The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-11-23

GENERAL COURSE Is UPWARD
STATE OF THE EXCHANGE MARKET
FAVORABLE TO STOCKS.

NEW 1OKh, NOV. Zl.-lraQlng 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
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 on the preferred stock had been
determined on induced renewed selling of the
United States Steel securities. forcing the pre-
ferred stock more than point lower and the
second bonds nearly a point Both rallied in the
late recovery Ct the market.
The bank statement was another discouragng
factor. The loan contraction amounted to $2.62O.-
TO The deposit account was further contracted
by shrinkagc of cash reserves of $3,747,5OO, so
that while the reserve requirement was reduced
to the of ST. $40, 425. the surplus suffered
TO the extent of ST. 2270 75 bringing it down to
s391l,350 A year ago there surplus OF
sls, 1885 and two years of sl4,4S6,s20. 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 $iO.000,c00 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 ST. SOC. 000
grain for the week neaerly 100000 bu less
than last week.
Prices of stocks have turned upward this
week. in spite of unsettement at times.
Transactions have been largely in professional
hands and for the most part devoted TO cover
ing OF short contracts put out the previous
decline.
The most effective influence in turning the
market was 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
| greater than in any previous month of the
country's history the rise IN value OF cotton
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
viii create vast total of credits to be liqui-
dated for us by foreigners. The declining course
iron and steel exports are additional factors to
be reckoned with in estimating the future of the
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 unfavorably the best markets
gold which has been taken from London for New
YORK Is rot TO be supposed to represent the salts
/ faction OF the trade balance In our favor The
| residue is accommodating to credit in foreign
money markets. The purchase in New York by
process of lending by New York to foreigners
| In effect Competent authorities estimate that
egners is less than for many years past in con.
| trast to the high level OF such Indebtedness al
| 500. oOO; 900 within two years past
| On the industrial side attention has been cen
tered on the iron and steel trade and the affairs
| of the United states Steel Corporation. Advices
| from the trade show continued uncertainty t.
customers taking hold at the price reduction.
| already effected and an expectation that the de
| cline in prices Is likely to extend. The reduc
tion in export steel freight rates accorded by tn,
railroads while promising 10 facilitate the ex
| port trade. is regarded as concrete evidence OF
| poor prospects for domestic trade and a lowe,
| level OF prices at which business must be done
TO secure foreign trade. The effect is looked fol
| In railroad earnings which, while holding above
| those for corresponding periods of last year
chow progressive decline in the ratio of in
crease. For the first six months of the year in
creases IN railroad gross earnings were ar
| average rate OF nearly IL cent For Augus
TENDER to per cent. and for October to a littl.
over per cent. The rate Of increase thus fai
in November for smaller number Of roads re
United States Steel has been affected also b,
| of the preferred stock into second mortgag,
bonds. The course OF the preferred stock ha.
in spite Of the demand for accumulation By th
syndicate for the purpose of conversion. Tn,
ahead of the preferred stock. with the exclusiv,
| privilege OF conversion In the syndicate, coupled
with the S conditions IN the trade
the syndicate. Therefore the preferred. and IL
fact. all the securities Of the corporation rallied
| sharply on the announcement OF the cessation o
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 raiiroa,
bonds has been deterrent influence Of buyers
and the old and new fours 4 below the closin,
call of last week.
Following are Saturdays share sales and thu
recorded price changes.