The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-02-18


some closing of accounts.
CAUSE OF CONSERVATISM.
The fact that much of the recent specula-
ton has been on the presumption of finan-
cial plans not fully matured causes some
conservatism about further speculative
ventures. The reports of dissensions over
the merger of the American Smelling and
Refining Company and the Guggenheim in
terests and the resulting break in the
prices of smelling stocks offered disagree
able possibilities of difficulties arising even
in the last stages of effecting a consolida-
ton. The colossal steel merger has been
a varying and uncertain shadow on the
market all week. Wall street has not
wavered in the conviction that the merger
was in process of accomplishment, but the
terms have been subject TO perpetual sur
mise and gossip. There has been a signif:-
cant interest in the future officers and ad-
ministration of this gigantic Industrial
force, aside from the details or tnanclal
adjustment, which are in themselves OF
vast Importance, and especially in the ex-
listing course of things in the money mar
ket. The fact that no American tenders
were received for the new British ex-
chequer bond issue must be regarded as
highly significant of the extent to which
American resources of capital are being
absorbed for domestic investment.
The figures of the countrys foreign trade
for January add TO this significance, IN
dicating as they do an undiminished rate rate
January excess of merchandise exports and
the seven months excess OF exports are lar
beyond any previous record for tn the o., cor 3ro
for the month and s443,S9S.65S for the seven
months Of the fiscal year. The gold which
mas recently gone out TO France must, OF
course, be added in considering the un-
liquidated balance in our favor. There are
many indications that the return of Ameri-
can securities from abroad has been on an
mr. (CCa tod Ia nfn1x I,rrf hn
clusion cannot be escaped that an enormous
balance remains due and unpaid from the
rest of the world to this country. That
american capitalists should have re-
Trained from using these credits to Sc
cure desirable investments in first-clasS
government security, argues some sollcl-
tude regarding the future needs of the
domestic money market. The continued
drafts on the available credits of the New
York banks in financing railroad combina-
lions point to the same conclusion. The
period is approaching when the refiux Of
funds from interior sources 70 New York
banks viii cease. 1t does not appear that
the currency is redundant notwithstand-
ing the years heavy expansion of circula-
ton, both of bank notes and of gold. Dur
ing January the currency redemption of
bank notes at the United States treasury
ran very high, but for this month the cur
rent redemptions are diminishing, and are
below the average for the fiscal year. The
retirement of these notes is on a small
scale, Indicating that these issues are not
having much difficulty in keeping in cir
culatiOn.
The country's large bank clearings reflect
the activity of trade and business. The
probability seems small, therefore, of any
large Increase to the idle reserves of banks
in the central repositories. With the in
creased capital issues, and credits growing
out of railroad combinations and the great
steel merger still to be provided for. are
indications that all the countrys available
credits will be in demand for the immediate
future. That Europe will be able to spare
gold in liquidation OF her Indebtedness
seems improbable, in spite of the current
ease of money abroad, which is largely due
TO diminishing business activity and the
large expansion of government credits for
| military purposes. Experience shows that
Stock Exchange spectators might be SUBJ
Jected to all the rigors of a money panic
before sufficient effect would be produced
on the foreign exchanges to bring relief,
and even the domestic exchanges are not
always prompt to respond Those consd-
erations probably underlie the hesitation
developed in the recent rampant stock
| speculation.
Bonds have moved in sympathy with
| stocks United States refunding twos adj
vanced 1sc, the fives nc and the threes and
| new fours, II per cent. over the closing bid
| of a week ago.
Following are Saturdays share sales and
| the closing offered quota tons: