The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-08-29
DEPLETION OF RESERVES
A VERY REPREssIyE INFLUENCE on
SPECULATION IN STOCKS.
Heavy Demand for Currency from the
west-A Few Noteworthy Points of
strength i'm the Market.

NEW YORK. Aug 2S.-There was consid-
cradle further contraction of activity in the
stock market to-day. and the animation
which has been shown on the previous
DAYS of this week was lacking The specu-
Iatfve disappointment caused by yesterdays
reduction of the dividend on Reading first
preferred and the anxiety over continued
depletion OF banking reserves through the
interior demand for currency were response
BILE for the pause in speculative activity. II
was apparent that some sharp loss was
caused by the plunging in Reading yester-
day before the dividend reduction was an
nounced. and In AtchisOn the day before,
previous to the report of the shrinkage in
July net earnings. There was some further
selling in these stocks to-day, and Illinois
Central reacted sharply from yesterdays
show OF strength. After pressure TO sell by
Disguised holders on margin had relaxed.
prices were pushed up here and there was
a rather sustaining effect the rest of
the market. No stocks of the first grade
were concerned in this movement, which
confined to minor railroad stocks and
to some rarely active specialtes, notably
the gas stocks and the express stocks.
Talks of consolidation accompanied the
strong rise was unexplained. The upward
movement in Canadian Pacific seemed to
be due 20 reports of the redemption of the
company's Immigrant bonds. The Toledo,
st. LOUIS & Western stocks, the Wisconsin
Central stocks and the St Joseph q Grand
Island stocks enjoyed the benefit of the re-
vival of old rUmors of absorption by strong
er interests Colorado Fuels early break
q % ma inn Of ra1
between the contending interests in the
property was followed by violent recovery
and again by reaction. The undertone of
the market was decidedly improved after
the early pressure relaxed, but there was no
disposition toward the revival of enthusi-
asm with which stocks recently have been
bought.
The improved feeling was partly due TO
the reports current OF measures in cOntem-
plation for the relief of the financial situa-
ton. report was formulated that the
large banks were concerning measures to
secure by purchase or borrowing a sufii-
cient increase in holdings of government
bonds to enable them to expand their note
circulation TO substantial degree. 1t is
hoped thet bank notes can be shipped TO the
interior to meet the demand for circulation
and thus afford protection to the reserves
of lawful money with the banks. 1t was
asserted that preparation had been made
by the Treasury Department TO supply
promptly the demand for new bank notes,
which Is supplied very slowly as rule,
owing 10 the time consumed in engraving
and printing notes. 1t has been supposed
that the available supply OF government
bonds had been pretty we'll put off the mar
ket. but the belief that the available means
| for releasing surplus government funds to
the market have about been exhausted has
stimulated efforts to find other means of
| relief The deposits at the subtreasury for
| transfer TO the interior to-day amounted to
100000, of which 100000 was for New Or
| leans and 500 900 for San Francisco With
out counting to-day's operations the sub
| treasury has absorbed from the market
since last Friday S,272,O00. The movement
| OF currency through the regular express
channels is believed to have been heavily
| against New York also. II is evident, there
/ fore. that speedy exhaustion of the mar
| gin OF surplus reserves of the clearing house
| banks is threatened.
The bond market was less active to-day
| and irregular. Total sales at par value were
| 81, 600. United States old fours advanced
| Il per cent on the last call.
The following table shows the range of
| DriCPS