The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-08-31
WEEK in WALL STREET
SIX DAYS OF SMALL TRADE AND
INERTIA Of PRICES.
Money Market Conditions Are the
Dominant Factor i'm Stocks-Other
Influences Are Ignored.

NEW YORK, Aug. 29.-No significance
can be attached to to-day's small dealings
I'm stocks by a handful of professional
traders. Very few prominent stocks COW
cred an extreme range Of as much as
point and the market fiuctuated uncertain
ly in the interval. There were a few adj
vances at the opening, which may have
been due to the contradiction of the first
reports that the United States vice con-
cul at Beirut had been murdered No out
side response came to this movement and
the traders sold the market off on an early
impression that the bank statement would
not be as good as the forecasts indicated.
AS a consequence, the poor bank statement
was followed by a hardening in the mar
ket due to covering by early short sellers
and the market closed firm, but practically
lifeless and at level slightly higher than
last night. The banks show an Increase
in cash of only sl.2O5,1O0 where a gain of
upward of s2,000.OOo was expected and the
loan account was again expanded to the
extent of upward of 100000. This loan in
crease is in reality e measure Of the in
activity of the money market as 1t is sup
posed to be due to the putting out at un-
remunerative call loan rates by the banks
of funds deposited by the trust companies
to take advantage OF the rate paid by the
banks on deposits. Besides this. senti-
ment on the money market outlook has
taken a tone of assurance since the
announcement of the secretary of the treas
urys plan to increase government deposits
with the banks to the extent of $40,0O0OO0
IL necessary. The stock market has come
practically to a standstill this week and
toward the latter part Of the week the
daily aggregate dealings have fallen to
lower figure than on any full days trad
ing since the summer of 1900. This is In
some part due to the interest among men,
bers of the exchange being diverted to the
yacht races and to the large number of
belated vacations among the members. The
usual summer outings have been prevented
hitherto by the troubled state of the stock
market and more than once there has been
hasty recall TO the street to face crisis.
With the completion of the long process of
liquidation and the closing up of the re-
sulting speculative accounts on the short
side the market has come to a state OF
stable equilibrium and is felt to the de-
vices of set of small traders on the floor.
Daily fluctuations, which reach as much
as point in only few stocks, represent
and the profits they reap or the losses they
suffer are at each others expense.
Pending the outcome Of the fall demands
on the money market a quiet condition or
the stock market is essential to the bust
ness world in general. In the last week
of August last year the drain on New York
bank reserves had already set I'm and by
the middle of September they had fallen
below the legal requirement, so that the
banks had to report deficit of upwards
of a million dollars, I'm spite of sudden
and drastic loan contraction. The pre-
cedent of last years severe experience has
been constantly in mind this year. and has
sentative course, which is beginning to
form the basis for hopefulness that the
coming demands will be comfortably met.
The usual talk Is heard in some quarters
that the Western banking institutions are
so well fortified that the needs for the cur
rency to move the crops may be met out
of their own deposits without calling on
Eastern banks. 1t is pointed out that some
Western banks, even in the heart of the
wheat belt, are now lending money at
camille paper here than the New York
banks themselves. But experience shows
that whether resources of Western banks
are loaned here directly by the local
banks which have them on deposit, the
result of the fall demand for cash is the
same. When loans here by Western banks
are recalled condition demands for credits
are thrown on the local banks and the net
results are the same If the Western
banks were to withdraw their deposits from
X.
cotton crops is expected to cause possible
delay in the interior demand, but its pro-
portions are generally expected to equal
former years. In other respects conditions
year. Then credits were inflated to sustain
prices OF securities at an unstable height
opee envy were empoyed for the
purpose and foreign creditors began to call
home their loans in the very crisis
of the fall needs for money. Now the
hoe
liquidation and the foreign borrowings of
our capitalists have been reduced to an
enormous extent. There is no fear Of any
obstacle to an inward flow Of gold as soon
as the outward movement of crops begins
to make exchange. During the past week
exchange bills have made their appear
coming supply from the crop movement
and foreign banking houses have also been
lenders Of money on time to an important
extent in this market The firm tone of the
time money market and the high rates
paid on prime mercantile paper are suf-
ficient evidence that money is not in abund-
ant supply and that care and conservatism
Is exercised In lending It, But confidence
is expressed among bankers that legftima tie
requirements for trade and commerce may
be met without trouble. Meanwhile capt.
form. as indicated by the failure of the
bond subscription plan Of the Consolidated
Lake Superior Company. Reports are nu-
corporations to obtain temporary loans
There is residue of apprehension lest a
pinch in the money market should un-
cover weak spots due to overextension of
credits in the country at large This feel
ing prompts the halt i'm the stock market
pending the outcome of the fall money re-
quirements.
The market has ignored other develop
ments of whatever character. Favorable
railroad earnings, including Erie's strong
annual report. large current railroad traffic
a decidedly more cheerful tone in the iron
and steel trade, favorable crop news, a rise
in silver and copper and some foreign de-
mand for stocks the one hand and the
threatened embodiment over the supposed
murder of the United States vice consul i'm
Turkey on the other hand have been equal
ly without effect
Bonds have shared I'm the dullness and
sluggishness of the stock market United
States twos and old fours advanced ~ per
cent and the new fours registered declined
II per cent. as compared with the closing
call of last week.
Following are Saturdays share sales and
the recorded price changes:
High Low Clos
RAILROADS Sales est est Bid.
Atchison ................... lS25 "a 62S 635s
AtChisOn preI--.--..-..-- 3,JVJ sV12 Syas q01s
Baltimore * Ohio LOO S3L S22. 81
Baltimore & Ohio pref. -. -. SCI.