The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-05-15
ERIE ISSUES ARE WEAK
DEPRESSION WAS CAUSED BY DE-
CLINE IN EARNINGS.
In General Way Market Closed Yester-
day Lower than Fridays Last
Prices-Review of Week.


receded for time to-day and then recov-
cred partly, closing irregularly and gen
orally lower than last night Acute weak
ness in the Erie shares had an unsettling
effect. and seemed to be based on the
material decline in earnings compared with
last year
.Amalgamated reacted from yesterdays
advance. The Wabash stocks were weak
on the movement by dissatisfied holders of
Wabash debenture b bonds to enforce an
accounting. The general movement was mar
row.
The evidence of support for United States
Steel preferred had a somewhat reassuring
effect upon sentiment. The bank statement
also failed to show as large an impairment
of the surplus was feared by reason of
the unexpected moderate loan expansion.
However, the very large transactions of
the week reckoned by the system of daily
averages by which the bank statement is
computed confuse the showing so much
that the publication begot hesitation rather
than assurance.
To-day's shipment of s5,0o0,OOO gold does
not figure in the statement at ALL nor does
the payment of the Japanese gold which
arrived at San Francisco yesterday. Also
arrangements already made point for the
shipment on Tuesday of s1O5OO,OOO of gold.
The limits of the gold shipment do not
seem to be yet in sight. Until Paris re-
leases its demand for gold the movement
does not seem likely to be checked.
THE WEEKS DEVELOPMENTS.
The allotment of the Russian loan in
Paris may release funds on a large scale.
A possible contingency is a resulting re-
dundancy of supplies in Paris, which may
divert the tide from that point. Total sales
of bonds to-day, par value, s6450oo.
A growing inclination to sell stocks has
been reflected in the weeks declining prices.
A feeling of doubt and distrust over the
general situation and outlook of business
seems TO have been responsible for the pres
sure, rather than special developments.
The unprecedented volume of the gold
export movement, however, has proved
rather formidable to the feeling OF tranquil
assurance with which this influence has
been regarded hitherto. Former records
for q single shipment and Tor week
total have gone by the board, a result OF
the 50, 900 600 shipment on Thursday, and the
Sl4 600 total for the week, and the former
record for a full months shipments is al
ready approximated for May with the GER
tain prospect Of further large shipments
during the remainder of the month
Meantime the placing of SO 100000 OF the
new Japanese loan of $i0,OO0,O0O, the new
Russian loan and the issue OF $5O,OO,VOO OF
New York Central debenture bonds, with
notice of a refunding measure OF the 81.
Louis * San Francisco and stock issue Dy
a subsidiary company OF the pennsylvania,
mark the undated demands OF corpora
tions and public loans upon the money
market.
The doubt over the ultimate effect upon
the money market is enhanced by the fact
that the plethoric supply of money which
melted this free loan expansion was large
ly artificial, and is not working out accord
ing to calculations.
MONETARY CONDITIONS.
The accumulation of 20 per cent. of gov
eminent deposits with banks in New York
/ for the Panama payment was recognized
as a temporary measure. but was pro-
longed beyond expectation by the delays in
the Panama canal transfer.
Furthermore, it was believed that the
transfer of funds for the payment would
be effected in New York for repositories
| for the French company with the prospect
| that the deposits might remain in New
York for time for loaning purposes. The
/ payment of a large part of the purchase
| price out of free funds in the treasury was
also counted upon, promising additions by
| so much TO the open market supply ol
money out of the idle surplus in the treas
ury.
The decision to make the canal payment:
| in Paris involved the prompt Withdrawal
| of funds from New York for transfer Il
Paris and the gold exports for this pur
pose are rapidly depicting the New Yorl
| reserves. In addition, the decline in tn,
! government revenues has transformed th'
current surplus into deficit for the fisca
| year.
1t was, therefore, deemed inexpedient Il
| draw down the treasury cash balance, anC
the call for 20 per cent. additional of gov
hoe nj
lowed. bringing the total reduction of gov
! eminent deposits with the banks to- $50,
000000 The placing of part OF the japanese
loan establishes fund for that government
| to draw upon. and ii is believed will stol
the shipments of Japanese gold to San
| Francisco, and may even involve some ad
ditional gold shipments from New Yorl
| on japanese account.
RUSSIAN LOAN FIGURES IN GOLD
| EXPORTS.
Also part of this weeks outgo of gol,
was against New York subscriptions to tn
| Russian loan.
The course of our export trade since tn
Panama payment first became a problem
has diminished the supply of commercial
exchange by reason of the heavy shrinkag
in grain and cotton exports, and has throw
upon the market additional requirement
for exchange which are calling for larg
gold shipments aside from the Panama
| payment.
This combination of circumstances has re
| suited in such effiuX of gold from New
York as was never before equaled, AM
some serious calculations are now beini
made to how much further thi
movement is to so. 1t is pointed out on tn
! other hand that the volume OF gold in tn
| country is larger than ever before, an
| has been materially added to by the move
| ment from Japan, while the decline of thi
| and that Industrial activity is sending heav
| Accommodations in bank reserves.
1t is believed that an appreciate advanc
in the interest rate would check the outg
of gold But il seems apparent also tina
many holders of stocks have been induce
treme ease of money and the fear that
rise in the money market would promp
the throwing over of such holding has bee
the motive for some speculative pressur
upon the market and has given added effec
to the reactionary factors in the genera
outlook.
STEEL STOCKS PROMINENT.
The most influential of these is the con
sentative tone of authorities in the iron an
steel trade. The United States Steel Sc
curites have played a leading part in tn
weeks trading, with marked sympatheti
: effect upon the whole list. Railroad trafi
. officials are disposed to admit that tn
advent Of spring weather. although it ha
brought forward deferred tonnage in tn
| volume that was expected
! The decline in business activity has ex
tended 10 some OF the Western section
| which were maintaining a high level hith
| erto. and the present likelihood of def