The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-05-30
STOCKS WILL BE Dull
THEREIs NOTHING TO INDICATE ANY
RENEWED ACTIVITY.
Hey IT, the Money Market VIII BE
Found in the Foreign Exchange Sit
rsation-Gcncral Outlook.



NETWORK. May 29.-There was nothing
IN the situation at the end of the week just
closed TO indicate that the stock market
will bee any more active this week than
it has been for some time During the
week eSading May - the financial situa-
tion Underwent some changes which. it
was thbught. might stimulate activity in
the securities market.
But a.iy hope for more actievity in stocks
engendSred by the reduction in the loans
by the New York banks and the practical
cessation OF the expectation of sold failed
OF naturalization, and the market during
the week just closed was almost as dull
as during the week in March. when sales
ran dom under $4,000 shares one day.
This ieek there is absolutely nothing to
encours3 BE prediction that the stock
market will show any renewed activity.
Rather developments of the past week, as
shown by the bank statement, would seem
to point to continued dulness.
Perhaps the most unfavorable item of
the baSk statement, so far as the stock
market.is concerned, was the enormous in
crease sn the cash holdings of the New
York banks. But what is the use of DWELL
ing up.n unfavorable things? The stock
market is dull and is likely to remain so
Tor some time. That's about all there is
to say.
- 4
The key to the money market viii prob
ably be, found in the foreign exchange mar
ket for some time 10 come. The gold en-
ports RI presented extraordinary remittances
on account of the Panama canal. Russian
and Japanese loans. The amound of gold
which vent to Paris in settlement of cur
rent liabilities of the United States was
small There are other remittances to be
made ara If Paris needed gold it
would be sent But the Bank OF France.
with the gold already received from New
York and that which is due TO sarrive
within day or two. has greater gold
reserve than ever before. The monetary
situation in Paris. therefore, is in danger
OF the same plethora that was caused here
by the concentration in New York banks
of the United States deposits withdrawn
from tsle interior banks for the Panama
payment
The sveekly treasury reports of national
bank circulation have shown steady in
creases since the first call for the return
OF United States deposits took effect on
March 80 The indications are that all of
the United States bonds that were deposited
as security for United States deposits called
In will be used 10 take out circulation to an
amount equal TO the withdrawn United
States deposits. The practical effect of this
policy Will be to substitute bank notes for
the greater part OF the gold that has been
sent 10 Paris. Bank notes cannot be paid
out ovt.r the counter currency. and
they ms9y be sent TO Washington for re-
denptiOn in lawful money
The caSiness of the money market since
and during the gold exports may he
ascribed in great part TO the expansion in
bank circulation The increase in the cir
cuIation OF the New York banks was small
--only Sl.i662o0 from April IS To May H.
but the increase In circulation by interior
banks enabled them TO send more cur
rency To their New York correspondents
In this way, and through the receipts OF
gold from. Japan. il Was made possible for
the bank statement OF May q 10 show a
loss Of only S6951 600 since April 2. although
In the meantime over S57.oo0.0o0 gold had
been Exported The cash holdings were
tzs50s7. on April 2. 1901. and s2ss. 500 on
May 21-y
The strength OF the foreign exchange
market is the natural sequence of the ease
In the money market II has been an
nouncec by j. l.. Morgan a Co that the
last Pauama payment has been made and
that there viii be no more gold exports or
that account. The exchange market vii
hencefe nth be subject only to the influences
normal 10 this season OF the year. Whils
money remains easy there will be nc
finance bills sold. and those who have &c
make zemistances must bid for bills high