The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-03-31

NAN behN OAd FsbctOfc'V Ia NC VI
reserve requirements under the y per cent.
rule.
The Financier, in its issue of Saturday.
says: THE bank statement for the week
contains several surprising features. 1t
had been figured that the interior had for
warded but little money to this center,
and the Subtreasy statements showed a
loss by the clearing house institutions of
about four millions. The Inference was
that the cash reserves of the banks by
reason of the two operations had been
reduced several millions, but the weekly
exhibit reveals a loss of only 81 ,445, 100,
which. OF course, puts a more favorable
aspect on the situation. For all that, how
ever, the position of the banks has not
been strengthened, since the expansion OF
$b,110,SW in loans brought about a CORE
spending rise in deposits, necessitating
more reserve, and the effect is shown in
a decrease of 81. 401 .925, which brings the
present excess to $3.50, 500, the lowest aver
age reported since Dec. 10 of last year.
The expansion of Sc, ITO, 500 in loans can be
traced TO changes in one or two large
banks, and represents special transac-
tons. AS a matter of fact the leading
items were all influences I'm this way, so,
aside from a few institutions, the position
of individual institutions does not vary
much from the preceding week. The state
ment. on it's face, forecasts a firmer con-
dition in the money market, but to what
extent of it is difficult to determine. The
export OF a small amount of gold on a
special ordering during the week has given
rise TO many conjectures OF an impending
movement, but Ii Is to be said that normal
conditions do not warrant this belief"
WALL STREET REVIEW.
There was a feverish tone in the stock
market throughout Saturdays two hours
session and violent manipulation was in
evidence from time TO time TO check a re-
dictionary tendency. Heavy realizing was
manifest in the opening dealings, espe-
cially in Burlington, Northern Pacific and
the United States steel stocks. These
stocks maintained their recent prominence
in the trading, so that their downward
course had a correspondingly large effect
on the general market. Burlington was
bid up to 1z over Friday night. about mid
way of the session, touching a record price
at 17612. but 1t quickly fell back under the
mood OF realizing offerings, and closed with
only a fractional net gain. There was a
violent rise at the same time in the local
traction stocks, Lake Erie * Western and
tennessee Coal Realizing had already at
fected these advances before the appear
ance of the bank statement. The bears
sold i'm the large inroads made on the sur
plus reserve and caused declines, running
to a point in some cases. Supporting or
ders were met and the rally was made ef-
fective by a sudden and violent rise in
Rock Island to 1876, an advance over Friday
night or ga points. AtchlSOn was marked
up ia at the same time. A revival Of old
rumors of a combination between the two
systems accompanied the advance. Rock
Island fell back sharply on realizing, and
the closing of the market was feverish
and irregular with profit taking in force at
some points in the last. The United States
Steel stocks did not tiuctuate more than a
traction. but the dealings in them were
very large. There were wide advances in
a number of high grade and usually mac
tive stocks, including L~ackawanna, Morris
~ Essex, Pullman and Colorado fuel, pre-
ferred, running from 81 To 10 points, the
latter in the last named stock.
Another eventful week has passed in the
stock market with a very animated and
varied speculation In full swing. The daily
average of transactions has run well over
a million shares stock, and over S.0O,O0
in par value of bonds. There has been L
constant digestion of speculative profits
on a very large scale, and this has en-
couraged the bear party TO go short of the
market occasionally in the confidence that
the elimination of the rise had been
reached and that they would have good
opportunity to cover short contracts later
on in the expected period of active spec
ulative liquidation, but the continued large
emand for stocks and the recurrence of
rumors regarding plans for the betterment
or individual properties nave as OFTEN
driven the bears to cover. The admission
for trading in the unlisted department
OF the exchange of the United States Steel
stock when issued, proved an excitement
to the general speculation. The prices
to which these stocks had risen in the
narrow trading on the curb offered hand
some profits on the stocks of the constit-
uent company which were exchanged. COM
pared with the prices of those stocks be-
fore the merger. There was an appre-
hension that with the greater facilities
- ldAlAA III Nh& h1f r. aR ~ IOl1G
them downward very promptly that these
stocks were not to be left without support.
There was organized and skiilful support
from the outset and the realizing was
largely absorbed and prices advanced. This
save renewed confidence TO the whole spec
ulation and the trading in the steel stock;
formed an important element in the mar
ket during the latter part of the week.
The belief that plans We're working out
for a general combination of Southwestern
railroads made another center of Specula-
tive activity. Missouri Pacific continued
the leading figure in this movement. and
the Colorado roads were very conspicu-
Gus and strong.
LARGELY PROFESSIONAL.
The market was highly professional and
speculative during the whole week, as
shown by the volume of transactions in
Individual stocks. which were sufficient to
nave affected a change of control in many
stocks. had they represented any proper
ton of actual transfers. The good reports
of business in most lines. all through the
country, and the continued high level of
railroad earnings. formed an effective I'M
DERIVING support for the whole speculation.
The only threatening prospect was in the
money market. Great confidence was pro-
fessed by high authorities that there was
no danger of ~stringency. but the continued
discussion of the possibilities of replenish-
ment in case of need indicated some dis
quiet. These discussions have not devel-
oped promising prospects Suggestions that
the secretary of the treasury might afford
relief by a purchase of government bonds
nave been met by the objection that the
available issues are held unreasonably
high. Nor has any official countenance been
accorded to the suggestion that the gov
eminent interest. due on May /. might be
paid in advance. But the drain on the
money market of the subtreasury opera
ions continues large.
The export of a small amount of gold,
this week. in the coin of the country to
which il went, was not in itself of large
Importance. but il is the general feeling
that il is the prelude OF a general outward
movement of the metal. The rising tend
ency in foreign money markets and the
known future needs of those markets point
TO such a result. OF course. the scarcity OF
exchange bills in New York is artificial, as
the exports of merchandise continue
very large, but the commercial
bills of exchange are withheld
from the New York market and sent
forward 10 the credit OF the holders who
are placing loans in foreign markets. II is
quite likely that an advance in the ex-
change rate to the gold export point will
bring additional offerings of these bills
upon the market. but a further advance in
foreign interest rates would secure gold il
the foreign markets needed it. unless do
nestle interest rates should show a greater
1900 -.ll $500 >D.x~Y&