The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-06
STOCKS SHOW net LOSSES
INCREASE IN RAILROAD EARNINGS
FOURTH WEEK OF FEBRUARY.
Deadlock in the Securities Market
Not Relieved Any This Week
Northern Securities Case.

Northern Securities decision on MONDAY anu
lost most Of the small gains which had been
established by the slow and laborious harden
ing movement of the whole of the week up to
to-day.
The market closed easy to-day, at declines
running to a point in a number of the prolni-
nent stocks The volume of liquidation, how
ever, was unimportant and indicated nothing
more than traders positions in the market But
the impelng motive clear enough and was
corroborated by the weakness of Northern Sc
curities itself the curb.
The bank statement was without any IN
nuence The increase in cash was slightly less
than expected. but the fact that there was an
increase at all is evidence of the continued
tendency toward congestion of reserves. The
loan expansion was viewed with equanamity
in view OF the condition of reserves. notwith-
standing that the loan item establishes new
high record again, with an aggregate for the
clearinghouse banks within $4,000 of round
$1,000 100000
This is supposed to reflect renewed cor
poration borrowings including the s0,0oO'OOO taken
by the New York Central and the same amount
by the Burlington. The fact that the latter was
placed in Chicago would not prevent its re-
Election in the New York showing.
Railroads reporting gross earnings for the
fourth week in February show some increases
over the similar period of last year, but the
additional day in February of this year, which
figures in the showing. distorts the comparison.
Foreign influences were against the market to-
day London being confronted with mining set
tlerent next week, after just emerging from the
strain of the Paris settlement this week.
Consols. as consequence. touched new low
record in London to-day. for the movement.
Total sales of bonds, par value $4,000.
REVIEW OF THE WEEK.
The deadlock the securities market has
been unrelieved this week. Notwithstanding the
passing Of some Of the influences which have
been the assigned causes for the persistent
apathy in the market.
Buyers and sellers desist from activity and
the result is an almost motionless market. which
is the despair of the trading element and
also Of the brokerage element. which looks to
commissions for its business profits.
The market is hard and free from pressure.
but the maintenance of prices fails to invite any
absorption Of stocks. The behavior of individual
stocks under occasional attempt to liquidate
a small amount occasioned dread that the
frmness is partly illusory.
This is especially the obscure stocks
which are only traded in at long intervals. In
stances are cited in the stock and bond divisions
where nominal quotation is maintained for
weeks by P bid for stock with no offerings,
but where the offerings S Of small block or the
the occasion for the immediate lowering of
the bid by many points. If the stock is to be
sold, il must be done at a wide concession from
the nominal quotation, which has been SEEM
ngly held with great hrmness through many
depressing factors in the general condition
MARKET EASILY ADVANCED.
On the other hand, it is found in contrasting
cases that attempt 10 buy in comparatively
small quantities of given issue will necessitate
the bidding up of the nominal quotation several
! points before the desired offerings are found in
the market In the one case. in the other.
as the active transaction is concluded the
price quickly returns to the nominal level. The
rate Of stock market activity has dropped to a
i level low that prevailing in the summer
/ the early part of 1897.
! In making the comparison allowance must be
made also for .he enormous additions made in
that time to the Stock Exchange list by reason
of the heavy issue of securities Of industrial
notable in view of the accumulation of re-
serves in banks and the nominal rates at which
ployed in the speculative movements in the COM
/ modify markets without causing a ripple on
the stagnant surface of the stock market The
money outlook is not without its obscurity. never
cause Of the lethargy in stocks
The continuing hlgh rate for time loans paid
is an indication that resources are being con-
served by the banks for expected demands OF
The fixing of the date for the withdrawal OF
! government deposits with national banks 10 pro-
vide for the Panama canal payment serves to
have clouded the money market and to estab-
lish confidence in the ability of the market 10
meet the situation without disturbance
OUTGO OF GOLD COMMENCED.
The dispropUtionate ease in the call loan mar
ket is partly explained by the policy of the rail-
road corporations in keeping the proceeds of note
issues deposit with the great banks for use
in the call loan market pending their active EN-.
pIoyment.
The outgo of gold to South America, which has
London is able to call on New York for assist
ance in meeting its obligati lions for foodstufs IL
ly large volume by reason of the artificial price:
forced by speculation in our own products.
| The question OF future money rates abroad or
| account OF the war requirements and the re
| hected effect upon our own market remains fol
the future to determine. The shrinkage in do
| drawn to decrease in business activity is an
other factor in the current ease of money. which
| deprives that fact of its power for reinsurance
! 10 speculative sentiment.
| The heavy fall in net earnings Of railroads
| reporting for January gives additional force L
the consideration of the business outlook Again
ing of the winter obstruction to traffic is modi
fed in its force by the ascerbity of the rat,
gone on during the week side by side with III,
taking of steps for the arbitration settlement
the uncertainties for the market to consider
CONTINENTAL INFLUENCES.
The Paris stock market settlement has over
hung all the worlds markets throughout tn
week and its adjustment cannot but serve t
eliminate one of the repressive influences.
Large purchases of pig iron by the United
States Steel Corporation have met a broad init
nation from the leading trade review that TIL
purchase to be designed as tonic Il
other departments of the market rather than e
supply actual needs of the corporation
The threat of a soft coal strike has its par
in holding in check the stock market and ;
| growing influence from this time on must b.
all ONypd tvbe
which is conspicuous by the lack of moisture Il
parts of the Southwest
Finally il is not expected that any develop
ment will effectually release the stock marke
from its constraint until the Northern Secur
tiles decision is handed down.
The bond market has shared the apathy an
suggishness Of the stock market. United State
..,.l L.