The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-06-22
EXPANSION OF CREDITS
MENACING FEATURE OF THE PRES
ENT FINANCIAL SITUATION.
Relatively Quiet Last Week,
Except on Wednesday and Thurs
day-Depressing Influences.

NEW YORK, June &.-To-day's dull and
professional stock market calls for little
comment. An advance of over a point ia
United States Steel was a sustaining force
in the opening dealings. The demonstrative
buying by brokers usually employed by the
syndicate helped this movement. The South
western railways made some show of
strength, st. Louis Southwestern preferred
rising IL. The effect of these movements
never extended far. The whole list turned
heavy On the appearance Of the bank state
ment, and the close was easy, with prices
slightly below last night for the most part.
The bank statement showed a gain in cash
of less than 81, OOO,O 900, while the estimates
had been for nearly 100000. Deposit liabil-
tiles were increased by a loan expansion of
nearly $S,OOO,O0. The net result was an en-
croachment on the surplus reserve of ST.
IA, 100. On the eve, of preparations for the
July settlements the showing was consid-
cred disquieting, especially in view of the
continued 1rmness of foreign exchange.
TIL organized campaign to advance prices
Of stocks, which has been in evidence for
some time past, gathered volume and force
this week and carried prices up with a gen
eral sweep on Wednesday with the largest
dealings for one day since early in May.
On Thursday there was a movement to
take profits by the bulls, and an aggressive
attack by the bears caused a sharp re-
action and pause. The bull party had some
adverse factors to deal with, which were
ignored early in the week, but which gained
in influence on sentiment when the reac-
ton set in. In fact, the advance had little
immediate news development as explana-
ton, and seemed based on the general as
supmtion that. the sustained general pros
perity Of the country justified higher prices
for securities. The unexpected increase in
the stocks of the Illinois Central and the
granting of rights to stockholders to sub
scribe at par gave the whole market its
fill up on Wednesday and helped the bulls
to take profits with the first appearance of
real outside interest in the market that has
been aroused
The manner in which unfavorable news
was ignored on the rise is shown by the
prominent place taken by the Reading
stocks In the advance, in spite of the
miners strike and the continued paralysis
of the anthracite trade. Professions of
confidence in the success of crops and sug-
g~estiOns of probable increase of dividends
in railroad stocks were the ostensible mo-
tives for the buying of the grangers
which were prominent in the upward move
ment. The Gould railroad stocks, as a
group, led by Missouri Pacific, were con-
spicuouSly strong because of an apprecia-
ton of the improved strategic position of
these properties in the railroad world by
reason of recent acquisitions and extern
siOns and the belief that a financial plan
for consolidation of operation is being
worked out. There were rumOrS of a con-
test for control of Reading ON the part of
the Pennsylvania and its subsidiary COM
pany, the Baltimore & Ohio. There was
little effort 10 belittle the importance OF
the anthracite miners strike and the call
ing of a national miners convention To
consider the extension of the strike into
the bituminous fields. The making per-
petual of an injunction against the CONVEX
sion of $500, 100000 of United States Steel
preferred stock into bonds has had a de-
pressing effect on the securities OF that
corporation and on the general ~fnanc1al
sentiment. With the Northe n Securities
project already contested in the courts,
the shadow of judicial disapproval is thus
thrown over the two most important imam
cial projects of the recent era or eXpan-
sion, and a large part of the results OF that
era are felt to be brought into question.
In the money market call loans have beer
| easily negotiated, but the outlook for the
future is not felt to be clear. The demano
for time loans has been a feature, as II
| was the week before. The advancing ten
dency of sterling exchange here and its de-
cline in Paris has called renewed attention
to the large obligations of this market tC
foreign lenders and the coming ERECT or
our money market of the maturing OF these
obligations. The discount rate has ad'
vanced at Paris and that center has with
drawn funds from London, which in turr
has sold securities here, creating a demand
for exchange to pay for them. The foreign
trade statement for May issued this week
by the Bureau of Statistics shows the
smallest trade balance in our favor fol
the heavy falling off in the volume OF ex-
ports Of all classes of agricultural articles
The exhibit is disquieting on account OF
the expanded condition OF our foreign
credits. OF domestic requirements the weel
has seen the announcement OF various new
bond and capital issues, including the open
ing OF subscriptions to the ship company
and Metropolitan Street-railway bonds and
various other projects. The July settle
ment requirements are yet to be met. The
July disbursements and the repeal OF the
war taxes are looked to for relief, boil
here and abroad. AS to this relief IL Is Il
be considered that on July 10 the Londor
market must provide for a 10 per cent. in
stallment of subscriptions TO the Sl60, 10000
consols issue, followed by two successive
monthly installments of 20 per cent. each
In this country the month of July Is likely
to witness the beginning of the interior de
mand for money TO move the crops. The
repeal of the war taxes is expected to af
ford some relief OF the requirements of thu
surplus revenue collections. But last year!
continuous relief by means of government
bond redemptionS is no longer open, bI
reason of the withdrawal Of the treasury
offer.
The large expansion of deposit liabilities
by banks and trust companies the countr!
over has often been pointed out in curren
financial discussion. The above facts ar
cOrrOborative of the need of conservativ,
policy i'm the use of credits.
The market for bonds has been quite &C
tive, but rather spotty and irregular. Unite'
States twos advanced Is, the three and OLE
tours, registered, Il and the old tours
coupon, IS per cent. The new tours declined
"A per cent. as compared with last week.
closing call.
Following are the days share sales an,
the recorded price changes:
High Low Closinl
Stocks. Sales. est. est. Bid
Atehison ...-."....... 400 S25s 81 s21