The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-12-16
UPTURN in SHARE PRICES
BASED ON BETTER BANK STATE
MENT THAN WAS EXPECTED.
Copper at n New Low
POint-Unexpected Demands on the
Available Money supply.

NEW YORK, Dec. H.-OperatorS In the
stock market placed a favorable interpre-
tation on to-day's bank statement and
bought stocks briskly after its appear
ance. As prices rose over last nights level
heavy selling to realize encountered,
which carried prices back from the best.
The offerings diminished at the decline,
and the closing was firm at level gen
orally slightly above that Of last night.
Previous TO the bank statement the mar
ket was dull and hesitating, governed
largely by the erratic fluctuations in Anal
gamated Copper. That stock opened with
running sales of $500 shares at coz TO 3D.
compared with 661a at last nights close. 1t
declined TO 6514, breaking the low record
and checked the advancing tendency IN
other stocks The last price was 65l2, net
loss of a point for the day. The stock went
- lower than last Saturday, and, COM
pared with high price early in the week,
more than 10 points over last Saturday.
low level. The sentiment regarding the
stock was much confused, and brokers
usually credited with acting for insiders
both bought and sold the stock. The de-
cline in cash reserves was about million
less than was expected. The liquidation in
the speculative markets was reflected IN
the loan contraction of $11, 100, which re-
duced the encroachment on the surplus to
81, 152 $50. The transfer of funds to New
Orleans through the subtreasury was con-
tinued to-day.
The year-end contraction Of the money
supply has been the dominating influence
in the stock market during the whole of
the week, as was very clearly foreshad-
in, CO. We ha eft
With surplus reserves Of the banks below
seven millions and large requirements for
credits incident to the season definitely
known, the problem was one OF very simple
arithmetic Loans placed on call with
easily marketable collateral, and especially
such as are used for the speculative mold
ing of stocks margin, are always and
inevitably the first to be called IN When
money requirements are TO be met lor
other purposes. The action of the market
also has suggested rather clearly that some
Of the solid financial powers nave &C
guessed in a downward course OF prices
for the time as offering more sub
stantial vantage ground from Whlch 10
face the eXigencies OF the annual set
Elements. In addition, there nave peen
demands to meet when were not
counted upon. Such has been the foreign
demand, in spite of the decline In foreign
exchange rates to below the point at
which gold exports are profitable as SIM
pie exchange operation. The gold whlch
has gone out is believed to have been pur-
chased at what was in effect a premium
by foreign banking institutions, which are
DESTROYS TO make a favorable showing or
bullion reserves for their annual reports.
The active speculation in grains and cotton
also has made continuous demand upon
New York for cash, which was not counted
upon at this season Of the year. The
smaller expenditures of the government as
compared with last year has expanded the
current surplus and made large demands
on the New York money market through
the subtreasury operations. The supply OF
government bonds available for redemption
under the treasurys offer is constantly
diminishing and does not afford ade-
quate relief from the drain from the colec-
ton Of surplus. This is not only present
factor, but also causes a sense OF uneaSl-
ness as to the future effects. The sale or
effected and the reported purchase OF the
PocahontaS Coal Company by the Norfolk
a. Western was supposed 10 involve some
syndicate borrowing. The money market
has, in consequence, been active and strin-
gent during the week, and there was
good deal Of LIQUIDATION of speculative ac-
counts forced by calling of loans
Amalgamated Copper, though very err
ratio during the week and very heavily
dealt in, has been less of a disturbing ele-
ment than last week, its occasional rallies
exercising a sustaining influence on stocks
at times. The outlook is for well sustained
money rates until the end of the year and
withstanding the prosperous conditions of
general trade in all lines keeps the under
tone of speculation confident.
Railroad bonds have been quite active
and irregular United States old and new
tours and the fives advanced Is per cent.
over the closing call of last week.
Following are Saturdays share sales and
the recorded price changes: