The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-05-22
SECURITIES MORE ACTIVE
THE LAST HOUR OF WEEKS TRAD
ING WAS THE MOST ANIMATED.
Saturdays Advances Decided Weeks
Averages in Prices on the Side of
Gains-Reviexy of Week.

NEW YORK, May 21.-The last hour of
the weeks trading in stocks proved to be
the most animated and strongest of the
whole week. The days moderate gains
were sufficient tor decide the average for the
weeks movement on the side of gains.
The bank statement proved an agreeable
surprise and impelled the lively buying
movement, which lifted prices smartly. The
movement was sudden and had not spread
far in the list when the end of the ses-
sion put end to it.
The closing was strong and at the top
level, and the rather spasmodic movements
in one or two stocks indicated some distress
on the part of the surprised shorts An
inkling of the heavy reduction in the loan
item got abroad before the bank state
ment was issued and started the buying
movement.
The process involves borrowing in Lon
don to meet the sterling bills when they
mature there. 1t is evident. therefore. that
the export of gold is not longer profitable
as simple exchange operation, and the
early termination of the outward movement
of gold is believed to be thus forthcoming.
The limitation of the cash decrease Of the
banks to s7.OS59oo in the week of the record
exports of $l5.500,0 600 in gold is convincing
evidence of the effective offsetting factors
to that drain which are in operation.
The net result is to leave the surplus
serves of the banks unimpaired. Total sales
of bonds, par value S9S0,O0O The listless
drift of prices of stocks is the index of the
formless state of speculative sentiment
over the outlook for values
REVIEW OF THE WEEK.
Very few stocks have moved point away
from last weeks closing level either way,
and the dealings have fallen TO volume
not exceeding the average market of the
days before the great multiplication of
issues now listed on the Stock Exchange.
The uncertainties of the future cloud the
judgment and paralyze activity in dealing
in securities. Decreasing trade activity,
declining railroad earnings, the impaired
prospects for the wheat crop, the languid
course of the iron and steel trade and
the conservatism normal to presidential
election year are all elements in the halt.
The unprecedented outflow of gold also
is prime factor in the hesitation of the
markets, although no decisive effect has
yet been produced In the money market,
through which the results from the
pletion OF gold reserves would first OPP
crate. The outflow Of gold may in fact, be
abundantly accounted for by special causes,
primarily the Panama canal payment and
american subscriptions to the Japanese and
1t is now freely conceded that the pro-
ceeds of these subscriptions were to be re-
mitted In full TO London. These three
items would call for about SSOOOOOcO in
the exchange market. At the same time
severe declines in the value of exports of
grain and cotton for several months reduced
the available supply of commercial eX-
change, throwing the remitters back on the
necessity Of exporting gold
SUPPLY OF GOLD WAS LARGE.
Our supply of gold was really redundant
at the time. Japan had made payments for
war material and supplies from this coun-
try by direct shipment of gold to San Fran
cisto. and by reason of this inflow and
the supply of the domestic Klondike produc-
tion of gold, It is estimated that the total
supply of gold in the country has been un-
| impaired, in spite of the food of gold ex-
| ported from New York
The declining demand for currency has
| Deen another factor towards tightening the
| erect OF the gold exports. Currency has
flowed in constant stream towards the
| reserve centers and has been Offset each
| week TO the decreases in reserves of the
New York banks by reason of the gold out
| flow.
1t seems probable. therefore, that the net
! results OF the gold export movement will
prove small. But the magnitude of the op-
| eratfons has necessitated some large re-
adjustments and some unsettlement in the
| process, and to this has been due the dis
| quieting effect of sentiment.
For one thing. the accumulation of gov
eminent reserves with the New York
banks in preparation for the Panama pay.
ment, and the delay in effecting the trans.
fer, produced a somewhat Elusive re-
dundancy of resources. which helped tC
stimulate the huge loan expansion. The de
cision to withdraw the full amount of The
Panama payment from the government de-
posits with the banks causes a rather VIC
lent alteration in this connection.
Meantime the demand for credits by cor
pOratiOnS has not been diminished. and ne
relief is apparent for the loan item of the
banks. 1t is pointed out also that the large
banks has released corresponding
amount of government bonds which wer,
used to secure the deposits and has caused
a fall in their market price.
ISSUANCE OF CIRCULATION STIMU
LATED.
The cheaper price for the bonds widen.
the profits to the banks on bank note is
sues and tends to stimulate the issue o
bank notes in spite of diminished demands
of the circulation. 1t is believed that tn,
injection of additional bank notes into tn,
currency at this time will tend to assist tn,
outward flow of gold
The facility of the outflow and the littl
effect on the money market. although it re
lieves fears of stringency of money, is evi
dence of the sluggish demand for money
and the decline in business activity.
Railroad traffic officials are general!
traffic is not bright before the fall and re
ports have been received of extensive plan
for retrenchment by the railroads to off
set the losses in gross earnings. Report
of railroad earnings as they come 10 han,
fully bear out the opinions expressed o
the declining tendency of earnings and tn
effect has been depressing on railroa,
stocks, especially those whose dividend
seem to have their integrity threatened b,
heavy declines in earnings.
| Advces from the iron and steel trade
indicate a quiet season in that line. Their
are rumors of future projects Of opposition
by former interests thrown out by tn
combination which keeps the undertone un
settled.
The tie-up of the lake carrying industr
by the strike Is unfavorable factor il
business and the traffic thus diverted Z
the railroads has aroused disputes amOngs
them over rates that evidence of tn
week has failed 10 afford any support TO
stocks
The bond market has been almost equall
dull and sluggish with stocks. Unite
States twos and threes coupon, and the oil
tours have declined I. per cent. ca
during the week.
Saturdays sales and the range:
High Low Clio:
RAILROADS Sales. est est. Bic
( Atchison ................. 100 64A 6SA ca
AtchiSon pfc. .......---.-. 90 - - y
Baltimore & Ohio lsoo 7Sz IS IS
Baltimore * Ohio pfd.... 100 904 90A so
Canadian Pacific 300 ll1S III III
! Central of New jersey. ISL
Chesapeake & Ohio 100 30 30 30
Chicago * Alton 2UO 3fS4 3t4 81
Chicago x Alton pfd..- -; -. -. 20