The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-02-08
WEEK IN WALL STREET
INCREASED SPECULATIVE ACTIVITY
WITH HIGHER PRICES.
Operations, However, Are Still Large
ly observation-disclosures Ease of
Money Market Helps Trading.

NEW YORK, Feb THE animated
strength of the Wabash securities in the
market to-day contested for prevailing
influence with the very poor showing made
by the banks. The influence of the bank
statement was lessened by the ease with
which loans can now be obtained. 1t is
well understood also that the statement
was complicated by the change in the
capital account of the Western National
Bank, due to merger operations. 1t is esti-
mated that the loan account was over
stated to the extent of more than St.OOO.oOO
by reason of this adjustment. The loan ex-
tension is still left at large figure and it
is believed that some of the effect OF the
S35, 000, 900 Pennsylvania loan is thrown over
from last week. The s7,2s4. 500 decline in
cash reserves is more tran twice much
as was indicated by the known movements
of money. The s3.O00,O00 payment to the
subtreasury on account of the Central Pa
cihc note was made last Saturday and did
not figure for full week in the averages.
The decline which followed the issue of the
statement developed so large a demand
from the short sellers Of yesterday that an
effective rally followed and the market
closed active and firm.
The week has seen some new develop
ments of interest in the financial world,
and the stock market has not been entirely
without response. Prices generally
higher and there has been an expanding
volume of business in securities. 1t is sus-
pected, however, that operations in stocks
are still very largely professional, although
the leadership of the market has been
palpably more vigorous, and organized on
wider lines with larger resources employed.
1t is noticeable also that the stocks most
directly affected by the actual news de-
velopments of the week have not shared
equally in the market and in some cases
have been subjected TO pressure in spite
of news developments in their favor. This
was notably true of the Rock Island stocks.
There has been pretty constant selling, too,
of Pennsylvania, following the rather I'M
expected announcement of the putting for
ward by a year of the privilege of con-
version of the 315 per cent. bonds into
stock. There has been large activity in the
coalers and the present large earnings OF
tons growing out of the anthracite strike
are not believed to fully account for the
large transactions The Wall-street public
Is stlll In expectation OF steps TO be taken
which will cause a change in the status
of the Erie. No definite light has been
thrown on this subject, but rumor and con-
| lecture have continued busy with it. Inn
portance is attached to the news of an ar
| rangement between Rock Island on the one
hand and Union Pacific and Southern Pa
| cific on the other. The exact terms of the
is generally assumed that Rock Island is
assured of an outlet for its traffic to the
| Gulf of Mexico on the one hand and the
| Pacific coast on the other. while it is be-
| lieved that any projects which might have
been contemplated for the extension of in
dependent lines to secure these outlets are
| thus abandoned.
There is some question to the effect of
this arrangement on the interests Of other
systems. especially on the Gould's South
| westerns. While the question of this syS-
| tenn for Western connections Is thus
| brought into view, the permission granted
to the Wabash by the Pitsburg authorities
| for its entrance into that city clears up a
| problem that has been an obstacle to its
! Eastward progress. Another long-standing
cause Of speculative hesitation and repres-
| sion is believed to have been cleared up by
| the decision Of the New Jersey court of
| last resort in favor of the right OF the
| United States Corporation to issue bonds
for the retirement of part of its preferred
stock. While there is some difference of
| opinion to the benefits of this plan in
| itself, there is no difference in the connec-
ton that the tying up of the financial
measures looking to its adoption which re-
suited from the litigation has been a
detriment to the securities of the corpora
ton. The effect of the decision on the
stock market therefore has been favorable.
The clearing up of the status of the North
| ern Securities Company by judicial de-
| cision, which is still in litigation, is awaited
| to free from obstruction the progress of
plans in which the great masses of securi-
ties are involved and it is believed vast
| sums of capital to some extent tied
up. 1t is the conviction in Wall street that
the lethargy of the securities market for a
long time past has been due in no small
part to the suspended condition in which
| these great projects have been held, as well
| as others of an analogous kind, which are
awaiting a determination of the legal
standing Of the companies involved In liti-
CATION.
A feature of the week has been the ac-
tivity and strength of some of the metal
stocks. led by the copper group, owing to
the rising course of the metal and confident
trade predictions for the coming year. Com
panies concerned with the silver and lead
trade have also received attention through
the demand for their shares in the market
The underlying cause of the awakened
speculation is undoubtedly the increasing
supply of funds availing for speculative
purposes, due to the seasonable refux OF
funds to the reserve centers. The New
York clearing house authorities have taker
this favorable opportunity to advance
measures for the requirement that trust
companies which use the clearing house
facilities shall enlarge their cash reserve
holdings. The growth In number Of the
trust companies and the expansion of theil
deposit banking business has called in
creasing attention to the question of the
adequacy of their cash reserves, which
amount on the average to less than pei
cent of their deposits. The trust com
panies are to be required to increase the
percentage of their reserves to per cent
by June next and ultimately to minimum
of 10 per cent. in June of 1904. The effec
on the money markets, when the fall de-
mand for credits and currency begins tt
make itself felt, is a problem of great i'm
portance to the financial world.
There has been some broadening tendency
| in the bond market during the week, bu
the price movement has been Irregular
United States fives declined n and tn,
threes coupon, q. The new threes, regular
advanced 4. as compared with the clos'
last week.
Following are Saturdays share sales ant
the recorded price changes:
High Low CLOSING
, | RAILROADS Sales. est est. Bid
Atchson ................... 200 S7A S7% SIS
| Atchison pref .............. 800 100% 1e01z 1907
Baltimore Ohio. 2,700 10lA 101x 1015
| Baltimore & Ohio pref. 100 96A 96A 961
4