The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-08-30
WEEK in WALL STREET
SIX DAYS OF SMALL TRADE AND
INERTIA OF PRICES.
Money Market Conditions Are the
Dominant Factor i'm StOcks-Other
Influences Are Ignored.

NEW YORK Aug. 29.-No significance
can be attached to to-day's small dealings
I'm stocks by handful of professional
| traders. Very few prominent stocks COW
cred extreme range of as much as a
| point and the market fiuctuated uncertain
ly in the interval. There were a few adj
| vances at the opening, which may have
| been due to the contradiction of the first
reports that the United States vice con-
| cul at Beirut had been murdered No out
| side response came to this movement and
| the traders sold the market off on an early
| impression that the bank statement would
not be as good as the forecasts indicated.
/ AS a consequence, the poor bank statement
/ was followed by a hardening in the mar
ket due to covering by early short sellers
and the market closed firm. but practically
lifeless and at a level slightly higher than
! last night. The banks show an increase
in cash of only 81 pos, 100. where gain of
| upward of s2,0O00O0 was expected and the
| loan account was again expanded to the
extent of upward of S., 600, 900. This loan in
crease is in reality a measure of the in
activity of the money market, it is sup
posed to be due to the putting out at UNI
remunerative call loan rates by the banks
of funds deposited by the trust companies
to take advantage of the rate paid by the
banks deposits. Besides this, sent-
ment on the money market outlook has
taken on a tone of assurance since the
| announcement of the secretary of the treas
ury's plan to increase government deposits
| with the banks to the extent of $i0,000,000
if necessary. The stock market has come
practically to standstill this week and
toward the latter part Of the week the
daily aggregate dealings have fallen to
lower figure than on any full days trad
ing since the summer of 1900. This is in
some part due to the interest among men,
bers of the exchange being diverted to the
yacht races and to the large number Of
belated vacations among the members. The
| usual summer outings have been prevented
hitherto by the troubled state of the stock
market and more than once there has been
h b te tne Of e TO Of
liquidation and the closing UP OF the re-
| sulting speculative accounts on the snort
| side, the market has come to a state or
stable equilibrium and is felt to the de-
vices of set of small traders on the floor.
| Daily fluctuations, which reach as mucn
as point in only a few stocks. represent
and the profits they reap or the losses they
suffer are at each others expense.
| PenQlng the outcome Oh TIE OeIuduoS
on the money market quiet condition OF
the stock market is essential to the bust
ness world in general. In the last week
sss AND
the middle Of September they had fallen
below the legal requirement, so that the
of a million dollars. In spite of q sudden
and drastic loan contraction. The pre-
cedent of last years severe experience mas
been constantly In mind this year, and has
"A
servative course, which is beginning to
form the basis for hopefulness that the
coming demands will be comfortably met.
The usual talk is heard I'm some quarters
that the Western banking institutions are
so we'll fortified that the needs for the cur
of their own deposits without calling on
Eastern banks. 1t is pointed out that some
Western banks, even I'm the heart OF the
this center and are freer buyers OF mer-
camille paper here than the New YORK
banks themselves. But experience shows
that whether resources of Western banks
are loaned here directly or by the local
banks, which have them on deposit, the
result of the fall demand for cash is the
same When loans here by Western banks
are recalled condition demands for credits
thrown on the local banks and the net
results are the same as IL the western
banks were to withdraw their deposits from
New York. The lateness of the corn and
cotton crops is expected to cause possible
delay in the interior demand, but its pro-
portions are generally expected to equal
former years. In other respects conditions
are materially altered from those OF last
| year Then credits were inflated to sustain
prices of securities at an unstable height
Not only domestic resources, but enormous
purpose and foreign creditors began to call
home their loans in the very crisis
of the fall needs for money: Now the
stock market has gone through drastic
liquidation and the foreign borrowings OF
| our capitalists have been reduced to an
enormous extent There Is no fear of any
! lx~~ Af errnlA
| as the outward movement of crops begins
to make exchange. During the past week
exchange bills have made their appear
ance in the market In anticipation for the
coming supply from the crop movement
} and foreign banking houses have also been
lenders Of money on time to an important
extent In this market. The firm tone of the
time money market and the high rates
paid on prime mercantile paper are suf-
ficient evidence that money is not in abund-
| ant supply and that care and conservatism
, is exercised in lending it. But confidence
! is expressed among bankers that legitimate
requirements for trade and commerce may
be met without trouble. Meanwhile CAPT.
tai holds aloof of commitments to fixed
| form, indicated by the failure of the
bond subscription plan of the Consolidated
Lake Superior Company. Reports are nu-
merous of efforts by various Industrial
corporations to obtain temporary loans.
There is residue of apprehension lest
cover weak spots due to overextension of
credits IN the country at large. This feel
ing prompts the halt in the stock market
pending the outcome of the fall money re-
quirements
The market has ignored other develop
| ments of whatever character. Favorable
railroad earnings. including Erie's strong
annual report. large current railroad traffic,
a decidedly more cheerful tone in the iron
and steel trade favorable crop news, a rise
in silver and copper and some foreign de-
mand for stocks on the one hand and the
threatened embodiment over the supposed
murder of the United States vice consul in
Turkey on the other hand have been equal
| ~ without effect.
Bonds have shared in the dulness and
suggishness of the stock market. United
States twos and old tours advanced "a per
| cent. and the new tours registered declined
, 4. per cent. as compared with the CLOSING