The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-05-16
MONEY GROWING TIGHTER
GOLD EXPORTS ARE REDUCING SUR
Plus AND RESERVES.
Weakness of steel Last Week
Strengthens Opinion that Big Pco-
pie I'm Steel Bear the Market
special to the indianapolis Journal.

NEW YORK May 15.-This is year OF
recorder king in the financial world. The
spring just craving to a close has seen
the breaking OF all previous records IN the
expansions OF loans and the piling up OF
reserves and surplus by the New York
banks And now another record has been
broken-the gold exporting record. With
the shipments to go out on Tuesdays
steamer-.omething like $1,000, 00O-the ex-
ports OF gold from the port OF New YORK
since April will amount 10 nearly $4soo,-
. 90. Never before has such ar enormous
amount OF gold been sent TO Europe In this
space OF time.
very tangible effect upon the monetary con-
ditions here. and il is probable that further
effects VIII be seen the coming week ana
during the weeks following Money rates
are tightening up. The bank statement yes
terday showed large decreases in the re-
serve, the required reserve and the surplus
items. This shrinkage Is due almost alto
gether. II: is thought. to the exports or gold
The effects of these decreases no doubt
will be felt in further stiffening Of money
rates.
The financial district has already begun
to speculate upon what condition the New
York banks will be in next fall 10 lend their
usual assistance TO the West in moving Its
crops. Many millions of dollars are shipped
west from New York each fall TO be used
In moving the corn and wheat crops, ana
with surblUses shrinking at the rate they
have the past few weeks financiers are be-
ginning TO wonder whether New York VIII
be ready 10 send west all the money the
West will ask for to move its crops Ihere
IS no doubt any longer that money rates
have been lower the first four months or
this year than they will be the remainder
of the year And perhaps by next ran
money will be worth "A good deal more than
IL is now. Perhaps rates Will be back at
level where 1t will no longer be problem
with the banks to keep their idle money
employed on a profitable basis.
The extreme weakness of United States
Steel. especially the common, last week.
and the character of the selins-or rather
the supposed character of the selling-tend
to strengthen the opinion that the big peo-
pie on the inside in the steel and iron Dus-
mess take advantage of their information
about conditions in the trade-which IN
formation they have, OF course. In advance
of the public-to sell or buy the market
Ii has been the general opinion In Wall
street for a long time that the big people
In the United Sattes Steel Corporation were
on the short side of United States Steel
all the latter part OF the last year, bearing
the stock the information they had of
the decline in the iron and steel business.
The action of United States Steel last week
strengthens this opinion.
Mr.. G.. Watts Bagley, of Wall-street
commission firm. has the following to say
about the stock market:
II think prices will go still lower. Many
OF the neutrality-suspicious. stocks are no
doubt held as collateral for loans, in which
the borrowers equity has no doubt been
wiped out. To market these holdings would
show a great loss and would tend TO de-
moralize the market still more. The mar
ket is sale on all rallies, as any advance
is fictitious and for unloading purposes
only. The speculative public has de-
serted the stock market. and is now
and cotton. There Is no doubt that
cotton is well held and is good property
and unless there is fully 20 per cent
increase i'm the new crop II will probably sc
higher. The manufacturers are bas1ne
their prices for fall orders on present mar
ket prices. They have small stocks and
can afford to pay from p to 40 per cent
more and not feel it. as the price of cotton
is the smallest. part of the cost of produc-
ton except In the very cheapest goods. The
South Is very much alive and will not sub
South can borrow enough money on the
growing crop to tide them over for year
IL necessary"
The record of sales Of stocks on the New
York Stock Exchange shows. to some ex-
tent. how little the public is in the market
Thus far this year total sales of stocks
aggregate about A, 100000 shares. During
the corresponding period last year total
sales amounted to a little more than 60.0O0.-
600 shares. Here is discrepancy OF
100000 shares in favor OF last year. 1t is
common talk. and has been all year, that
the public Is not in the market TO any ex-
tent. But here are figures which show the
facts clearly. The financial district is set
Ting down to the opinion that the stock
market will be a narrow affair until after
the election. at least The public doesn,
1t showed some increase over the previous
week-did not represent very much trading
for account of the public The greater
proportion OF IL was by professional oper-
ators and big people who are in the market
more or less all the time