The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-04-01
Financial News and Comment.

John w. Gates has just returned 90 Chicago
from a tour OF the South and Southwest, which
has kept him away from Chicago for about
three months. He is apparently bullsh on the
stock market. although declaring that he has
been out of touch with its affairs and not
operating in it for many weeks.
Southern prosperity is the real thing" he
said. 1.-The whole South is rolling in money
and conditions they dreamed of are actual
ly there now. The cotton boom has brought
money to every person In the South directly
tory is planted or being put in and already some
OF 1t is ten inches from the ground. So far
as the stock market Is concerned II seems TO me
the better class OF rails still cheap and must
do better, and L feel rather buliish the gem
eral situation. although it would hardly do to
talk Of any great bull movement on the eve
of presidential campaign"
Always buy stock just before the railroad
would go into the hands of a receiver" said the
greatest of Wall-street sages, Jay Gould This
was apropos of purchasing virtual monopoly of
Union Pacific for few dollars share. Pre-
viously ne had permitted a young college man
the company so deeply in debt that foreclosure
dent. put in his and soon had things
on an easy grade. Union Pacific has had many
driven into the last cross tie that completed the
span across the continent. AT the time of the
May panic. 1901. the shares sold up to 1873. and
Union lodges around ST. II is the backbone of
the entire Pacific system and nearly all bankers
believe II must soon be as solid proposition
as st. Paul.
A wager was made and in the office
of E. B. Smith & Co., Philadelphia bankers
that the Pennsylvania Railroad had suspended
dividends for a period of twelve full months
since the civil war. In all the reference books
the statement is regularly made that since 1856
the e,a PennsyivanIa has paid cash dividend In
The facts are that the company paid semi
annual dividend in May. 1877. of 2l2 per cent.
Snyemblr of that and aIso IN aS ,
lowing May. IN November. 1873. semi-annual
% vD1 P Ps5 cent en- b being DE
months from November 1877. to November 1878,
although a dividend was declared in each of
riots were responsible for the cut. net profits
fell from something over sS.OoO.0OO in 1871 to a
little over S5.OoO.OoO the following year.
THE receipts Of currency from the interior are
expected fall off, that the transfer of
United States deposits to New York in pre-
paraton for the Panama payment has been COM
pleted.' says the wall-street Journal The
spring is unusually late this year. but the time
for planting and sowing is close at hand, and a
few days may bring the usual call for currency
from New York by the interior banks. The New
York banks are better pr. pared to meet such a
cali than they have been at this time for five
years and there is the assurance of experience
that shipments of currency 20 the interior, if
made. will not be large nor long continued for
In May large amount of mercantile accounts
are due TO NeY York merchants.
THE frmness of foreign exchange here and
the weakness of sterling at Pans. together " tn
the news that Paris is sti bidding for
gold In the open London markets. in
these have been provided Tor by the transfer OF
United States deposits - New York and by
as well from domestic sneiters. The United
States deposits that have been concentrated
and covered into the treasury, as has been done
at every former recall OF United States deposits
from the hanks but are to be transferred from
10 the credit OF the fiscal agents OF the Panama
Canal Company and OF the republic of Panama.
Gold is expected TO continue coming from
japan in payment for supplies purchased here
and in Europe for as long as the war shall
last. IL this gold and that 10 be disbursed by
the treasury in the Panama payments is needed
more in Europe than IL is here il will so abroad.
but not without toll being taken of it,
The money situation is becoming a decidedly
urinteresting affair. the principal feature being
the continued dizziness which prevails The situ-
alton, in fact. is typical of years following a
boom in the stock market and business general
ly. With the lessened demand for accommo-
dation. money piles up in the vaults ard be.
comes a drug. Banking officials are naturally
not at all pleased with prevailing conditions
since little opportunity is given for a profitable
business. With call money ranging between Ia
and IA per cent. II can be readily seen that de-
OF fully 20 per cent. of that figure. What Is
worse. deposits continue TO pile up.
deposits with their New York correspor.d.r ts
and In the meantime drawing per cent H.
| terest. Later they will draw upon thei.
United States deposits. An early call by the
| government for the Panama payment would.
therefore. be most satisfactory to the New York