The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-11-02
CONTINUED A PUZZLE
SATURDAYS BANK STATEMENT
SHED LITTLE LIGHT ON SITUATION.
stock Market Observers Were I'm a
Quandary as t. the Immedi-
ate Future.
STOCK PRICES REPRESSED
PRICES REPREssED
STILL A HEALTHY TONE n UN-
BOUNDED CONFIDENCE.
No Urgent However, Hai
Been in Evidence-GOld I'm.
ports Probable.
NEW YORK. oct. a1.-The bank statement to.

NEW YORK, Oct. 31.-The bank statement to-
day proved to be the usual enigma to stock
market observers. The statement reports a de-
crease in cash Of ss.e74. 500. There are a number
of estimates compiled every Friday Of the
weeks currency from the bank officials them
selves. Yesterday none of these estimates re-
garded as reliable showed a cash outgo for the
week Of less than SIS. DOC. coo, and some OF them
ran to over S15 200. 600.
Last Saturday the bank statement in its item
of cash reserves failed to show the estimated
decrease by $4,000. Oo0. Under the workings OF
the average system last weeks discrepancy
would tend 70 be corrected in this weeks state
men;. The conclusion is unavoidable that the
actual showing of the cash reserves Item in the
bank statement. If it correctly represents the
actual conditions OF the banks, must be based
upon money not disclosed to the
public in the Information upon which the Friday
estimates are 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-
Elected in to-day's 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. Inc increase In loans, winch redcneQ
81, iO9,5 500, was not unexpected, and is attributed
4 preparations for Nov. 1 settlements. and to
ton with their large cash Withdrawals. The
closing was steady but very dull, and with the
advancing tendency checked.
MONEY MARKET TIGHT.
The tightening money market this week has
had a repressive influence on the stock market.
and has had come 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 a run on St. Louis trust companies by
some classes of their depositors. and the en-
forccment of sixty days notice Of withdrawal al
lowed to the trust companies. This condition
led to large Withdrawals of currency from New
York to reinforce the position at st. Louis.
At the same time the heavy shipments to New
Orleans for crop-moving purposes have con-
tinued. and the long demand from the
West for moving the grain crops has set in.
Wednesday the transfer of currency out of New
precedented total of s., $4,000 of which 81, 100, coo
was TO St. Louis. which was also the highest
point. The weeks outgo also exceeds ali rec
ords. The emergency shipments to st. Louis
a she G iScTeaslns 70 ACTIVITY ee te% ~ tse Western Resa: although though
markets may keep the money there over the
regular Western crop-moving requirement has
demonstrated that the seasons needs for that
ANLhs 10 0ohdit
and has ~disprovef the expectation that Western
resources would be sufficient to meet the re-
quirements, winch had been maintained In some
quarters.
WESTERN RESERVES LACKING.
The Indulgence of that expectation last fall
proved costly to 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
to- A.. ..lz- -
and a disposition to conserve reserves. The eff
feet of these factors has been a rise in the local
rate for money on call and on time. But the
the rates for foreign exchange to near the gold
import point. which has spread the pressure of
eigners have been heavy buyers of cotton during
the week. impressed with the fear of the forma-
The outgo of wheat and corn also has expanded.
The rise in local money rates has checked the
demand for exchange to cover previous sales.
which has hitherto steadily absorbed the supply
OF commercial bills as fast as they came into
The market. AS the current demand for gold ON
the continent is keer. the final outcome Of the
exchange situation is not certain, although 1t
has secured control Of the exchange situation.
with power to secure relief by gold imports at
Meantime operations in stocks have shrunk to
a few special movements, due to causes affecting
per interests in Montana has been the basis for
the activity in Amalgamted Copper, and
by the Information disclosed in the application
to place the second-mortgage bonds in the regu-
lar listed department at the stock Exchange;
equipment stocks as q class have been affected by
u min ed con conditions in that trade: and spe-
for the past quarter reported by the Pressed
Steel Car Company. Railroad officials have come
to admit. for the first time. some declining
tendency in traffic. and freight solicitors are re-
ported again in the field. after a long period of
inactivity Mercantile agencies also report q eau
tious attitude en- the part of merchants and a
Discrimination to order ahead. There has not
aSrHlfl N T. danroGcfnn d. ~ -&~-r
market as a consequence of these developments.
No urgent liquidation has been in evidence, and
the stock market has been in anticipation OF
present and possibly. future conditions during
street was the only blue spot in the country.
The hope that the necessary liquidation in the
a further decline.
NO INVESTMENT DEMAND.
There is no plain evidence that any invest
ment demand for stocks has yet developed. Some
complaint Is heard of the manipulative char
acter of occasional advances in prices. But
this. If true. does not detract from their EVIL
dence of an improved speculative sentiment and
Of the cessation Of pressure to liQuidate. which
defeated all MANIPULATING efforts to advance
prices for a long time. Many high-grade mac
tive stocks were sold down under forced liouids-
indications of the value set upon them Snel bv inc me
vestors. or at the figure of which investors were
willing to part with them unless forced to do &C
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.
vestment, but may represent a process of biddins
up by market managers who. unopposed by OF.
fers TO sell, for the purpose OF rectifying marke,
quotations and improving the acceptability OF
securities as collateral.
The rise in money rates has halted the invest
ment absorption OF bonds. but has caused Little
reaction in prices. BOND houses report a good
inquiry and an expectation that the falling off in
business activity viii lead to some accumuIation
OF idle capital within a short time, and a de.
mand for safe Investment in mortgage securities
The purchase OF some SIS. 900, eco of bonds n,
subsidiary companies Of the Pennsylvania Com.
Icny by bankers was the event of the week In
the bond market, and regarded as evidence OF
the revived market for bonds. United states
twos advanced u and the threes and old TOURS u
per cent. over the closing call of last week. "
SATURDAYS QUOTATIONS.
Following are Saturdays share sales and thu
recorded price changes:
- High Low Clos