The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-03-16

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


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 s15.OoO,0Oo and lessening
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 SIS, 003, 054. an increase
over the previous week of $3,S1S,S74, which
shows the continued heavy requirements
for customs payments. To-day's large sub
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 $20,000.000 Standard Oil dividend is of
better augury, but there has been opportu-
nifty to anticipate this benefit, which isn't
likely to have been neglected. A drop of
ga In Consolidated Gas and of in Brook
Ign Union Gas was due to the recommended
ton for a municipal street-lighting 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 or irregular account
ing:
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 to near last weeks closing
level and became difficult TO move, while
the volume of dealings shrank to small
proportions. The covering operations of
large bear element played an important
part In this net result as there was large
number of unfavorable factors to contend
with as well. The practical wiping out of
the surplus reserves of the banks s 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-
covery. The stringency of the market here
attracted large offerings from outside
sources. There was a violent break in for
eign exchange rates, and foreign banking
houses We're large lenders in New York,
while New York exchange at Chicago
jumped to par, and Western banks placed
funds in Wall street. The effect has been
aee in New q York be GmS bS
Tightening Of money rates al interior points
I'm this country and in the foreign money
markets under the influence of New York S
requirements. The drop In British consols
to the lowest point in years was attributed
to this money pressure in part, but the
| coming reduction in their interest rate from
~ to ~ was an additional factor.
| attracted by the higher interest rate there
has been no betterment of the money situ-
alton here The subtreasury has continued
| to withdraw funds largely from the New
York money market. While the money
scare was in force a report got abroad
that the Treasury Department would draw
on government deposits with the banks tn
meet the Panama canal payment. The
presence in Wall street of the secretary
of the treasury had a reassuring effect in
Its evidence of his special watchfulness
of the situation, although his decision was
| against the necessity of any measures by
| the department to relieve the money mar
ket. 1t is recognized that some withdrawal
or government deposits with the banks may
| be necessary by the Panama canal pay
ments unless the treasury itself is in
| abundant funds at the, time, and any re-
lease Of funds at this time will hamper
| the treasury in carrying through the oper-
alton without disturbance. So far as these
payments are made by drafts on funds in
| the treasury itself 1t is clear that they
| will operate to release funds rather than
| to withdraw them. AS to the effect of this
| operation on foreign exchange there is the
| hope that its proceeds will be. available
| for lending here, although this would be
in effect for the account Of the foreign re-
| cipients Of the payment. 1t Is generally
supposed that some part of the recent
| heavy Withdrawals of cash from the New
| York banks is being made by the New York
| trust companies to replenish their reserves
| in compliance with the new rule of the
| clearing house.
| speculation was the contest regarding the
| financial policy for Southern Pacific be-
tween the Hartman or Union Pacific con-
| troll In that company and a minority in
terest represented by the holdings of a
speculative pool under the management
OF James r. Keene. The various develop
ments in this contest have been accom-
panied by violent price movements and
| enormous speculative dealings in both
| Southern Pacific and Union Pacific with
important sympathetic effect on the whole
market. Published charges OF irregular
accounting, although met by emphatic Off
| cial denials. had a weakening effect upon
metropolitan street hallway The dissen-
| sion among stockholders of American Ice
| and the slump in the companys stocks was
another disturbing influence. feature
| or the present market is the wide declines
made from previous prices by high-priced
| inactive stocks which are forced to market
| by the money stringency. Amalgamated
| Copper has been a subject of furious spec
| ulation, based the excited advance in
| the price of copper both here and in London
| The uniformly favorable representations
| of Industrial and business conditions from
all quarters, while the market for securities
remains persistently neglected, and some
| what depressed makes a subject for much
| puzzled conjecture on the part of disap-
| pointed SPECTATORS. The favorite formula
| to express their conclusions is too much
| prosperity"
The bond market has moved in sympathy
with stocks. United States old tours, the
| fives and the threes registered advanced "A
| per cent, and threes. coupon. and new
Tours y per cent The twos, registered,
| declined "A per cent, as compared with the
| closing call of last week.
The following are Saturdays share sales
and the recorded price changes:
High Low Closing
RAILROADS Sales. est. est. bid.
Atchison ................... AZ, 100 S2h S1& S2Ls