The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-09-21
CASH RESERVE DEPLETED
THIS CAUSES LIQUIDATION IN NEW
YORK STOCK MARKET.
Selling Is Not Urgent, but the Market
Closes Easy-specuIative Feature
of the Week Just Closed.

clearing house banks were 81, 642, go below
the legal requirements. This was In spite OF
the contraction in the loan account OF ST.
964,5 500, the shrinkage in the cash holding
having reached 1851. 100, as against prelim-
mary estimates of less than 100000. An
active selling movement followed the APP
pearance Of the statement, which effectually
wiped out the previous gains, which had
been established under the leadership of the
aggressive advance of ga on large buying OF
st. Paul. There was no appearance OF ur-
gency in the selling, and the losses estab-
lished were not severe. The market closed
distinctly easy. and with no effective rally
from the decline, beyond the covering de-
mand from room traders who took quick
profits on the decline. The last time when
a deficiency in the reserves OF the New
York clearing house banks occurred was for
the week ending Nov. 4. 1899. The reserve
continued at a deficit for several weeks fol-
lowing, In spite of large loan contraction.
the deficit reaching &, 1855 $50 on Nov. IL, and
disappearing on Nov. Is as a result of the
relief afforded by the offer of the then Sec
rotary Gage to purchase $25,000,Oc0 8 per
cents. and tours OF 1907. This was the
period of the first large fiotation of indus
trials. and the overspeculation which had
occurred in them left the stock market Vul-
nerable to the influence of the tight money
which persisted into December. Further
loan contraction is clearly indicated by the
present condition Of the banks.
The situation and outlook in the money
market have dominated the speculation In
stocks throughout the week. Losses have
not been severe at any time. and the early
declines were largely recovered towards
the end OF the week, as the rates for call
loans at the Stock Exchange showed a
steadier tendency. But there was no re-
vival of the animation which characterized
the speculation up to the time IT was inter-
rupted by the money squeeze, and only a
few stocks showed any considerable &C
tivity, even after the relaxation In the
stringency Of the money market. IL Is
probable that the restraint OF speculation
| had much to do with the quiet tone of the
money market, although some relief was
afforded from the process OF depletion or
New York banking reserves, without, how
ever, entirely arresting 1t. All pressure
of liquidation seemed to be promply re-
lieved as soon as the calling OF loans
ceased, and prices of stocks were easily
lifted again without inducing any impor-
tant renewal of the selling. This was a
reflection of TIE unvarying confidence
which is felt in the promise or active trade
and prosperous conditions during the COM
ing season. Some effect was manifested
early In the week from the freezing wealth
er in the Northwest and the reports OF
damage to the corn crop, but the Delfer
| that the crop is practically made and be-
yond the reach of serious harm overcame
this influence. The continuing bad reports
of the cotton crop were a more persistent
| influence. Rumors of a formal settlement
of the anthracite miners strike We're fol-
lowed by disappointment, but there was
evidence of a considerable increase IN ooe
a belief that the trouble Will wear ltseil
out.
Extraordinary activity continues in the
iron trade, the production and the making
of contracts being limited only by the sup
| ply of material both domestic and imported,
the domestic supply still suffering from
| shortage of fuel. The iron and steel STOCKS
quite generally advanced and various other
industrials reflected the favorable conditions
in their special trades. The tight condi-
ton of the money market and the danger
there of future fiurries were the only appar-
ent drawbacks to the advancing tendency
of stocks. The very activity or trade and the
large requirements thus created was one OF
the factors that threatened the money mar
| ket, and especially the convenience OF those
who are committed to speculation with
! borrowed funds. With unusually large crops
TO be moved, a condition OF expanded creolts
the country over, and the foreign exchange
situation complicated by the heavy de-
crease In exports due to last years crop
shortage and large foreign borrowings
made in anticipation of a sustained export
trade. the situation Is still further ag-
gravated by the Unexpectedly large Gus
toms collections and the approximate ex-
haustion of the available means Tor re-
| leasing the governments surplus revenues
to the market Since July / the govern
| ment has collected over sixteen miinons OF
| dollars more for customs than In the cor
responding period last year, which Is sew
| erai millions more than the reduction In
the internal revenue from the repeal OF
Increase of over $4,000, 900 in the govern
ment expenditures that the current sur
plus has been reduced about one-third, but
payments for customs dues are made al
most exclusively in New York and make
a daily drain on New York bank reserves.
Last year the United States treasury
was purchasing bonds at this period at
the rate of several millions a week. This
week the offer to pay the Oct. 1 govern
ment interest has resulted in the disburse-
ment of less than s2,oo0.0o to the New
bonds held by national banks have been
used to the extent OF over 100000 as Sc
curity for increase of government deposits
with banks, but practically none OF this
has gone into New York ranks. The pay
ments to the New York subtreasury on
account of customs and the deposits with
that institution of currency for ,telegraphic
transfer to the interior have largely ex-
ceeded the disbursement of government in
terest, so that bank reserves have not en-
toyed any actual regeneration from that
source. The feasibility of additional meas
ures of relief by the Treasury Department
nave been actively discussed during the
week in Wall street, but none has been
found which meets the approval OF the Sec
THE 20 per cent. money rate on Monday
sent the sterling exchange rate down to
a point which mace possible tHe SHSdSe-
ment of gold for import to the extent of
s3.5O0.OOO in London or in transit to thai
point. Shipments from Australia made
this week or before bring the total gold
bound for this point to about $S,0o0.00, due
to arrive in the next three weeks. The
future condition of the local money mar
ket. 1t is believed. will turn on the addition
al amounts of foreign gold which can be
secured on profitable terms for shipment
TO New York. Bankers agree, however.
that with the additional interior require
ments for currency still TO be met there
is a probability of tight money in New
York for several weeks to come.
Bonds have been dull and irregular in
sympathy with stocks. United States ives
advanced u per cent. new fours II per
cent, the threes y per cent, the twos and
the old tours IA per cent, as compared
with the closing call of last week.
TIL following table shows the range of
stock prices on Saturday:
lGranger Farwel & Co.'S telegram
Stocks. Open High Low Clos
ing. est. est ing
Am. Grass Irvine CO... ISIS - -. So.
NJ