The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-12-30
CALL MONEY RATE HIGHER
EFFECT OF ADVANCE FELT IN STOCK
MARKET-TRADING SLOW.
Temporary Pinch I'm Money Market,
from Huge January Disburse-
ments Seen-New Bond Issues.

NEW YORK Dec. 29.-The rise in call money
rates to a per cent. maximum to-day marked
the unmistakable effect of the preparation for
the annual settlements, and made itself felt IN
the stock speculation. An effort made 10
retrieve the reaction in the late dealings by some
very vigorous advances in the United States
Steel stocks and in Southern and Union Pacific.
but the general list did not respond effectually
to this treatment, and prices fell back again.
making the closing weak and active. The days
net changes show some fair gains in the active
list and some striking gains in the inactive spec
alty list. but the highest prices of the day were
not held in any case, and the gains were wiped
out in conspicuous stocks.
The furry in the money market had
more effect in suspending the buying
and the bidding-up process than in induc-
ing any extensive liquidation. The feverish
and excited tone of the cotton market probably
reflected also a process OF clearing up for the
year-end settlements. 1t has scarcely been ex-
,ected that the year would be turned with no
perceptible pinch in the money market. especially
since the revelation of the heavy loan expansion
last week. The fact that the requirements for
January disbursements call certainly for $4,000
600. and up to an estimated maximum Of $780,
900. point the inevitableness of temporary
pinch while this huge is changing hands.
1t was well understood that while the sums &C
cumulated in preparation for these needs were
lying deposit and idle they were put out on
call until they were wanted with the clear
prospect that loans would be called in very large
volume about the first Of the year. But the mar
ket has advanced in face OF these sureties IN
the conviction that the furry in money would
certainly be brief, and that the resources in hand
would quickly return to the channels Of the mon
ey market. The action of prices to-day brought
some reconsideration to the speculative mind
as is invariably the case with reversal of a
market movement without regard TO news de-
velopments. Some renewed skepticism asserted
itself as to the character Of some of the recent
price movements. The window dressing pur-
poses for which the higher prices designed
to serve in balance sheets and the suspicion that
market in preparation for some heavy offerings
of bonds appealed with fresh force when
difficulty in holding prices detected.
The new bond offerings of the week are accom-
panied by rumors of still other offerings to come
after Jan. ]. Rumors were revived OF Rock
Island refunding. Westinghouse Electric re-
lapsed suddenly the announcement of note
issues TO the extent of g. 600 900 to provide partly
for railroad purchase and the deposit of Chi
cago Alton preferred stock with authority to
sell offered another prospect of new security
issues. The New York Central requirements for
terminal changes come up easily for considera-
ment of gold hither is still uninterrupted, small
engagement having been effected in London to-
day. while San Francisco RENTED to New Or
leans over million of gold received from Asia.
Bonds were active and Arm. Total sales at
par value, 81 995, 900. United States old
fours coupon, advanced Il, and the new fours,
registered, declined per cent. on call.