The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-09-05
Condition of the Money Market Is
Much Better, Although Crop Move
ment VIII Tax Resources.
GOLD is TO BE IMPORTED
FINANCIERs EXPECT A CONSIDER
ABLE AMOUNT WILL BE NEEDED.
Corn Crop Conditions Tend to Keep
Speculation UnsettIed-Enect of the
Government Cotton Report.

NEW YORK, Sept. 4-To-day's stock
market was again excessively dull but dis
tinctly strong. The three days which will
intervene before trading will be resumed
prompted the closing up of speculative ac-
counts, and the fact that tomorrow is also
a holiday in London emphasized this dis
position. 1t is evident that the majority
Of outstanding accounts was on the short
side. There was no other obvious reason
for the strength Of the market, as the
bulls were as chary on the eve of the long
holiday as were the bears.
Atchison was the feature of the market,
both as to volume of dealings and width of
movement. its extreme advance of 2s easily
distancing all other stocks. There were
some very heavy bear accounts covered on
the advance, which helped the upward
movement and gave ground for the suppo-
sitfon that they were the object of the
movement. But the extent of the move
ment gave rise to some surmises of an
accumulation on a large scale, possibly for
purposes of control. Rock Island interests
were pointed TO, and there seemed to be an
effort to convey the impression that Penn
s~ylvania and Hartman interests were OPP
posing or competing with this
ton.
The Atchison movement had some SYM
pathetic effect Oh the general list, but the
| largest response was COnfned 10 the SOUTH
ern and corn and cotton car
Ilers. The movement may have been in
part a reflection OF the government report
on cotton, which had eontinued influence
corn market did not reflect any excess of
confidence in that crop, and the reports OF
frost in the Northwest gave rise to some
fears that the cold would extend into the
corn belt. But the news of the condition of
that crop in the lower portions of the belt
conduced 10 a growth of confidence in the
60 ~ of rhnE ortiz ~ ~ A-n. o.1 40
may have been an influence in the strength
of Southwestern railroad stocks.
SHAW'S TALK I'VE HOPE.
The tone OF the recently reported utter
ances of the secretary of the treasury on
the general business and financial outlook
had an encouraging effect, and his advocacy
of an emergency circulation fosters the
hopes of the financial district for such a
measure. But the emphasis by the secre-
tary in his published statement ON the de-
posits being made of government money in
the agricultural districts had somewhat the
effect of an admonition against speculative
uses of these funds.
The forecasts of the currency movement
of the week indicate a slight Improvement
in favor OF the interior, which, with the
weeks losses to the subtreasury, show a
probable decrease i'm reserve held by the
banks of IS $500, 900. There have been some
shipments TO the South i'm connection with
the cotton crop moving, but the movement
on DdldnCe WOulu nave Deen In favor or New
York had it not been for the large special
movement TO Boston, which seems to have
amounted to over $1,000. 0O0. and is attributed
to a New York interest in copper affairs.
The complexion of the loan item is shrouded
in the usual doubt. The closing was steady
and very dull.
Bonds were dull and very firm, and gov
eminent bonds continued to advance. Total
sales, par value, $755,000.
MARKET IS PROFESSIONAL.
The stock market has backed and filled
during the week on a small volume of deal
ings, rejecting clearly enough the highly
professional character of the market and
the waiting attitude of the financial world
in general on the securities market outlook.
The fate of the crops and the needs of the
money market between now and the end
of the year are the principal matters to be
cleared up before any definite stand on the
future prospects of securities is to be eX-
pected by stock market commitments. The
feeling of confidence over the money outlook
has gained force daily. This is due, in an
important degree, to the understanding that
$40, 600, 900 of government funds in the treas
ury stand ready for deposit in bank depos-
itories. The inspiring effect of this assur-
ance encouraged some attempt to put up
prices of stocks by the element of profess
sional SPECTATORS. But the banks and large
controlling interests in the great properties
whose shares make up the body of stock
dealings appear to have frowned upon these
efforts as calculated to defeat the conditions
OF security WHICH Il STO~llk up III II
money market. The relaxation of the money
market was felt to be very important for
the conservation of business activity and
prosperity. Conditions even for mercantile
borrowing had grown Onerous, thus threat
ening the extension of the depression and
contraction which had swept over Wall
street.
TONE IS OPTIMISTIC.
The hope has grown up that with the
large liquidation effected in the stock mar
ket and nv avoiding renewed SpeculatiVe
initiation, the usual extra needs of the fall
season for money may be met without de-
priyation of the mercantile needs for cred.
it's. The premonitory symptoms of the
interior movement of currency have ap-
peared this week, and it Is clear that the
practical test of the country's money re-
sources is at hand. Trading in stocks will
be likely to halt until the test is met.
The government report on cotton clears UP
one of the important elements of uncer-
tainty and is accepted as assurance of a
plentiful crop. The situation is benefited
not only by this assurance but by its in
fuence in prompting the large liquidation
of present speculative holdings of cotton,
the promise of relief for the consumptiye
demands of manufacturers and the en-,
couragement to bankers to offer bills OF
exchange with assurance of a free move
ment of cotton later with which to cover
the obligations thus assumed.
DEMAND FOR FOREIGN MONEY.
The American demand upon foreign
money markets for exchange is beginning
to loom large in the opinion of these mar.
kets. The advance in the Bank of England
minimum rate of discount from 3 to 4 pei
cent. on Thursday was directed Immediately
against Germany, which is making very
heavy acquisitions upon the English golC
supply at this time. But Germany's call
ing home of credits is indirectly intended
for the American money market. This was
clearly set forth in official utterances OF
behalf of the Imperial German Bank sew.
eral weeks ago in the form of a complain
that German money was freely loaned
TO foreigners to aid an industrial competi
ton against Germany. The recall of Ger
man credits thus may be regarded al
prompted by policy rather than by the
normal money needs OF German markets
and is made effective In London by reason
of the large amount of German capita
which has been employed there ever sine,
the rise in interest rates due TO the Boel
expenditures. ~ rise in foreign interes
rates will check borrowing in foreign mar
kets for American account, but il will no
eyade the movement OF gold required Il
liquidate the trade balance in our favor
when the export movement of merchan
disc sets I'm, unless ii should be by foreign
borrowing in our money market or by off
setting sales OF our securities in this mar
ket. Foreign markets were never so bar,
of our securities as at present.
OLD TO BE IMPORTED.
There Is a well-defined conviction that
considerable import OF gold will he mad,