The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-01-25
THE 1ND1ANApoL1s JOURNAL. MONDAY. s5.
STOCKS CONTINUE ACTIVE
MANIPULATION Is RESPONSIBLE FOR
MUCH OF THE IMPROVEMENT.
Money Conditions show Steady Bet
York from Interior Rapidly.

NEW YORK, Jan. 23-To-day's stock market
was irregular. but the hating movement was
not moro marked than is natural under the
profit taking invited by the weeks rise. and was
sustained by several important points of posi-
tive strength.
After the publication OF the bank statement
there effective rally and the market
closed with important net losses on the day
The operators in the market seemed satisfied
with the increase in the surplus and we're not
impressed with the staggering showing of the
increases in the various items, which broke all
records in several instances.
There Is a general agreement that the rapid
loan expansion now in progress represents large
ly transfer of obligations from trust companies
and outside banks to clearing house institutions
which pay interest on deposits OF other institu-
tons
The statements of New York trust companies.
not yet complete. for the six months ending
Dec 81. show a net decrease in deposits of
Sl02. S76.O53 for thirty-hve companies reporting.
which represents a reduction in proportion of
liability upon bank reserves. trust companies
keep their reserves largely on deposit with the
banks.
But the suggestion is also made that the pres
New York may represent. in part operations by
the treasury in the transfer Of government de-
posits from interior points to New York 20 be
drawn on i'm making the Panama canal pay
Hlcul Inc item OF government deposits Win
the New York banks. however reflects no such
and it is said on good authority that
notices of any call on the government deposits;
banking opinion seems to be that the demand
for money has so far declined as to promise a
plethoric condition in the local market in the
immediate future.
STOCK MARKET GROWS.
The stock and bond markets have broadened
out and grown in volume in the course of the
past week. rising to a degree of activity and
appearance Of strength not seen for many
months The distribution securities affected
by this movement does not appear to be very
wide, according to the reports of the commits
sion houses whose dealings represent the de-
mand of the so-called outside public. which
increased business being done
In contrast the brokerage firms having mem
operators. whose movements are in themselves
scale to dominate the market in ordinary
times and whose leadership Is looked TO by
large speculative following to decide their ac-
In the dealings. In other words, the market
has continued largely professional
OF the large banking interests and groups of
capitalists who dominate the control of the
Stock Exchange whose activity in the market
is looked upon as mere inside interests. Opera
several weeks past but they have been confined
hitherto TO the stocks of smaller railroads and
ndustrials of a volume easily manipulated in
ulatve pools.
MON EMENl 10 IN hlOh-GkADE SIOChS.
The transactions Of this week, however. have
extended to the high-grade stocks with CORE
spending growth of the sympathetic effect on the
| general This kind of professional
semi-professional operations is subject to
tain suspicion. always, in the early stages. due
to the Interior purposes which may be involved
such as the making of a market for new secur-
ties designed be foated. 1t is also true. how
ever, that operations of this class almost in
!
ment of larger scope and of wider public part-
/ cipation.
The persistent abstention Of this class Of OPP
/ smaller and scattered class of operators.
| The development of these large operations has
party Which han been Obstinate in mantaininE
/ the short side. largely because the large opera
tors hsg not MADE tneir appearance on the long
/ ami unwieldy short interest was a material fac
/ tor in the buoyancy late in the week.
The movement was a capitalization of a num-
Der OF influences which have been under dis
| change in conditions. The fear Of be-
tween Russia and Japan was rather definitely
! the apprehension of its unfavorabe effect
| here should Ii threaten again.
The growing conviction Of the abundant
of The bs Ss6 market 9 Of to r"r all o e
upon sentiment. The entire tranquility with
which the money market has met the hotatOn
\ 10 prove its adequacy 10 provide for this class
OF requirements. which has been of
I
/ The rapid expansion of the loan item OF the
clearing house banks in the last month has kept
/ sion in a month OF S55,OO0,oIO, the reserve item
increased over $50 COO. OOO and the surplus over
\ the legal requirement grew to the extent of
/ $910625o Money on call has fallen to per cent.
or under. The rates for time loans have de-
clined correspondingly while the banks have been
/ eager buyers of commercial paper.
RESERVES PILING UP.
The large influx of gold resulting from the
heavy trade balance in our favor for two months
has concurred with the return flood of currency
| from active trade channels to pile up reserves in
the New York banks. No small part of the in
crease in loans by the banks here Is due also to
the transfer Of loan items from trust companies
! and from interior banking institutions to the
New York banks.
These outside institutions lend their deposits in
| are high and the profit attractive. When rates
/ for call loans fall TO the rate paid by New York
| the New York banks directly when money rates
| banks on deposits outside lenders call in their
! loans and fail back on the deposit rate paid by
the New York banks. which are thereby driven to
| md employment for these funds, which they
are paying rate practically equivalent to the
| open market call loan rate.
| Fears Of railroad borrowing, of the preparation
| for the Panama canal payment, and OF the COM
! ing Increase Feb. of the reserve required
| OF the New York trust companies to ia per cent.
from per cent. have declined in influence.
| maintained, sentiment over the iron and steel
I trade has distinctly improved. and the profitable
| crops are being marketed is Of growing impress
! siveness.
The growing demand for bonds has been of no
small influence in improving sentiment over the
outlook for securities. a pressure of capital
unusual prelude I" an expanding market for
! stocks. The extraordinary demand for United
states Steel second hves and for Rock Island
has not precluded good demand at advancing
prices for higher grade bonds.
Quotations on call for government bonds have
not changed during the week