The Indianapolis journal., 1902-08-04
QUIET WEEK In STOCKS
SATURDAY THE MOST NEARLY STAG
NANT IN WALL STREET.
Price Level Generally Lower than on
the Earlier Days-Disquiet Over
Money Market Conditions.

NEW YORK, Aug. Semi znation
prevailed in to-days stock market. and
only a few professional room traders had
anything to do with the market Their
operations did not carry prices far away
from last nights level at any time. The
holiday in London left the market without
any orders from that source and empha-
sized the dulness. The days net changes
are slightly mixed. but the closing tone
was heavy The bank statement failed to
conform to expectations, but it's publca-
tion did not affect the market TO any ap-
preciable extent. Instead of an expected
decrease of over 100000 in cash the banks
| report a decline of about half a million.
A decrease in loans was hoped for, instead
| of which the loan item has expanded So
377.1O0. The resulting increase in deposits
| has swelled the reserve requirements to the
! extent of S, 262, 075, which, together with the
| decrease in the cash, brings down the sur
/ plus over the legal requirements to the ex-
/ tent of 81, 754 275. To-days money and eX-
| change markets were nominal. The fact
| that the next available steamship for ship
ping gold to Paris does not sail until next
Thursday defers the question of further
gold exports. The only features in to-day 5
market worth specifying were advances in
! the local fractions, with subsequent re-
actions, loss of over two points in st.
Louis & San Francisco and a buoyant re-
covery in the Central of Georgia income
| bonds.
\ ing disposition to buy stocks, which was
carrying prices upwards throughout the
| list. Various factors have intervened which
! might serve as explanation OF this check,
! but the selling seems to have been due en-
tirely TO a desire TO take speculative profits.
! Commitments on the long side had become
considerable as a result of a long continued
| rise, and the process Of profit taking has
necessitated a considerable absorption. In
some stocks the selling out Of the effective
| leaders in the operations for the advance
| has been rather obvious. Such movements
| are incidents Of all professional bull opera
| tions. The market has not yielded to acute
! weakness at any time, and there have been
| sustaining points OF strength at an uInes
| in the form Of advances in special stocks
due TO individual causes, real or supposed.
| A strong undertone is Indicated by the tact
that as prices receded the activity OF the
| market has sensibly diminished: showing
that holders have withheld offerings OF
| stocks at the lower prices.
Last Saturdays bank statement was a
| predisposing cause for the taking OF prohts
at the opening of the week. The large
| loan expansion was warning that the
| prevailing speculation was making large
inroads on available credits. while the feel
ing i'm the financial community is that
| bank reserves should be conserved at this
| time in preparation for coming large de-
| mands for interior requirements. The
large exports of gold announced for Tues
| day, followed by additional shipments Tor
! Thursday, emphasized this impression. The
! continued firmneSS of the foreign exchange
market after the shipments indicated that
| further outgo was within the probabilities
! Under ordinary circumstances a relaXatlOn
of foreign money markets might be looked
for after the month-end requirements are
met. But at the present time the LONDON
market is confronted with a payment or a
20 per cent. installment on the Sl60,OOOOOO
on the consolidated issue, while in Paris
the Bank of France is making prepara-
tions for the rente conversion plan. which
will necessitate temporary tie-up of
large sum TO enable the government to
redeem such portion of the issue as hold
ers elect not to exchange. The present
large Indebtedness of the New York money
market to foreign markets is now well
understood and the government financial
measures referred TO are believed 10 ex-
plain the indisposition of foreign creditors
TO extend loans here, Notwithstanding the
advantage offered by higher interest rates.
The latter part of, the month has also al
tered the expectations of relief TO the local
money market by a continuing govern
ment deficit. The deficit ran at one time
to over s12O0O,O0O, but has been reduced at
the end of the month to S,49S.SO9 Treas
ury officials express confidence that the
revenues will soon show a surplus, owing
to the large customs receipts, and 1t is eX-
planned that large part of the July deh-
cit is due TO extraordinary expenditures
in payment of war claims
An unexpected development during the
week was the reported absorption by the
st. Louis & San Francisco Of the Chicago
x Eastern Illinois, thus insurtng an en-
trance into Chicago for that system. The
recent large absorption or ST. LOUIS Il san
Francisco was supposed to foreshadow it's
Incorporation into the Rock Island system,
and its strength has helped the advance in
Rock Island on account OF the readJust-
ment of its capital Chicago & Eastern IL
linos had been marked out for transfer TO
some other large system, but 1t was eX-
pected to go TO Illinois Central. Reports
are are now published that Louisville &
| Nashville also was bidder for the prop
erty. The fact is disclosed that competi-
tions and rivalries have been involved
rather than progress toward adjustment of
a community of interests to insure perma-
nent peace and cooperation in the railroad
world, such as was but recently accepted as
| the ideal towards which the efforts of the
| financial powers were tending. In the
Eastern trunk lines territory, also, the
| progress of the plans for the Gould sys-
tenn 5 outlet TO the Atlantic is watched with
some solicitude TO the harmonious ad-
justment of the new relations thus Gre
| ated The Rock Island readjustment plan,
| now definitely promulga ted, has been the
subject Of great interest and conflicting
views. The prevailing tendency OF capital
| conversions towards exchange into fore
! closure issues on a highly expanded basis
of valuation is viewed with considerable
disquiet in the financial world and the ad
dtion of subsequent stock issues gives rise
TO a conjecture as to the possible status OF
such securities in the probable periods of
| depression which may occur in the future
as in the past. There is some questioning
| heard as to the good ground for the great
expansion in valuation which witnessed
as result of simple readJustment OF capi-
tai issues on property which is itself left
unaltered in its volume or earning power.
Some of the reports of net earnings of
| railroads for June are not satisfactory, oW-
ing TO the large inroads upon increases of
gross earnings made by operating expenses
| However general conditions of the crops,
! of the iron trade, Of industry in general
| and of current railroad earnings are con-
siGered satisfactory and have had no ap-
parent bearing on the reaction in the stock
| market.
The only notable activity in the bond
market has been in convertible issues The
investment demand has been quiet United
States old fours, registered, and the fves
have advanced Il per cent. on call.
Following are Saturdays share sales and
the recorded price changes:
High Low Closing
Stocks. Sales. est. Bid.
Atchison ................ 13, 800 9les 81 9lL
Atchison pref .......... 100 10l4. 1918 1919
! Baltimore q ohio.... COO Jog 1854 1OSA