The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-03-10
QUIET WEEK IN STOCKS
WEIGHT OF MONETARY CONDITIONS
REPREssEs SPECULATION.
Depletion of Bank Reserves "a Serious
Cause for Uneasiness-GOId Ex-
ports Still to Come.

NEW YORK, March s.-Considerable in
terest conferred in the bank statement to-
day, and pending it's publication operations
In the stock market were without much
significance except in a few stocks. The
early market showed some irregularity. but
the prominent railroad stocks were firmly
held and the limited selling was chiefly
in the specialties, particularly Colorado
Fuel. Moderate buying of Missouri Pacific
and Rock Island advanced those stocks one
to two points, and there was a disposition
to cover later in the specialties, bringing
the entire market above last light. Colo
RADIO Fuel was lifted "a above yesterdays
close, but dealings were unimpOrtant In
the other metal stocks except Amalgamated
Copper which showed momentary strength.
There was some renewal of the recent de-
mand for inactive stocks, but material adj
vances were confined TO Pacific coast com
mon and second preferred, Westinghouse
Electric, Minneapolis q st. Louis and Pa
clhc Mail, the latter being bought on ex-
pectations OF a renewed agreement with
the Panama Railroad Company. Publica-
ton or the bank statement showing a cash
loss of nearly 100000 which more than
doubled the preliminary estimates, started
selling of the general list. Prices, how
ever, did not yield much except in some of
the stocks which had ~adVance earlier, and
there was no decided pressure at any point.
Some satisfaction was felt at the loan re-
duction OF S3,OOO,OOO, this being the first in
nearly TWO months. Inc immense cdSn loss
was quite generally attributed to the
vagaries of the banks average system.
With surplus reserves down to less than
S4.OO,OO0 and the gold export movement un-
checked the opinion naturally prevails that
higher money rates are imminent. The
stock market closed active and easy.
There had been some movement of prices
or stocks during the week. but il was by
no means consistent, and was not we'll held,
the market showing a tendency to return
TO Its former level whether from advances
or declines. The money market situation
was the cause of uneasiness, which became
rather acute in midweek. This was due TO
the calling OF 70 per cent. Of the syndicate
subscriptions to the San Francisco traction
merger and the announcement that remit
tanceS would be made to San Francisco
through the subtreasury by Geographic
transfer. This would mean the withdrawal
OF money from the New York money mar
ket for deposit in the subtreasury and it's
payment into the San Francisco market
from the Subtreasury there, an operation
which the governments large holdings of
gold in San Francisco would make con-
venient for the Treasury Department.
Wall street was mystified at the same time
by the inquiry at Washington by New York
bankers as to facilities for transferring IN
this way $4,000, 600 TO 500, 900. 900. This threat
ened an lnrOad on New York reserves be-
yond anything anticipated and promised a
serious situation in view of the low level
of the surplus reserves of the banks and
the other requirements for gold exports
which had to be met. The equanimity OF
the speculative mind was somewhat upset
In consequence and prices were inclined to
give way. They recovered when IL was an
nOunced that the San Francisco remittances
had been arranged for through the regular
exchange market and would be settled with
out any actual movement of cash, which
those interested in exchange banking
seemed desirious of avoiding. This episode
seemed mainly responsible for the principal
price movement of The week.
The sensitiveness of the market to the
condition of money reserves is perfectly
reasonable: With the loan and deposit
items of the banks at higher figures than
ever before, the small surplus represents
an even smaller proportion of actual re-
serves than is indicated by the nominal
reserve. In fact, under the system of com
putatiOn by averages used by the clearing
house banks with aggregate figures such
as those now involved in deposits and re-
serves, the present surplus reserve of the
banks must be regarded as a purely NOM
inal one and subject to changes on either
side of the line OF the legal reserve limit
from day TO day. 1t may easily be seen
that an intimate knowledge of the condi-
ton of the large syndicate loans is the
reason for the unruffled placidity of the
money market in the face of the nominal
showing by the banks. The liquidation
of even one individual syndicate might
put a different face on the whole money
situation over hight. The powerful COM
binations which have kept close upon the
available credits Of the market since the
first of the year have every interest in
conserving the quietude and steadiness OF
the money market and are possessed OF
enormous resources for doing so.
The New York money market, however,
is by no means exempt from the influences
of foreign money markets, by reason OF
large obligations still outstanding as a
result of enormous re-purchases of Amer
lean securities from foreign holders in last
years struggle for control of transcon-
tinental railroad systems. AS a consequence
the requirements by one foreign center
upon another for transfer of gold can be
shifted on New York. That is what is be-
ing done now by London to meet the de.
mands Of Paris on that center. The Lon
1 dor f0TfG nEf1n0nfnE- that r1n f. -
debted TO continental money markets in
no less a sum than $500, 600. 900 in short-time
loans, Of which fully half is owing t.
French capitalists. The purpose of the
Sank Of England to keep control of the
London money market and keep up the
money rate there, so as to protect that
market against Withdrawals Of capital. /.
therefore easily applicable, the more Sc
as the end of the British fiscal year is an.
preaching and provisions must be made FOL
another large loan to meet the require
ments of the coming year. The Bank q
France also has accumulated the larges-
stock of gold ever held in it's vaults, not
w~ithstanding the duIlness of French trad,
and industry, indicating preparation fol
some special demand on its resources. Thi,
situation supplements other factors ad
monishing towards caution and conserva
tism in the speculative employment of cap
The Northern Securities Companv cas :.
is an ever present factor in Wali-stree
considerations. The season of uncertaint,
over the cOuntry's crops is always on,
OF normal guinness In speculation. Their,
remain many labor problems, for the com
ing year TO be worked out. The country
very large bank clearings, the prosperity
of the iron trade and the absence of ser
ious impairment Of railroad earnings keer
the undertone Of the stock market firm
and confident and have given opportunit,
for some striking upward movements il
special stocks of secondary Importance il
the market.
Bonds have shown some decrease from
recent activity, but the level Of prices wa.
we'll maintained limited States fu-O- "a
vanced y. the threes u. new fours, coupon
Il and the old fours 3 Der cent. over tn
closing call of last week.
+ Following are the days share sales an,
the recorded price changes:
, Stocks. Sales. est. est. Rid