The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-08-24
WEEK IN WALL STREET
1T HAS BEEN MARKED BY VACIL-
LATIONs OF SENTIMENT.
Weakness of the Early Part Generally
observation-disclosures of MIR. Nor
gan's Return from Europe.

spite Of some brisk operations on the part
Of speculative pools and a substantial in
crease in the surplus reserves of the banks,
which is usually made a signal for an up
ward movement of stocks. 1t did not escape
notice, however, that the actual reserves
of the banks failed TO show the expected
small improvement, the turn in the tide or
the subtreasury operations having taken
up entirely the contribution TO the money
market made earlier in the week The con-
traction in the loans OF $40, 460 100, shows
that the funds which supplied the stock
market during the week came from the
trust companies and from proceeds OF bor-
rowings abroad, as had been supposed.
The action Of the banks in reducing their
loan account is in expectation of the COM
ing demand from the interior which evident
ly has set in for the season. The decision
to postpone the dissolution of the Southern
Railway voting trust by refraining from
the declaration of the dividend on the pre-
ferred stock had only slightly depressing
effect on that companys stocks, as it is
supposed to be a Etep towards the COM
pletion of the arrangement with the L. &
n. Colorado Fuel was erratic and became
weak after an early advance. The newly
|
Southern Pacific published extensive an
| nouncements to explain the faith that was
| in him, and the demand for Pennsylvania
was supposed to come from the same
! source. The moderate advances that fol-
! lowed these movements and the publica-
| ton of the bank statement met selling to
realize. and the market closed irregular.
| a somewhat vacillating sentiment re-
| garding the speculative outlook has been
| reflected by the fluctuations of the prices
| in the stock market during the week. Con-
/ ndence has continued undated over the
! prosperity of the general conditions in the
/ country, but solicitude has been manifested
| at different times over the resources of
| the money market to carry the present eX-
/ banded credits through the period of ex-
| panded circulation or money IN the coun-
! try. The return TO New York of j. p.
| Morgan, after an extended vacation, caused
! rise of speculative animation, which was
| followed by sharp reactions. AS there has
| been speculation for some time past over
| the expected developments TO follow Mr..
! Morgans return, and as those develop
| mentS were not announced Immediately,
! the realizing of profits was a natural con-
| sequence, according TO the custom of
! speculative buyers. There can be no doubt
! that there are settlements outlined of i'm
| portant problems which have awaited Mr..
| Morgan's approval and advice, and which
| will have important effect on financial
! affairs, but the hopes professed In specu-
| lative Quartegs of the rapidity and scope
! of these decisions were somewhat absurd.
| 1t is evident, also, that the speculation has
already partly, If not wholly, discounted
| the effect of some of these projects. The
| belief that the anthracite coal miners
! strike would be Immediately settled by Mr..
| Morgan's presence was naturally disap-
/ pointed. The faith is strong in Wall street,
| however, that the end of this struggle is
| approaching, and that the suspension of
mining is not likely to extend into the sea-
| sons demand for winter supplies.
The undecided situation in which l.. q
| n. has remained ever since the passage of
control in the speculative buying of the
CT all In fIA nrN1 hoe.
| quent deposit of the stock with j. p. Nor
| gan & Co. for settlement is not likely
to endure much longer. Efforts to discount
| this settlement have been an important in
| fuence I'm the market not only on that
| stock, but in the whole Southern field, as
| IL is expected that comprehensive re-
adjustment of railroad relations in that
field will be involved. The entry of the
| St. Louis & San Francisco into that field
is supposed TO enter into the final settle
/ ment, and the movements of the Gould
stocks have suggested the possibility that
| they also are involved. 1t is evident also
| that the situation caused by the impair
| ment of the health OF the president OF
the United States Steel corporation com
manded the early attention Of the leading
| spirit in that combination.
Mr. MOrgans assumption of the direction
of the far-reaching affairs which he COM
mandS was therefore an important Incl
dent in the financial world and was clearly
| reflected in the stock market.
There was also an easier tone developed
in the money market, after a slight furry
on Monday as a consequence of the un-
favorable bank statement of last Saturday
The source of the relief TO the money mar
ket not obvious. 1t alleged at
first to be due to funds attracted from the
| interior by the higher rates prevailing here
but this view was regarded with skeptisicm
in view of the active money markets OF
the interior and the transfer of some funds
from New York to interior points. The
more likely explanation that the New
York trust companies were placing loans
in the local market, and thus relieving the
pressure on the clearing house banks. There
were also further large transfers of credits
to foreigners early in the week but as the
money rate here relaxed the foreign ex-
| change rate hardened and the offerings OF
finance bills in the exchange market di-
! minished markedly. The fact that a further
20 per cent. installment Of subscriptions or
the $3.50. 600 600 British loan becomes due or
Sept A. the talk of an early issue of q
Transvaal loan in London and the report
that the French government will issue soon
a new lean of $3.50 100000 were additional in
huences in hardening the exchange mar
ket in which the short interest is now very
| large. London also sold stocks here stead
lily all week
The bond market was unsettled this
week. The reduction of the yearly interest
disbursements on the Central of Georgia
first income bonds from 5 to per cent
resulted in active liquidation. The genera
market has been irregular and the only i'm
pOrtant dealings were the speculative is
sues United States new tours and old tours
advanced r. the twos Is and the fives a
per cent, as compared with the closing
call of last week.
The following table shows Saturdays range o.
quotations on the New York Exchange.
IGranger FarweIl's Telegram1