The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-02-16
WEEK in WALL STREET
MARKED BY AN INCREASE OF IN
SETTLING INFLUENCES,
Accumulated on Saturday by Poor
Bank ement-COntinued Ease
of the Money Market.

NEW YORK, Feb. 15.-An exceedingly
erratic movement in Metropolitan Street
railway confused the speculation in to-
days stock market and discouraged &C
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
opening advance of over a point. This,
and the disquietude over the threatened
enforcement Of the tax on call loan col
laterals, caused some sharp declines in the
market, recessions reaching 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 15sc over last nights last price. Anal
gamated Copper also became very strong
and moved up 2asc. An over-extended short
account was seemingly responsible to
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 point over last night
There was a further jump of points in
Burlington, Cedar Rapids Northern,
making IL points in three days. Union Bag
preferred gained points. The street was
prepared for a further expansion of loans
and was apparently relieved that it was
no larger than 49, 200, but the hope OF
a gain In cash was disappointed and the
decline CT sos 100 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 flrm at
the rally. In the curb market there were
sales OF Metropolitan securities when is
sued at 10, and the bid price was ad-
vanced to 1l6. There were sales OF the sub
scription rights at 6 and at 10.
The upward tendency of prices which was
established last week was carried over into
this week and there was 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
encouragement over the unresponslve 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 bond issue
OF Sl5OOO0,OO0 was a chilling revelation. De-
tails are lacking to the portion of this
issue which it is proposed to float at once
and the purposes to which the proceeds
| 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
| 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 ",
! 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 LA
bility on New York reserves. This gives
| added influence to any suggestion OF finan-
| cial trouble in the interior, even where it 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 to
| whether the export movement has ended
| or is only suspended The Bank of England
| evidently has control of the London mar
| ket and could make an advance in its 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 likelihood 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
tions margin. The frequent shifting of
these loans and of the collateral and the
payment of the tax separately on each
| loans prohibitOTy 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 i'm
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 in
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:
High Low CLOSING
An