The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-11-01
Stock Market Observers Were in q
Qunndary as to the Immedi-
ate Future.
STOCK PRICES REPREsSED
STILL A HEALTHY TONE AND UN-
BOUNDED CONFIDENCE.
No Urgent Liquidation, However, Has
Been in Evidence-GOld I'm.
ports Probablc.

NEW YORK Oct 31.-The bank statement to-
day proved to be the usual enigma to stock
market observers. The statement reports de-
crease in cash of SIS. e7i,so0. There number
OF estimates complied every Friday of the
weeks currency from tho bank officials them
selves Yesterday of these estimates re-
garded as reliable showed cash outgo for the
week of less than sl5.OOO.oco. and some of them
ran to over s15.O0O.eoo.
Last Saturday the bank statement in its item
of cash reserves failed to show the estimated
decrease by si.OOO.Oo0. Under the workings OF
the average system last weeks discrepancy
would tend TO be corrected in this weeks state
ment. The conclusion Is unavoidable that the
actual showing OF the cash reserves item in the
bank statement. IL 1t correctly represents the
actual conditions OF the banks, must be based
upon money movements not disclosed to the
public in the information upon which the Friday
estimates based. To-day's statement failed
to have convincing effect in stock market circles,
and a very languid upward movement of prices
resulted. This was partly due to the fact that
a skeptical feeling was felt az to whether the
formidable decrease in cash would be in fact re-
fected in to-days bank statement. There is a
belief that the discrepancies in the bank state
ment may be explained by cash operations be-
tween the banks and trust companies, which do
not appear in the reports of currency move
ments. The increase in loans. which reached
$i 409, 500, was not unexpected, and is attributed
IL preparations for Nov 1 settlements, and TO
borrowings by Western institutions in connec-
ton with their large cash withdrawals. The
closing steady but very dull, and with the
advancing tendency checked.
MONEY MARKET TIGHT
The tightening money market this week has
had repressive Influence on the stock market
and has had effect also in checking the
broadening tendency of the bond market which
had begun to reach notable proportions. Fol-
lowing the bank and trust company failures at
Baltimore and Pittsburg last week came the
news OF st. Louis trust companies by
some classes OF their depositors. and the en-
forcement of sixty days notice of withdrawal al
lowed to the trust companies. This condition
led TO large Withdrawals of currency from New
York 10 reinforce the position at st. Louis
At the same time the heavy shipments TO New
Orleans for crop-moving purposes have con-
rinued. and the Iong-delayed demand from the
West Tor moving the grain crops has set in
Wednesday the transfer of currency out of New
York through the subtreasury reached the I'M
precedented total OF 81 900. OF which S. 900
ST. Louis. which also the highest
record for single days shipments to any one
point. The weeks outgo also exceeds all rec
ords. The emergency shipments 10 st. Louis
are believed 10 be temporary need, although
markets may keep the money there over the
crop-moying period. The development OF the
regular Western crop-moving requirement has
demonstrated that the season needs for that
purpose must be met from New York. as usual
ana has disprovet the expectation that Western
resources would be sufficient TO meet the re-
ourements, which had been maintained in some
quarters.
WESTERN RESERVES LACKING.
The indulgence of that expectation last fall
proved costly a large speculative interest in
the stock market, and the memory Of last falls
experiences begets a spirit OF caution. The
spirit Of distrust o. banking institutions re-
vealed by the st. Louis episode has induced a
conservatism in the banking world in general
and disposition TO conserve reserves. The eff
feet of these factors has been a rise in the local
rate for money call and time. But the
further effect has been a precipitate break in
the rates for foreign exchange to near the gold
import point. which has spread the pressure of
the situation into foreign money markets. For
eigners have been heavy buyers OF cotton during
the week, impressed with the fear OF the forma-
ton OF another corner in cotton market
The outgo Of wheat and corn also has expanded
demand for exchange to cover previous sales
which has hitherto steadily absorbed the supply
the market. AS the current demand for gold on
the continent is keen, the final outcome of the
seems clear that the New York money market
has secured control of the exchange situation
with power to secure relief by gold imports at
need.
Meantime operations in stocks have shrunk to
few special movements, due to causes affecting
Individual stocks. The quarrel among the cop
per interests in Montana has been the basis for
United States Steel has been somewhat affected
by the information disclosed in the application
lar listed department at the STOCK ExehansEe
The iron and steel stocks and the railroad
unimproved conditions in that trade. and sp Sy
officially by the large decrease in net earnings
for the past quarter reported by the Pressed
Steel Car Company Railroad officials have come
to admit. for the nrst time. some declining
ported again in the field. after a long period of
inactivity. Mercantile agencies also report a cau-
disinclination 10 order ahead. There has not
resulted any marked depression in the stock
No urgent liquidation has been in evidence and
the opinion is held that the long liquidation in
present and possibly future conditions during
the time when complaint was made that Wall
The hope that the necessary liquidation in the
stock market is over has checked operations for
a further decline.
NO INVESTMENT DEMAND
There is no plain evidence that any invest
ment demand for stocks has yet developed Sorae
complaint is heard OF the manipulative char
scter OF occasional advances in prices. But
this. If true. does not detract from their EVIL
dence OF improved speculative sentiment and
OF the cessation OF pressure TO liquidate which
defeated all manipulative efforts to advance
prices for long time Many high-grade mac
tive stocks were sold down under forced liqulda-
ton in small lots to prices which offered no
indications OF the value set upon them by in
vestors, at the figure of which investors were
willing to part with them unless forced to do so
by need OF funds in hand. Some OF. the COR
respondingly wide recoveries in such stocks are
hardly evidence OF a renewed absorption for in
yestmeit, but may represent process OF bidding
up by market managers who. unopposed by OF
fers to sell. for the purpose Of rectifyng market
quotations and improving the acceptability of
securities collateral.
The rise in money rates has halted the invest
ment absorption Of bonds. but has caused little
reaction in prices. Bona houses report a good
inquiry and expectation that the falling off in
business activity viii lead TO some accumulation
OF idle capital within short time, and de-
mand for safe investment in mortgage securities
The purchase of some s25.e)0.0C0 of bonds of
subsidiary companies Of the Pennsylvania Conn
rany by bankers the event OF. the week in
the bond market and regarded as evidence OF
the revived market for bonds. United States
twos advanced Il and the threes and old fours ~
per cent. over the closing call OF last week "
SATURDAYS QUOTATIONS.
Following Saturdays share sales and the
recorded price changes: