associated New
York banks. issued Saturday, shows the follow
fng changes:
Loans. increase. &,042.so9
Circulation. 1l6W
Legal tenders. 35l4so0
Total reserve, increase. n,64S,5c0
Reserve requirements. increase.-..-... 3,596,525
Surplus reserve, s'o0i'1S
The Finarcier SAYS: THE New York clearing
house banks added 81, 64s. 500 - their cash hold
ings last week and as increased reserve require
ments called for only a little over three and one
half millions OF dollars, the surplus rose ss,051.-
e75. standing at so. 39s, $50, which figure is the
highest since Sept. 1 last. prior to the beginning
OF the crop movement. The gain in cash was
much larger than expected. but the source OF
expansion can be traced directly to interior re-
current operations. AS the currents of supply
now under way are likely to hCw in this direc-
surplus will be added to during the coming
weeks. The Que possible cause for a depletion
of excess reserve lies in the probability OF gold
exports, but It would require a considerable
movement 10 counteract the cams which the
banks are now making. Whe,her gold will go
out is a question. but the chances at present are
!. IN favor OF exports. The movement OF money
now is almost identical with the opening of last
wear. when the surplus reserve of about SIC, 0OO.-
90. reported during the first week In January
rose TO nearly thirty-one millions at the close OF
the month. Between January ana the second
surplus OF twenty-one millions. A puzzling fea-
ture OF the statement Is the slowness with
or business on the stock Exchange. The proba-
bilities are that an extensive liquidation has been
IN process. or that the trust companies have been
handling a larger volume of business than they
have been given credit for. Tie expansion ~
s4. 34e. loo IT deposits comes for the most part
strong position OF the New York banks under
natural conditions will have a temporary effect
on the money market, although present rates are
remarkably easy. IL is not likely this will check
the tendency of interior funds to flow East. as
similar conditions in past years have had little
that the possibility OF gold exports has been
made more certain by the addition Of ninety mil
was not a factor in the case at the opening Of
last year"
WALL STREET REVIEW.
Saturday will go down in Wall street as one
OF the record days which have become go fire.
quent Of late. Speculative sentiment took on
che nervous high-strung characteristics which
have so frequently caused wide and excited
fluctuations In some stock or group OF stocks
ment or a rumor of ONE development. Saturday
- was the me- local traction sf1Tp, e tS ~ M Man.
made IL evident that the violence of the move
ment was in large part due to the existence
of a large short interest. which manifested
acute distress on the advance which carried the
Of 5 points. Closing at III Friday night. the
stock opened at IFS. and by nSo o'clock had
s points from the highest. The rise in the stock
was accompanied by many rumors. one Of which
was thai the Gould family had sold the con-
trOllinS interest in the property to capitalists
identihed with the largest insurance companies
Another story was that the Metropolitan Trac-
tion Company was to take the road and guaran-
den advance in the local fractions was taken
advantage Of for heavy, realizing all through
the whole market broke rather sharply. with the
with net ioss = e prsIesn was necioedIy WEAK ana
early market was strong and animated under
me continuing influence OF the advance in the
and concentrated buying in that and other allied
by the opening advance. the bulls rallied the
market and brought forward new points OF
& Ohio. the ~grangers, Tin Plate and a numper
OF low-priced railroad stocks had periods Of
and the preferred 81 points In the late realiz-
Ing movement the steel stocks developed special
s SsSSassi the Sn s 1es f eomsr Of ia a t SsF trade OF eOpNR stionai
Tube and Steel and Wire each broke ga. The
reaction IN Delaware & Hudson was 81. Ma
tional Lead preferred dropped 64. and American
Express sold at a decline of 1s points from the
HcANOS "a N'f
In the cash deposits Of the banks was uncx-
2eerediy o large and the increase OF only a little
70 the benefit OF the surplus in both cas>s. But
the statement was taken advantage Of to realize,
golc exports and experts estimate that The
increment viii reach from fifteen to twenty
million dollars. IL was asserted SATURDAY that
erTangements had ALREADY been made for tie
Gays steamers.
The business in stocks the past week has
precedence trade Of Friday s and satur shs uo Of
last week, which reached the highest records
i iSs a aF Isrs aays .s sTsdi 0S s M6us : SATURDAY ,,f nslt- day q,
above the two million shares level for the first
change. Unlike the great bull. market Of two
years ago. in which the newly hedged Industrial
market is distinctly one of railroad socks and
the industrials play an Insignificant part, The
growth OF the community of interests policy
among the railroads. The purchase OF the Penn
chase OF the Central Railroad OF New Jersey
Tor the Reading. the appearance in he Erie
directorate In community OF control of interests
that have been rivals in the railroad field IN the
stock by J. ]. Hill. OF the Great Northern. are
the concrete facts from which IL inferred a
interests Countless rumors have circulated OF
are the only weil-authenticated Developments.
CONDITIONS COMPARED.
The Importance OF this DEVELOPMENT as the
latest step in the rehabilitation OF the railroads
or the country by insuring maintenance OF freight
rates can only be understood by n comparison
OF conditions in the railroad world with those
OF a Few years ago. Then there was a pretty
general condition OF bankruptcy and wreck
alaong the railroads OF the country. The prob
.em presented was complex and formidable.
Bonded indebtedness was uEwieldy, both by rea-
son OF unecrupulous imitation OF capital issues
ana the nlgh cost or construction and material
In the earlier period. Tine construction was so
himsy In many cases as TO keep the annual
cost OF maintenance and repair up 70 a high
level OF expenditures Rate wars reaching the
point OF determination had brought freight rates
down 10 an Improbable level and the structure
and equipment or railroads made them inefficient
Instruments for cheap transportation Even the
growth OF freight business attracted by the
low freight charges therefor could not be taken
advantage OF. Old stock and bOndholders know
what sacrifices had 10 be made in the cutting
down OF bonded indebtedness BY reorganfzation
10 bring liked charges down within a margin
Of safety from bankruptcy. The prices after
wfrds reached By junior stock issues OF some
OF these reorganizattons showed how much hone
OF future value they carried. Not only had in
debtedness to be provided for, but new millions
OF capital had 10 be expended to IMPROVE and
cheapen the cost of transportation. ONLY ex-
pert railroad men are competent 10 understans
the marvellous Increase In economic efs3eiencv
OF railroads as Instruments OF transportation by
better equipment. Improvement OF operating
methods and permanent structures. cutting down
annual charges Ter repair and maintenance.
With the ability thus acquired TO do the larger
business. the benefits OF the larger transDorfa.
tIon Induced by the low freight rates. had a
gradual growth. With competition CONSTANTLY
forcing the freight rate downward and keen
rivalry IN the Improvement OF facilities the earlv
increase OF earnings were practically all re-
Invested In improving the properly. stock
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