The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-08
QUIET WEEK in STOCKS
MONETARY CONDITIONS OPERATE TO
REPREss SPECULATION.
Prospects of Imminent Foreign De-
mand ON New York Gold-Domestic
Situation Also Is Bad.

the speculative community. Professional
traders early were indisposed to leave con-
tracts open, even over Sunday. Selling
during the first hour was followed by re-
buying after the bank statement appeared,
the weakness of the showing having been
so well discounted that its publication in
duced no outside selling. 1t is reported
that some large sums of cash are going to
nearby cities for use as change in holiday
business. 1t Is expected that the heavy
customs collections by the government will
continue for another week on account Of
the large importations for the holiday
trade. The small loan increase by the
banks not unexpected and it was even
feared that a considerably greater ex-
pansion had occurred in that item, as sew
eral large transactions known to have
been made in the loan market. The foreign
houses are now the important factors in
the loan market and it is believed that the
resources for these loans have beer secured
by drawing foreign exchange, which is in
effect a short sale of exchange. The high
rate for time loans serves an attraction
TO foreign lenders. There have been very
large repayments of foreign borrowings
for some time, which are believed to have
been secured on very advantageous terms
for employment in the stock market. Their
expiration was an important influence in
the recent heavy liquidation IN the stock
market. Some of these funds seems TO
have been reloaned during the past week
at the better terms now prevailing.
Operations In the stock market this week
have been confined to the testing efforts OF
the professional traders. Some attempt
was made to lift prices early in the week
on the assumption that the Dec. diSburse-
ments to the money market would relieve
the tension there and afford resources for
speculative operations. but as the week
relaxation there might be in the money
market was only temporary. The tighten
Ing process was manifest in the time
money market, in which commissions were
exacted for loans for the shorter periods
which raised the rate to the equivalent of
per cent. The week passed without any
export OF gold to Europe. but SlOW,W0
went to South America to pay English OBJ
legations there for wheat, and which is
analogous to a remittance from here to
London direct. The Bank of England has
given up large sums of gold also for ship
ment to South America, and it is thought
probable that further calls may be made
| New York, directly to Paris or London, is
| believed to have been evaded only by a
large use Of bankers credit. by selling of
| bills of exchange to be covered by pur-
| chases later. short interest in sterling
exchange of many millions of dollars is
| said to nave been created in this way. The
| London money market has grown easier
under the influence of large government
| disbursements and the payment on Monday
| to shareholders of the constituent COM
panieS in the shipping combine so that
large repayments have been made to the
| Bank Of England, which has left its
minimum discount rate unchanged. Large
/ forces of depletion are at work, however
on the banks reserve, and an advance in
( the bank rate Is looked for before the end
of the year, and such an advance may draw
gold from New York. In New York the
banking reserves are suffering heavy de-
pletion from domestic sources. Customs
| collections continue to run very high and
average 100000 daily. The return move
ment of currency from the interior is also
| delayed and large remittances have been
made to New Orleans. Ii is rumored also
! rectly in the New York market by inter-
| ior banks before the crop moving demand
| and while call money ruled high here have
been Withdrawn on very large scale. The
result is to increase the demand on New
| York banks for loans, at the same time
that inroads are made on their cash re-
! operations of the New York trust COM
panies, which are not SO obvious to the
public owing to their exemption from the
requirement of weekly reports of condition
to the clearing house. The ordinary bank
ing and loan operations of these institu-
tons have grown on an enormous scale
during the year, and the approach of the
year end brings incentives to strengthen
their position. This process is likely to
throw an additional strain on the banks.
| The extent to which fiotation of various
organizations and combinations may figure
| in the operations of the trust companies is
subject of much interested conjecture.
curites adds to the Importance of this
subject Interior money rates continue
high and the continuance of active trade
at a high level of prices maintains the de-
mand for credits throughout the country.
! The possibility of a year-end money squeeze
has been the dominant factor In REFRESHING
| all activity I'm the stock market, and finan-
cial powers are united in frowning on spec
| ulative use Of resources, which evidently
| will be needed for more essential purposes
There are elements in the trade situation
| as well, the definite outcome Of which Ii
| is desired to await. The advancing ten
| dency of wages of railroad employees and
the raising of transportation rates as a
| set-of is extending over the breadth Of the
continent The effects on railroad net earn
| ings, on volume of freight on cost of ma
tertal transported and on final demand for
! consumption must be readjusted. In the
| iron trade also authorities report a general
| tendency rather downward and the holding
| back OF some work because BUYERS find
| the cost too high, the more so as present
stocks of material are exhausted. The ef-
forts OF professional traders to awaken
| speculation on the score of the PRESIDENT
message and governmental affairs met
| with little outside response. Some appre-
hension has been expressed that discussion
! of currency changes would cause uneasi-
| ness among the foreign creditors of the
country and help to unsettle the year-end
! arrangements with them. The renewed de-
| cline In silver and q hrmer tone for conner
have been Incidental influences upon Sc
! curities.
The undertone of the bond market has
been depressed in sympathy with stocks
United States threes, coupon, declined "
per cent, as compared with the closing cali
| of last week. ~
Following are Saturdays share sales and