The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-03-01
WEEK IN WALL. STREET
ALL MOVEMENTS DOMINATED BY
THE MONETARY SITUATION.
Price Changes Have Been Generally
day, Following Bank Statement.

NEW YORK, Feb. 2S-Stocks were sold
with great freedom during the first hour of
to-day's short session and rebought with
eagerness after the appearance of the bank
statement. The uncovered bear interest
was plainly factor in the buying. and its
efforts to get stocks were felt even during
the selling of the first hour. Commission
houses also reported some buying attracted
by the considerable decline of the week.
New York Central suffered drive prompt
ed by the reports of the extensive land
slides along its tracks. Pennsylvania, on
the other hand, offered good resistance.
Traders are inclined to shift holdings from
New York Central to Pennsylvania at the
same price level, on the ground of the
higher dividend rate. The Pennsylvania
annual report also helped the stock. and
the rumors OF possible control of Wabash
continue to have some speculative infiu-
ence. The traders followed the St. Paul
movement. both downwards and upwards,
in the belief that they were in strong fnan-
cial company. Amalgamated also resisted
the decline and made a good rally. The
decrease of cash in the banks showing
of $4,s43,0oO. compared with preliminary es-
Inmates based on statements by the banks
themselves of from s7.5oo,ooO to over $780,
900, caused the rally. 1t is believed that
the late movement of the large consign-
ments lessened their effects on the weeks
averages, which would throw their effect
over to next weeks statement. The merely
nominal loan decrease was the notable sur
prise of the statement, and finds no plau-
Sible explanation. The SubtreaSury had q
credit balance of over half a million at
the clearing house this morning. The mar
somewhat
The dominant factor in this weeks stock
market evidently has been the money mar
ket- The immediate development has been
the hardening tendency of time money, and
the conviction has become more settled
that a scant money supply and conservative
action by the banks in according credits
are likely to be in order for an indefinite
period. An example of the Importance at
tached TO the question was the sensitive
ness OF speculative sentiment to the discus
sion of the Aldrich financial bill In the
Senate Lively recollections are held of
the added difficulties of the money crisis
last fall by reason of the withdrawal from
the circulation, by collection, of the gov
ernments surplus, and the narrow re-
sources left to the secretary Of the treasury
for returning, the government funds to the
tiles for doing this provided by the Aldrich
measure are looked to with earnest hope
In financial circles to guard the money
market against one dread source of en-
carrassment. Evidence accumulates daily
or the large needs ahead of the money
market, not only in the very active en-
ployment in circulation by reason of the
nigh level OF business activity, but in the
heavy new capital issues in all branches
OF the business world. Last weeks de-
mands on New York for currency from
New Orleans were supplemented by large
transfers this week to Chicago which came
somewhat Unexpectedly. This demand was
attributed to the maturity of obligations
on March or secondary payments on some
OF the large projects entered on in the
| West last year. Interior banks are avail
ing themselves OF all opportunities to draw
| on their New York correspondents for per-
romance OF financial transactions with 6.
| view to conserve their own resources for
! the needs of the interior money market
Great Great act activity continues in all lines of
| corn add to the demands for money
the outgo of s15Ooo0 in gold to Buenos
Ayres and the lowering of the foreign ex-
change rate near the gold export point is a
reminder that foreign creditors have claims
on this money center, which only be
delayed by an advance in the interest rate
which offers an attraction for leaving for
| eign money to loan here. In this depart
ment there is the contingency also of the
payment of $5O.OOO,OOO to the Panama canal
shareholders and to Colombia. Another
| factor in the situation is the obligation
upon New York trust companies to accumu-
late cash reserve of something like $780,
| 100000 in their vaults by June l to meet
/ the new rule of the New York clearing
| house. 1t is calculated that the locking up
! of this sum will reduce the credit facilities
4 i
| withdrawn from bank reserves, where 1t
| figures as one-quarter of the banks de-
| poSitS. 1t is believed that last weeks heavy
cash decrease in the bank statement was
due to some preliminary action to this end
by the trust companies Many of these
| factors in the money situation have been
| in view for some time, but the rise in
money rates this week and the heavy in
roads on bank reserves bring them home
to the minds Of operators In securities, SO
that they undoubtedly form the underlying
| influence in the persistent impression OF
speculative activity.
The almost total lack Of response in the
| stock market to the disclosure of the far
| reaching Rock Island-St- Louis San
| Francisco project Is striking illustration
| of this indifference in strong contrast to
| the electrifying effect on the market OF for
mer great railroad consultations. Account
also must be taken of the effect Of dimin-
| ished gross earnings for the railroads In
| the third week of February, due to the OBJ
| struction of traffic by the great storm. In
| creases are, however, shown over the cor
| responding week of last year, but in much
less ratio than for the first two weeks OF
February. Returns of net earnings fol
January are still too few for conclusive
Judgment, but those which have been Is
sued fail to confirm the hope that the rise
of freight rates in January would effectual
| ly relieve the encroachments on net earn
ings by reason Of larger operating expense:
which were evident in recent months.
The movement of prices in the bond mar
ket has been more irregular than in stocks
but the activity in that department com
| pared with last year is relatively much les:
than that in stocks. United States threes
coupon, advanced 4 per cent, as compared
| with the closing call of last week
| Following are Saturdays snare safes ah'
the recorded price changes:
High Low CLOSING
RAILROADS Sales; est est; BIO
\