The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-03-15

A PERIOD OF DRASTIC LIQUIDATION
AND ERRATIC CHANGES.
Monetary Conditions the Dominant
Influence i'm the Market-Price
Movements and Their Causes.

NEW YORK, March 1.-THE market
waited for the appearance of the bank
statement to-day to show any clearly de-
fined sentiment. Traders on the floor bid
up prices smartly Immediately after the
appearance of the statement on the tape,
but no response was received from any
outside quarter, and the market closed dull
and easy. with the monetary demand ex-
hausted. 1t was only by reducing loans to
the extent OF over sl5O0O.O00 and Iessening
the legal reserve requirement in proportion
that the banks were able to prevent a
deep inroad on the legal reserve. That
item shows a surplus of barely a million
still maintained. The statement conformed
pretty closely to expectations, as the ces-
sation OF calling of loans by the banks in
the latter part OF the week indicated that
the losses of reserves had been made good
by loan contraction. There was another
deposit Of 100000 at the subtreasury this
morning for transfer to New Orleans. The
weeks imports OF merchandise at New
York were valued at Sl5,003054, an increase
over the previous week of Ss,S1s.S74. which
shows the continued heavy requirements
for customs payments. To-day's large SUBJ
treasury debit at the clearing house was
due to payment of an old Connecticut
claim. These are not hopeful symptoms of
next weeks influences on the banking re-
serves. The disbursement on Monday OF
the s20.000000 Standard Oil dividend is Of
better augury. but there has been opportu-
nifty 10 anticipate this benefit. which isn't
likely TO have been neglected. "A drop of
ia In Consolidated Gas and OF in Brook
lyn Union Gas was due to the recommended
ton for municipal street-hghting plant
for New York. Metropolitan Street-railway
scored a sharp recovery on the official offer
to submit its books for inspection in con-
nection with charges OF irregular account
ing:
The market has been feverish and unset
tied in tone during the whole of this week
The fluctuations were wide and varying
but the price level settled down toward the
end OF the week 10 near last weeks closing
lever ana became difficult TO move, while
the volume OF dealings shrank 10 sm.tl
proportions. The covering operations OF a
large bear element played an important
part In this net result. as there was large
and important liquidation affected and
number or unfavorable factors to contend
with as well. The practical wipinC OUT OF
the surplus reserves OF the banks by last
orders into the market as a matter OF
course. but the demand from shorts WAS
very large; and Monday saw an actual re-
attracted large offerings from outside
sources. There was violent break I'm for
eign exchange rates, and foreign banking
houses were large lenders In New York,
while New York exchange at Chicago
Jumped TO par, aud Western banks placed
funds in Wall street. The effect has been
an equaiizing OF the money pressure. the
relief In New York being offset by the
Tightening or money rates at interior points
I'm this country and In the foreign money
markets under the influence OF New York 3