The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-21
WEEK in WALL STREET
BETTER TONE HAS DEVELOPED
THAN FOR SOME TINE PAST.
Bankers Pool to Protect the Money
Saturdays Price Changes.


much significance to to-days desultory
trading in stocks which was almost wholly
in the hands of professional operators.
Commission houses reported falling off in
the recently renewed business. This mar
ket is disposed to take on an attitude of
waiting. after the weeks covering move
ment, realizing that the money market
still has heavy demands to meet, notwith-
standing the feeling of greater confidence
in its ability to do so as a result of the
existence of the bankers protective pool.
The bank statement emphasizes the de-
STABILITY of conservation in the use of
credits. The loan contraction of s3,51O,22O
was received with satisfaction, but the re-
sulting decrease in reserve requirements
was still insufficient to Offset the shrink
age in cash, which was 81, 100. This still
leaves the surplus at over $S.000,000. COM
pared with $5,7S5.S27 year ago. Next week
$lO,Oo0,0c0 subscriptions to the Western
Maryland syndicate must be met, followed
by other syndicate requirements and the
preparations for the yearly disbursements.
The stock market rallied sharply after the
selling incident to the bank statement, and
closed firm. A sudden squirt in Sugar to
129 helped the final rally. That stock had
been strong throughout apparently on the
VI
the Cuban reciprocity treaty. There was
also an animated speculation in Texas Pa
cific, which rose to AIS and then fell to 1885
under very heavy offerings.
There was some investment demands for
bonds, which were firmly held.
The stock market opened weak on Mon
day. with a threatening break in prices,
which promised renewal of the democrat
lied conditions of last week during the
period of forced liquidation. The announce
ment was made on Monday of the forma-
Of han yer~s nafn tive ha
subscriptions to which amounted TO $50
O00,000 this sum TO be liable for loans on
call in case of emergency in the money
market. The liquidation in the money
market was Immediately checked and some
recovery ensued. The effect of this meas
ure was in some doubt for two days fol-
lowing, but it was ultimately the cause or
restoring degree of confidence; Supple
mented by other favorable factors the re-
suit was to remove the general feeling OF
depression and to induce a rapid recovery
in the market. This ensued without dol
lar of the $50, 200 being drawn upon Inc
knowledge of the existence of this reserve
fund served to induce freer offerings OF
funds from other sources, ana 10 unlock
some resources that had been jealousy
guarded either from timidity or from de-
sire to take advantage OF higher rates,
which were quite generally expected to rule
before the end of the year; Rates Ior
money have steadily declined during the
week. six months loans being shaded to
below per cent, and the premium on
loans for shorter periods has disappeared.
On the first announcement or the tofma-
ton of this bankers pool there was some
disposition to attach a sinister significance
to it as symptom of more serious state
of affairs in New York than had been gen.
orally expected. The measure does not
differ in kind or degree nom those aaop ...
heretofore these measures were In the
hands of the clearing house authorities,
while in the present instance the manage
ment is confined to private hands.
Besides the strong sentiment effect or the
protective pool the actual developments OF
the week tended to strengthen the conol-
ton of the banks. Receipts of currency
were large from the interior and the drain
by the subtreasury was much relaxed. Fart
of the government requirements seem 10
have been drawn from other centers ana
large pension payments at New York have
relieved the banks. One of the most reas-
surfing factors in the money situation mas
been the continued softnesS or the foreign
exchange market, Notwithstanding the
easier tone OF the local money market
This has been partly due to large supply
of grain bills, and it is hoped that me
break i'm the corn market will result in in
creased takings for export and an aool-
tional replenishment of the exchange mar
ket. 1t is manifest that New York bank
ers have been able to negotiate additional
credits in foreign markets as well as to OBJ
tain extensions of maturing loans, which
has been difficult to do for some time past
London has been moderate buyer in the
New York market, and the proceeds or the
sale abroad of the 100000 OF Pennsyl-
vania. Car Trust certlncateS nave peeH
partly available in the exchange market
A willingness on the part of foreigners to
make new investments in our securities,
which they have conspicuously refrained
from doing at the high level Of prices re.
Gently prevailing, would be development
| of prime Importance in providing means
| to settle the somewhat overstrained foreign
| credits
| An almost approximations dread attached
to the APPROACH of Dec. IL, the seventh
anniversary of the so-called Venezuelan
| panic due to President Cleveland's message
on the boundary question; The passage
| of the anniversary on Wednesday without
| trouble undoubtedly prompted buying of
stocks on the part of those whose fears
had been aroused. Very large short lines
| were covered throughout the week, and
| there was substantial aid to the recovery,
especially in some speculative favorites,
| where organized pools have directed a
campaign against the shorts.
| The bond market moved in sympathy
| with stocks United States new fours de-
| clined y per cent. as compared with the
closing call of last week
| Following are Saturdays share sales and
the recorded price changes: