The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-02-09
WEEK in WALL STREET
INCREASED SPECULATIVE ACTIVITY,
WITH HIGHER PRICES.
Operations, However, Are still Large
ly ProfessionaI-Conti Ease Of
Money Market Helps Trading.

NEW YORK, Feb. THE animated
strength of the Wabash securities in the
market to-day contested for a 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 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 S4.OO,Wo
by reason Of this adjustment. The loan ex-
tension is still left at a large figure and 1t
is believed that some Of the effect or the
s35 900 Pennsylvania loan is thrown over
from last week. The $7,2s4.SO0 decline In
cash reserves is more than twice as much
as was indicated by the known movements
Of money. The 100000 payment to the
subtreasury on account of the Central Pa
cific 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 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 are 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 312 per cent. bonds into
stock. There has been large activity in the
coalers and the present large earnings of
those companies a result of the condi-
tons growing out of the anthracite strike
are not believed to fully account for the
is still 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 ii. I'm
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
agreement have not been learned, but II
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 as 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 it's 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 ave been cleared up by
| 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 as to the benefits Of this plan ir
| itself. there is no difference in the connec
| ton that the tying up of the financia
| measures looking TO its adoption which re-
suited from the litigation has been &
| 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 o.
plans in which the great masses of securi
| ties are involved and 1t is believed vas
| sums of capital are to some extent tiet
| up. 1t is the conviction in Wall street tina
long time past has been due in no small
| part to the suspended condition in which
| these great projects have been held, as wei
as others of an analogous kind, which ar
awaiting a determination of the lega
standing Of the companies involved in liti
cation.
A feature of the week has been the &C
| tivity and strength of some of the meta
| stocks. led by the copper group. owing t
the rising course of the metal and confiden
trade predictions for the coming year. Com
panies concerned with the silver and lea,
trade have also received attention through
the demand for their shares in the market
The underlying cause of the awakene
speculation is undoubtedly the increasing
supply of funds availing for speculative
purposes, due to the seasonable refiux O
funds to the reserve centers. The Ney
York clearing house authorities have takel
this favorable opportunity to advanc
| measures for the requirement that trus
companies which use the clearing hous
facilities shall enlarge their cash reserv
holdings. The growth in number of tn
trust companies and the expansion of thei
deposit banking business has called In
creasing attention to the question of tn
adequacy of their cash reserves, whic
amount on the average to less than pc
cent of their deposits. The trust com
panies are to be required to increase tn
percentage of their reserves to per cent
by June next and ultimately to a 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 I
make itself felt, is a problem of great i'm
portance to the financial world.
There has been some broadening tendenc
in the bond market during the week, bu
the price movement has been Irregular
United States fives declined Il and tn
threes. coupon, g. The new threes. regular
advanced Il, as compared with the clos
| last week.
Following are Saturdays share sales an
the recorded price changes:
High Low Closin
| RAILROADS Sales. est. est. Ri,
Atcbison ................. 100 S7s s7& 81
Atchison pref .....-...-.... 900 100& 100Is 100
| baltimore Ohio........... 2.700 101+ 1O1A l0l
| Baltimore & Ohio pref. 100 s6A 96L Sc