The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-05-23
STOCK MARKET OUTLOOK
GENERAL FINANCIAL SITUATION is
SOMEWHAT IMPROVED.
Bank Statement Saturday Indicated
that Gold Expectation Is About
Over-General Conditions.
,p..cial TO the Indianapolis Journal.

Special TO the Indianapolis Journal
NEW YORK. May 22-If the short ses-
sion of the Stock Exchange Saturday can
be taken as an indication of conditions IN
th. securities market and the general sit
uation in the financial district, there Is
sof4ae prospect OF more active market this
week.
Stocks. in a general way. have been SO
dull lately that IL may not be unwise to
draw the conclusion that things are snap
Ing themselves for more activity. The past
week recorded several changes that Will
hslp TO stimulate the market. Perhaps the
most important OF these improved condi-
tons is the financial situation, as II was
shown by Saturdays bank statement
IN the first place, loans were decreaseo
nns,re than SO. 10000 This is regarded as
vtsry favorable in the Wall-street district.
a the continued enormous expansion OF
leans all spring and the latter part OF the
wsnter was one of the things against an I'M
ptovement in the securities market. 80
tie beginning of contraction OF the loan
item Is regarded as a change for the pet
ter.
In the second place. the general situation
points to a discontinuance. OF the exporta.
ton of gold The exports OF gold have not
had much real effect upon the money mar
ket. but IL they should continue much
longer they would hurt speculation. 1t IL
the general opinion that gold exports Will
not continue much longer. The pTlnclpdl
g<ound for this opinion Is That $ovDVo ot
abroad. And in the present status of the
exchange market expectation of gold from
Nav York is not really profitable
Another feature of the bank statement Is
regarded as faYora bic to the stock market.
Deposits decreased nearly 100000 last
week This shows in a small degree that
more money Is being used In business. And
IL can be said pretty safely that a large
part of II found employment in the securi-
t4.s market
SO sizing UP the general situation care
Il somewhat
lively that the outlook in the securities
market Is a little more encouraging than IL
was week ago.
Whenever the supply of money here is in
excess of the demand the surplus is export
ed in the form of gold coin or bullion.
When the supply of money is short here.
and the bank surplus Is running low. for
eign bankers take advantage of the oppor-
tUnity 10 loan their credits by the sale of
bills drawn upon their home offices, thus
taking over the loans which under the re-
qnirements of banking laws and the rule
of the clearing house, the banks are no
longer In position to carry These opera
tions by foreign bankers have just begun
for this year, and have not yet assumed
the MAGNITUDE that has characterized them
In former years. But some of the largest
commission houses have been quick TO see
the advantage of such loans and have al
ready provided themselves from this
source
their money here at rates below what they
can get at home, and IL has not been pos
siole for them to make loans to advantag &c
until within the last few days. Neverthe-
less they have watched for several weeks
the bank statement go from bad TO worse
with loans increasing and reserve decreas-
1Isg, in confidence that under a continuance
OF such conditions money rates must adj
vance 10 a point at which II would be
profitable for them TO enter the money mar
bet as lenders. The conditions this year
are unusual in respect 10 the Panama pay
ntent and the Russo-Japanese war. which
requires the shipment TO Paris of an ex-
ceptionai amount of gold. But at this time
T. year ago we We're sending gold to Paris
* the rate of about 100000 a month
Chile foreign bankers were lending credits
70 much greater extent. All the credits
were Cancelled and the gold exports recov.
cred by the exports of cotton in the fall
OF 1903