The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-11-22
Bank Statement In
strumentaI I'm the Decline of the
Early Part of the Day.
GENERAL COURSE Is UPWARD
STATE OF THE EXCHANGE MARKET
FAVORABLE TO STOCKS.
Completion of United States Steel Con-
version Plan Also HelpfuI-BOnd
Market More Active.

NEW YORK. Nov. N.-Tradfng in stocks was
of very desultory character to-day and the net
results in the way Of price changes were not
important The ruling tone was one of depres-
sion but the market made a considerable re-
covery and closed firm. The publication of as
sertions that the passing of the dividend on
United States Steel common stock and the re-
duction of that the preferred stock had been
determined induced renewed selling of the
United States Steel securities. forcing the pre-
ferred stock more than point lower and the
second bonds nearly point. Both rallied in the
late recovery CT the market.
The bank statement was another discouraging
factor. The loan contraction amounted to $3.50
72O. The deposit account was further contracted
by shrinkagc of cash reserves of S.. 747,500, so
that while the reserve requirement was reduced
to the extent of $3.50, AS, the surplus suffered
TO the extent of s2,227.075, bringing it down to
s3.911. $50. A year ago there surplus of
s1s.429.975 and two years ago Of sii.4S.s25. The
course OF the money market makes little OBJ
scure the recovery in foreign exchange 1t Is
evident, however, that the accumulation of ex-
change has in view the requirement for the pay
ment of $40. 100000 to the Panama Canal Com
pany In connection with the settlement of the
canal question 1t is to be noted, also, that
the value of imports of dry goods and merchAn-
disc at New York this week has risen 81, 500, 900
grain for the week neaerly 100000 blu less
than last week.
Prices of stocks have turned upward this
week, In spite of some unsettlement at times.
Transactions have been largely in professional
hands and for the most part devoted to cover
| ing of short contracts put out on the previous
decline.
| The most effective influence in turning the
market the realization of the very favorable
position of the international exchange situation.
induced by the publication of the foreign trade
| statement for October With the exception of
| October of 1900 this statement shows an
excess value Of exports over imports
| greater than in any previous month of the
country's history The value of cotton
| exports in October to slS O00 900 over those for
October last year accounted for this. Enormous
exports OF cotton have continued up to the pres
ent time. foreign consumers being influenced by
the fear of another in cotton in this coun-
try. At the present high price of cotton it is
! evident that the marketing of the present crop
will create a vast total of credits to be liqui-
dated for us by foreigners. The declining course
| OF our imports and the prospect of expanding
iron and steel exports are additional factors to
| exchange market. The heavy requirements thus
thrown on foreign financial houses have admon-
ished the financial world that delicate and con;
| to avoid an upset Of foreign money markets
which might affect unfav' ably the best markets
! for our products. Inc sum OF over SSOO00J0 In
/ gold which has been taken from London for New
York is not to be supposed to represent the salts
/ faction or the trade balance in favor The
| residue is accommodating to our credit in foreign
money markets The purchase In New York by
process of lending by New York to foreigners
I in effect. Competent authorities estimate thai
| eigners is less than for many years past in CON
/ trast to the high level of such indebtedness al
/ si00.o00,O 600 within two years past
On the industrial side attention has been cen
tered on the iron and steel trade and the affairs
from the trade show continued uncertainty as &c
customers taking hold at the price reductions
cline in prices is likely to extend. The red ue
ton In export steel freight rates accorded by the
port trade. is regarded as concrete evidence e q
poor prospects for domestic trade and a lower
TO secure foreign trade The effect is looked 70,
| in railroad earnings. which. while holding above
those for corresponding periods Of last year
chow a progressive decline in the ratio of in
crease For the first six months of the year in
average rate of nearly /. per cent For Angus
| the rate of increase fell to per cent. for Sep
over per cent. The rate of increase thus ia,
| in November for a smaller number of roads re-
nsd T sass sel Sss been also
the discontinuance of the process OF conversion
or the preferred stock into second mortgag,
bonds. The course OF the preferred stock ha,
been downward during the conversion process
| syndicate for the purpose of conversion. TIL,
disfavor felt toward the creation of a securit,
ahead or the preferred stock. with the exclusive
privilege OF conversion in the syndicate, coupled
with the unsatisfactory conditions i'm the trade
| steadily overbore the demand for absorption b,
| the syndicate. Therefore the preferred. and, II
fact. all the securities Of the corporation ralie,
| sharply on the announcement of the cessation O
| the conversion.
| The better prospects in the money market hav
| beer in favor OF the bond market. but the pros
| pect of large additions to the list of rairoa,
| bonds has been deterrent influence of buyers
| United states twos declined q and the three
and the old and new fours u below the CLOSING
| call of last week.
Following are Saturdays share sales and tn
recorded price changes: