The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-03-02
WEEK IN WALL STREET
ALL MOVEMENTS DOMINATED By
THE MONETARY SITUATION.
Price Changes Have Been Generally
TO a Lower Level-Rally on Satur-
day, Following Bank Statement.

NEW YORK, Feb. 2S.-Stocks were sold
with great freedom during the first hour of
to-day's short session and rebought with
eagerness after the appearance of the bank
statement. The uncovered bear interest
was plainly a factor in the buying, and its
efforts to get stocks were felt even during
the selling of the first hour. Commission
houses also reported some buying attracted
by the considerable decline of the week.
New York Central suffered drive prompt
ed by the reports of the extensive land
slides along it's tracks: Pennsylvania, on
the other hand, offered good resistance
Traders are inclined to shift holdings from
New York Central to Pennsylvania at the
same price level, on the ground of the
higher dividend rate The Pennsylvania
annual report also helped the stock, and
the rumors of possible control of Wabash
continue to have some speculative infiu-
ence. The traders followed the st. Paul
movement. both downwards and upwards.
in the belief that they were in strong finan-
cial company. Amalgamated also resisted
the decline and made a good rally. The
decrease of cash in the banks showing
of $685. 600, compared with preliminary es-
Inmates based on statements by the banks
themselves of from 100000 to over $780,
600. caused the rally. 1t is believed that
the late movement OF the large consign-
ments lessened their effects on the weeks
averages, which would throw their effect
over to next weeks statement. The merely
nominal loan decrease was the notable sur
prise of the statement, and finds no plau-
sible explanation. The subtreasury had
Il nf half
the clearing house this morning The mar
ket closed somewhat unsettled.
The dominant factor in this weeks stock
market evidently has been the money mar
ket- The immediate development has been
/ the hardening tendency of time money and
| the conviction has become more settled
! that scant money supply and conservative
| action by the banks in according credits
| are likely to be in order for an indefinite
period. An example of the Importance at
| tached to the question was the sensitive
| ness or speculative sentiment 10 the discus
sion of the Aldrich financial bill in the
Senate Lively recollections held of
/ the added difficulties of the money crisis
] last fall by reason of the withdrawal from
the circulation, by collection, of the gov
ernments surplus. and the narrow re-
| sources left to the secretary of the treasury
| for returning the government funds to the
channel of the market. The added facil-
tiles for doing this provided by the Aldrich
measure are looked to with earnest hope
In financial circles to guard the money
| market against one dread source of en-
barrassment Evidence accumulates daily
| of the large needs ahead of the money
| market not only in the very active en-
ployment In circulation by reason of the
nigh level of business activity, but in the
OF the business world. Last weeks de-
| mands on New York for currency from
New Orleans were supplemented by large
| transfers this week to Chicago, which came
somewhat Unexpectedly. This demand was
attributed to the maturity of obligations
on March of secondary payments on some
| West last year. Interior banks are avail
ing themselves of all opportunities to draw
on their New York correspondents for per-
| formance of financial transactions with a.
| view TO conserve their own resources for
| the needs OF the interior money market
Great activity continues in all lines of
| trade and the speculation in cotton and
corn add to the demands for money
The outgo of $4,000 i'm gold to Buenos
Ayres and the lowering of the foreign ex-
change rate near the gold export point is a
| reminder that foreign creditors have claims
| on this money center, which can only be
delayed by an advance I'm the interest rate
| winch offers an attraction for leaving for
| eign money to loan here In this DEPART
ment there is the contingency also of the
payment of 100000 to the Panama canal
| shareholders and to Colombia. Another
factor in the situation is the obligation
! upon New York trust companies to accumu-
late cash reserve of something like $20-
the new rule of the New York clearing
house. 1t is calculated that the locking up
of this sum will reduce the credit facilities
by four times the amount, it will be
withdrawn from bank reserves, where it
figures as one-quarter of the banks de-
posits 1t is believed that last weeks heavy
| cash decrease in the bank statement was
due to some preliminary action TO this end
by the trust companies. Many of these
factors in the money situation have been
in view for some time, but the rise in
money rates this week and the heavy in
roads bank reserves bring them home
to the minds of operators in securities, so
that they undoubtedly form the underlying
influence in the persistent impression of
speculative activity
The almost total lack of response in the
stock market to the disclosure of the far
| reaching Rock Isand-St. Louis & San
Francisco project is a striking illustration
of this indifference in strong contrast to
the electrifying effect on the market of for
| mer great railroad consultations. Account
| also must be taken of the effect of dimin-
ished gross earnings for the railroads in
| the third week of February, due to the OBJ
struction of traffic by the great storm. In
| creases are, however, shown over the cor
| responding week of last year, but in much
| less ratio than for the first two weeks OF
| February. Returns of net earnings fol
| January are still too few for conclusive
judgment, but those which have been is
| sued fail to confirm the hope that the rise
| of freight rates in January would effectual-
| ly relieve the encroachments on net earn.
| ings by reason of larger operating expenses
which were evident in recent months.
| The movement of prices in the bond mar
| ket has been more irregular than in stocks
but the activity in that department com
| pared with last year is relatively much les:
| than that i'm stocks. United States threes
| coupon advanced Il per cent as compared
| with the closing call of last week.
| Following are Saturdays share sales anC
| the recorded price changes:
High Low Closin,