The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-01-20
HEAVY SALES FOR PROFIT
FOLLOW AN UNEXPECTEDLY GOOD
STATEMENT BY THE BANKS.
Result Is Somewhat Lower Price
Notwithstanding Influences of the
Week-Monetary Conditions.

NEW YORK, Jan. H-There was no
change to-day in the conditions upon which
yesterdays advancing prices were predi-
Gated. The bank statement showed more
than the expected increase in cash reserves,
that statement showing an expansion of
over S9,O0O00 A loan increase of s., 2s2, 800
helped to swell the deposits, so that the
surplus benefited only TO the extent Of &c.
103, 900. The statement, however, was
strong one and the selling movement with
which 1t met was obviously profit-taking by
professional traders. Yesterdays upward
movement was continued to some extent
this morning, especially in the coalers and
some of the industrials, but the later profit
taking wiped out about all the gains and
left several important stocks a point or
more lower than last night. The reduction
in the minimum discount rate from to 312
per cent, and the very strong recuperation
revealed by the Bank Of Germany was con-
hrmatio1I of the weeks indications of the
improved situation in Germany. The indi-
cations are, however, that surplus capital
there is inclined to flow into home and
other government securities, and no dispo-
sition has been manifest to renew interest
in American securities. A feature Of the
days market was the bidding up of Chic
ago, Burlington & Quincy unassented stock
to 20S. compared with last nights bid of
191. No stock came out. American To-
bacco unassented stock sold fifteen points
niger at $50.
The stock market has felt the cumulative
effect this week of various factors, which
were in evidence before, but which were
contested by supporting orders in the mar
ket by insiders. or by inspired publications
belittling the Importance of these develop
ments. These efforts to contest prevailing
tendency were apparently abandoned with
the opening Of the week, and depression
and progressive neglect have set in. The
permission granted by the United States
Supreme Court on Monday to the State of
Minnesota to appear and argue its petition
for hearing of its suit to prevent the
formation of the Northern Securities Com
pany clinched the likelihood that this great
project is to be subjected to litigation that
probably will be prolonged. The value of
It's securities and the question Of its very
existence are, therefore, to be held in abey-
anoe. The introduction Of these securities
to the market and the efforts for their dis
tribution have been much counted on by
spectators as a stimulating influence in
the whole market.
Another chilling influence on specula-
ton was the announcement of new bond is
sues by the Atchison and rumors Of other
issues by the Erie and the Union Pacific.
The basis of these rumors is the announced
intention Of the two companies to make
vast OUTLAWS for extensions, improvements
and bettermentS. The proposed issue of
$35OO0,OOO of additional stock by the New
York Central comes in the same category
OF influences. The granting of rights of sub
as a valuable privilege at the present mar
ket price of the stock has kept its quota
ton up. All through the recent period of
railroad prosperity much stress was laid
upon the large sums expended out of cur
rent net earnings for permanent better
ments, for which additional capital would
ordinarily be looked to- The argument has
been used that these expenditures would
forestall future requirements and make
possible a reduction of expenses in less
prosperous times, and so make for the
suance of new bonds and stock opposes
this contention, is 1t puts new charges
ahead of dividends and gives new stock
equal dividend privileges. The existing car
famine is also calculated to throw doubt
upon the sufficiency of recent outlay for
that purpose, on which much stress has
been laid.
The apparent squirt at this time of the
public demand for investment in securi-
ties adds to the effect of these proposed
large new offerings. So do the developments
i'm the affairs of the trolley syndicate; the
rubber trade and the asphalt trust. The
theory that abundant capital is awaiting a
favorable turn of affairs TO float into Wall
street securities has to contend with the
disclosures that enOrmus sums have been
ventured in these projects, whose securi-
ties have been almost unknown In the
ticn how far this investment of large
capital in great projects outside of the
stock market has proceeded; how far bank
ing resources have been committed to
these projects and how far difficulties of
realizing on them may develop. as they
have done IN the cases already disclosed.
These considerations have caused an un-
dertone of conservatism and some uneaSl-
ness in the financial world. which the favor
able reports of business aid trade have not
entirely alleviated. The future course of
est reports show satisfactory returns, but
reports are renewed of rate cutting in
spite of the complaints Of lack of cars to
carry all the business Offering
The easier money conditions have failed
to stimulate speculation. The rush to re-
tire bank-note circulation Is a symptom
that the constant expansion Of the circula-
ton which was a feature or last year
conditions, is not to be repeated this year.
Applications are already on file in Wash
lngton for the withdrawal of bonds and
retirement of circulation up to the full
legal limit for this month, for February
and for a part of the March quota. For
eign money markets have become abun-
dainty supplied with the turn of the year,
but are not expected to remain so. The
issuance of a German and Prussian loan
this week is to be supplemented in the
near future by the new British loan and
by a large Russian loan at Paris. The Lon
don money market is expected to reflect
the heavy payment for taxes for the quar-
ter from the middle of the month onward.
The stock market has become dull and
sluggish under these influences, and the
only speculation Of Importance has been
in stocks affected by individual causes.
Bond dealers have complained that the
investment demand for bonds was not as
large as usual for this period of the year.
and the principal activity has been in spec
ulative or semi-speculative bonds. United
States refunding twos declined 4 below the
closing call of last week.
Following are Saturdays share sales and
the recorded price changes:
High Low Closing
Stocks. Sales. est est. Bid
Atchison ................ 500 77h 76lt 7eA
Atchison pref 900 9S2s 972t S75s
Baltimore * Ohio.-..-.. 900 104 103 1929
b. & o. pref............ zoo s6s 967s g6ls