The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-01-26
SPECULATION is DORMANT
EASE OF MONEY MARKETS ExCITEs
NO INTEREST IN STOCKS.
Bond Issues, However, Are in Strong
Demand-New York Bank Reserves
Are Much Increased.

to-day's stock market was about as mar
row as the recent show of strength and
seemed equally due to professional opera
tors, who took their profits in specialties
that have advanced recently. Sugar, Metro
politan Street-railway. c.. c.. c. & st.
Louis and Amalgamated Copper were all
thus affected, the last showing good power
Of absorption. New York Central was de-
pressed by the coroner's verdict, holding its
officials responsible for the Park-avenue
tunnel disaster. There were sharp advances
in Rutland preferred. St. Lawrence & Adj
rondack, Peoria & Eastern, Chicago &
Eastern Illinois, and the National Lead
stocks, the last on the announced advance
In the price of lead. The decline on the
bank statement was probably due to its
failure TO attract any buying to absorb the
profit taking. The gain in cash was fully
up TO expectations. The fact that interior
institutions have been placing loans in New
York led to some hope that a corresponding
reduction in deposits would result to the
New York banks, but the statement failed
to show this On the contrary, loans of the
local banks have expanded s2,H3,50O. The
influence of this showing is emphasized by
the compilation of the annual showing of
the New York trust companies. The loans
on collateral by these institutions on Dec.
81 $40 2Os, FOG. compared with 1887 81, Ala
a year before. They report cash on hand of
only So ,7O2. The market closed active and
easy at about the low point
Prices of stocks have drifted sluggishly
upward or downward during the week. The
operations have obviously been entirely in
the hands of professional operators and as
hat htrx~
OF reselling at a slight advance, and as
their selling was simply profit-taking on
earlier purchases. or to cover at a slight
decline in prices the weeks transactions
have resulted in little real change in the
relative position of holdings. The few
stocks in which there have been dealings of
any consequence, or in which the price
movement has been appreciable have been
influenced by individual causes In a gen
eral way their course was downward, early
In the week, and upward by recovery in the
latter part of the week. The somnolent
condition Of the market is suggestive of
indigestion and surfeit, due to the enormous
activities and deglutition of last year.
The conspicuous feature of financial af-
fairs during the week has been the large
refiux of money to the great reserve CEN
tiers Of the world New York has felt this
tendency, though not to the degree that
foreign reserve centers have experienced ii.
In foreign markets also this re1ux of
money has had a very perceptible stimulat-
Ing effect on speculation, while in New
York the dullness of the market has been
rather accumulated The most pronounced
recuperatton or money reserves has been
in Berlin, where a condition approaching
redundancy has resulted. The Prussian
and imperial loans, amounting to about
Si0,OOO, 0UO, have been subscribed for many
times over. and Berlin has been buying
discount bonds in London TO an extent suf-
fcient 10 AFFECT the market rate there, and
there has been fall in the market discount
rate at Berlin at the same time. Probably
this was an influence upon the action of
the Bank Of England directors in reduc-
Ing the bank rate, as the German demand
for accounts would offset the dreaded with
drawal of French capital from London in
the event of a fall in interest rates there.
The Bank of France also shows a strong
condition in Paris, and little inducement TO
call home capital 10 that center.
This condition has a direct bearing on
the New York money market and prom
fses opportunity for renewal of the foreign
obligations of this market, which are
known TO be heavy, and which ii was
feared would have to be met by gold ex-
ports The export of less than $500. 900 in
gold on Tuesday was believed TO be on &C
count OF New York subscriptions to the
German loan, and not a regular exchange
transaction. The accumulation of idle cap
ltal in Berlin was a condition sure to re-
suit from the prolonged liquidation and
depression in Germany, and the movement
to reinvest ii may be regarded az a sign
that the turning point of the long depres-
sion has been reached there. No sign has
been seen, however that German capital is
seeking any investment in the New York
securities market. In London, also, the
easier money conditions and the hopes of
an early termination of the Boer war have
led to a lively revival of ''Kaffir circus"
but London has shown no disposition to
embark in New York stocks. In fact, Lon
don has been a steady but moderate seller
of stocks in New York all the week
In spite of the easier money conditions,
the fact has developed this week that some
large loans for New York account have
been secured at interior money centers.
This is one Of various symptoms that the
New York banks are DESTROYS of keeping
their reserves in hand for the present
The report of the controller of the cur
rency for December reveals that the ma
tional banks of the country have expanded
their loans during the year some 1881 700,-
600. During the same period the cash re-
serves increased only about $4,000 00O II
is well known that large proportion of
the reserves of interior banks are on de-
posit with New York banks. The same is
true of the great trust companies in New
York city whose operations and whose loan
expansion have had great growth during
the past year. AS holders of the ultimate
reserves of the banking system of the
whole country, a special responsibility is,
therefore, thrown upon the New York
clearing house banks in the event of any
credit contraction. There is a general feel
ing of satisfaction in conservative flnan-
cial circles that speculation should be al
lowed TO lie dormant for a time to allow
the natural forces at play in the cOuntry's
prosperous activities to oyertake, in some
degree, the expansion of credits.
The business in the bond market has
been larger in proportion than in stocks
and many long-dOrTnant issues have be-
come active at advancing prices. United
States refunding twoS, the threes, regis
tered. and the new fours advanced u and
the old tours u per cent. The fiveS, regis
tered, declined Is and the fives coupon u
from the closing call of last week.
Following are Saturdays share sales and