The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-02-17
WEEK in WALL STREET
MARKED BY AN INCREASE OF IN
SETTLING INFLUENCES,
Accumulated on Saturday by Poor
Bank Statement-COntinued Ease
of the Money Market

NEW 1ORh, feD. l0.-An exceedingly
erratic movement in Metropolitan Street.
railway confused the speculation in to-
days stock market and discouraged ac-
tivity elsewhere in the market. The large
scope of the plan announced and the large
resources demanded for carrying them out
caused some apprehension, as was seen
by the break in the stock to below los. after
an opening advance of over a point. This,
and the disquietude over the threatened
enforcement Of the tax on call loan col
l~aterass, caused some sharp declines in the
market, recessions reaching a point in some
OF the prominent stocks. There was a rally
before the appearance of the bank state
ment. Metropolitan Street-railway was
then taken vigorously in hand and marked
up TO 1850 over last nights last price. Anal
gamated Copper also became very strong
and moved up Csc. An over-eXtended short
account was seemingly responsible TO a
large extent for the rise in this stock. The
combined movement drove the shorts TO
cover elsewhere and the market rallied,
wiping out the important part of the losses.
Manhattan rose a point over last night.
There was a further jump of 3 points in
burlington, Cedar Rapids * Northern,
making II points in three days. Union Bag
preferred gained 3 points. The street Was
prepared for a further expansion of loans
and was apparently relieved that 1t was
no larger than $13. 499. 200, but the hope of
a gain In cash was disappointed and the
decline of S62S,1OO in that item raised the
question whether a return flow of currency
10 Chicago and interior points is imminent.
The market closed quite active and firm at
the rally. In the curb market there were
sales OF Metropolitan securities when Is
sued at 10, and the bid price was ad-
Fanced TO l6. There were sales OF the sub
scription rights at 6 and at 10.
The upward tendency of prices which was
estaDliSheo last week was carried over into
this week and there was an active market
with shifting points of strength during the
early part of the week. The selling to real
lie profits gained effect during the week,
however, the midweek interruption of the
holiday serving as encouragement to this.
and earlier gains were, in consequence,
much reduced, while in a few weak spots
wide breaches in values were made. The
operations evidently were in the hands of
speculative pools for the most part, and
disbursement over the unresponsive at
titude of the general speculative public had
much to do with the elimination of the
rise. There were, however, several changes
In actual conditions that helped towards re-
action. The proposal of the Brooklyn Rapid
Transit Company to authorize a bond issue
OF Sl5O,O0O,OOO was q chilling revelation. De-
tails are lacking as to the portion of this
issue which IL Is proposed TO float at once
and the purposes to which the proceeds are
TO be put. but the figures are formidable in
the suggestion of demands upon capital and
the future requirement for interest. Last
weeks great loan expansion by the New
York banks. which seemed to be ignored in
the early part Of the week, was given re-
newed consideration and revived anxiety
over the rapid expansion of credits.
1t is true that the loan expansion of the
New York banks since the first of the year
has only been a little more than half as
much as during the corresponding period
of last year, while the repleniShment of re-
serves has been much nearer the increase
OF last year, so that the present condition
of the New York clearinghouse banks is
not materially different from that of last
year. The position of the New York banks
as the holders of the greater part Of the Ill
innate reserve for the whole country has to
be taken into consideration New York
trust companies have increased their loans
on collateral TO an enormous extent during
the past year, while their reserves are on
deposit with New York banks, except for
an insignificant part, and figure In the re-
serves of the banks Deposits of interior
banks in New York are included in the
same way. The credit expansion the coun-
try over has, therefore. increased the liza
bility on New York reserves. This gives
added influence TO any suggestion of finan-
cial trouble I'm the interior, even where 1t is
Of small proportions.
Money has continued easy in Wall street
Notwithstanding last weeks heavy inroads
on surplus reserves. The money market
has not had any gold exports 10 reckon
with this week. Opinion differs as to
whether the export movement has ended
evidently has control OF the London mar
ket and could make an advance in it's rate
effective on the money market. but The
continental demand on London for gold has
relaxed and Berlin has been a free lender
in London A continuance of this latter
condition would preclude the Xix elihood of
further gold exports from here.
Some importance is attached to the de-
cision to apply the loan tax of the war
revenue law to call loans on stock opera
lions on margin. The frequent shifting of
these loans and Of the collateral and the
payment of the tax separately on each
transaction would make the cost of such
loans prohibitory and would cut off the
largest part of the activity in the stock
market. Some of the later selling of stocks
is attributed to this cause. The increased
number of railroads reporting decreases In
gross earnings compared with last year for
the first week in February has not been
without effect on the market. These de-
creases are attributed TO the great falling
off in the grain movement. General con-
ditions of business are reported encourag-
ing and the demand for all grades of iron
and steel products is phenomenal. The
general undertone of the market has i'm
consequence shown firmness in spite of
speculative profit taking.
There has been a broad and active de-
mand for bonds, which has tended to bring
prices of many of the newer and lower
grade issues toward the price level of the
high-grade investment mortgages. United
states tours advanced Il per cent. from
the closing call of last week.
Following are Saturdays share sales and
the recorded price changes: