The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-07
QUIET WEEK in STOCKS
MONETARY CONDITIONS OPERATE To
REPREss SPECULATION.
Prospects of Imminent Foreign De-
mand on New York GOld-DOmestic
Situation Also Is Bad.

during the first hour was followed by re-
buying after the bank statement appeared,
the weakness of the showing having been
so well discounted that its publication in
duced nc outside selling. 1t is reported
that some large sums of cash are going TO
nearby cities for use as change in holiday
business. 1t is expected that the heavy
customs collections by the government will
continue for another week on account of
the large importations for the holiday
trade. The small loan increase by the
banks was not unexpected and it was even
feared that a considerably greater ex-
pansion had occurred in that item, as sew
eral large transactions are known to have
been made in the loan market. The foreign
houses are now the important factors in
the loan market and it is believed that the
resources for these loans have been secured
by drawing foreign exchange, which is in
effect a short sale of exchange The high
rate for time loans serves as an attraction
to foreign lenders. There have been very
large repayments OF foreign borrowings
for some time, which are believed to have
been secured on very advantageous terms
for employment in the stock market. Their
expiration was an important influence in
the recent heavy liquidation in the stock
market. Some of these funds seems to
have been reloaned during the past week
at the better terms now prevailing.
Operations in the stock market this week
have been confined to the testing efforts of
the professional traders. Some attempt
was made to lift prices early in the week
on the assumption that the Dec. / disburse-
ments to the money market would relieve
the tension there and afford resources for
speculative operations. but the week
progressed it was realized that whatever
relaxation there might be in the money
market was only temporary. The tighten
ing process was manifest in the time
money market, in which commissions were
exacted for loans for the shorter periods
which raised the rate TO the equivalent OF
per cent. The week passed without any
export Of gold to Europe, but 81 900 900
went 10 South America TO pay English OBJ
analogous to a remittance from here to
London direct. The Bank of England has
given up large sums of gold also for ship
ment TO South America, and ii is thought
probable that further calls may be made
on New York. The export of gold from
New York. directly to Paris or London. is
believed to have been evaded only by a
large use OF bankers credit, by selling of
bills of exchange to be covered by pur-
chaSes later. a short interest in sterling
exchange of many millions of dollars is
said to have been created in this way. The
London money market has grown easier
under the influence of large government
disbursements and the payment on Monday
TO shareholders of the constituent COM
panies in the shipping combine so that
large repayments have been made TO the
Bank of England, which has left its
minimum discount rate unchanged. Large
forces of depletion are at work, however,
on the banks reserve, and an advance in
the bank rate Is looked for before the end
of the year, and such an advance may draw
gold from New York. In New York the
banking reserves are suffering heavy de-
pletion from domestic sources. Customs
demand payments to the subtreasury
average 100000 daily. The return move
ment of currency from the interior Is also
delayed and large remittances have been
made to New Orleans. 1t is rumored also
in banking circles that loans made di-
rectly in the New York market by inter-
and while call money ruled high here have
been withdrawn on a very large scale. The
result is to increase the demand on New
York banks for loans. at the same time
that inrOadS are made on their cash re-
serves. Importance is attached to the
operations of the New York trust COM
panies, which are not so obvious to the
public, owing to their exemption from the
requirement of weekly reports of condition
to the clearing house. The ordinary bank
ing and loan operations of these institu-
lions have grown on an enormous scale
during the year, and the approach of the
year end brings incentives to strengthen
their position. This process is likely to
throw an additional strain on the banks.
The extent to which flotation of various
organizations and combinations may figure
in the operations of the trust companies is
subject of much interested conjecture.
The present slow market for new Sc
curitieS adds to the Importance of this
subject. Interior money rates continue
high and the continuance of active trade
at high level OF prices maintains the de-
mand for credits throughout the country
The possibility of year-end money squeeze
has been the dominant factor in REFRESHING
all activity in the stock market. and fnan-
cial powers united in frowning on spec
ulative use of resources, which evidently
will be needed for more essential purposes
There are elements in the trade situation
| as well, the definite outcome of which il
is desired to await. The advancing ten
dency of wages of railroad employees and
the raising of transportation rates as
set-off is extending over the breadth of the
| continent. The effects on railroad net earn
| ings, on volume of freight, on cost of ma
ter1al transported and on final demand for
| consumption must be readjusted. In the
| iron trade also authorities report a general
| tendency rather downward and the holding
back of some work because buyers find
the cost too high, the more so as present
| stocks of material are exhausted. The eff
| forts of professional traders to awaken
| speculation on the score of the President
message and governmental affairs met
| with little outside response. Some appre-
| hension has been expressed that discussion
| of currency changes would cause uneasi-
ness among the foreign creditors OF the
| country and help to unsettle the vear-end
| arrangements with them The renewed de-
| cline in silver and firmer tone for copper
| have been Incidental influences upon Sc
curities.
The undertone of the bond market has
| been depressed in sympathy with stocks
United States threes, coupon declined u
| per cent, as compared with the closing cali
| of last week.
| Following are Saturdays share sales and
the recorded price changes: