The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-04-11
STOCK MARKET OUTLOOK
INFLUENCE OF MERGER SETTLE
MENT SEEMS PRACTICALLY OVER.
Money Is Cheaper In New York Now
than fin Any Other Part of World
-Loans~ Outside New York.
Special 70 the Indianapolis journal.


NEW YORK. April 1o.-From the action OF
some important stocks the latter part OF last
week IL looks now II the influence Of the
settlement of the Northern Securities case is
ceasing TO have much effect upon the stock
market
From the action OF the market last week II
looks also as IL the bull campaign is over and
that the market will left take its own
course, or at least, take its course without the
guiding hand Of the very powerful interests
which have been prominent in the dealings
on the Stock Exchange recently.
From the fact that the market showed much
resisting power to the heavy liquidation Of the
past week II is the general opinion that the
market is pretty strong and that a weak ten
eency Of any consequence is not TO be expected
inasmuch as the big interests seem to be out OF
the market now and that IT is TO be IN charge,
SO to speak. OF the professional. or room, trad
ers. IL is to be expected that there will be some
Iecessions as a result OF profit taking when
prices have been worked up little way. II
Is probable that the trading on the Stock Ex-
change this week can be truthfuy character
Money is cheaper in the city of New York
than In any other part Of the world. and that is
the best explanation OF the engagements OF gold
for shipment Redundancy OF money results
usually in gold exports. Time money in New
fork city for short periods ranges from "a to
per cent, while the bank rates in London.
Paris and Berlin are at per cent. Time money
In Chicago Is 4iz95 per cent. in st. Louis 81
and in New Orleans 7as per cent. Money on
call In New York city may be said to be almost
drug the market the rates 1izG1A per
cent. making the bulk OF such loans by banks
ana trust companies virtually Improbable.
non. The return OF cnrrencT In large amounts
from the West and South. following the move
Ineht OF their crops the accumulation Of govern
anticipation
fahaina canal payment. the reduction in the
volume of trade the inactivity Of investment in
bonds. causing a good deal OF idle money to pile
Up In the banks. and finally the great attractive
institutions on the deposits of out-of-town banks
AL these have contributed to the cheapness of
Another theory is also put forth in Stock FIX
change circles to account for the extremely low
This theory is that big New FORK banks prefer
70 lend their funds at low rates call in order
advance in prices. 50 as to be able 70 make a
market to sell on. This implies degree Of con-
necuon between the management Of hanks frd
STOCK speculation greater even than that which
mas commonly been ALLEGED 10 exist II Is
argued that this theory explains why II is that
during this period OF easy money tho baaSs
and securities Some Of then, have so %
the recent advance.
The reports of the condition Of national banks
on March IS as compared with that of Jan -.
show for other cities increases in loans almost as
great proportionately as in New York
The plethora OF money in other parts Of the
country has produced the results as here.
In fact. there could be oversupply Of money
at New York II the interior banks did not send
their surplus cash here draw low rate of
interest In order to get better. terms for the
The increase In loans reported by all the ma
tional banks OF New York city from Jan. % 10
March Is is $50. 729. 600 The increase reported by
the ten special depositary banks is $3l IFS SIG
30 there was actually small decrease in the
a. her han.r OF
this city.
The consolidated bank statements of all the
large cities OF the United States domi-
mated 10 such an extent by the operations OF a
Few banks with great capital that IL is difficult
10 determine from the statements what is the
condltion or business In general apart from
speculation and railroad borrowing. The steady
increase In the number OF national banks since
the enactment of the law OF March "a 1900 is
or course, one reason why there has also been
On Increase In loans reported on each succeeding
statement.
But there is also some evidence of a disposi-
tion TO urge loans upon borrowers in order 10
make deposits pay for their keep. Probably
nearly all of the bank failures recently reported
that were not due TO stealing by bank officers
could be traced TO a lack of proper care in
making loans. The fierce light that beats
upon a throne is dim in comparison with the
publicity of the operations OF the clearing
house banks OF New York, and, indeed of other
cities where weekly clearinghouse Statements
made. The great danger OF undue expansion
banks
nd