The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-02
General Financial News.

Thus far the only noticeable effect which has
been produced by the Russo-Japanese war upon
the situation at New York. says the Financier
has been to impart ease to monetary conditions
This ease has partly resulted from the increase
in supplies of money caused by the transfer
hither from San Francisco of sold which has ar
rived at that center from Japan for the pur-
chase of foreign exchange. 1t is expected that
this movement of money will continue at least
in the immediate future, though its volume may
be reduced the requirements of Japan for
meeting European obligations for which these
remittances are made, shall become satisfied The
Commodity markets have been infuencsd 70
sor,e EVENT nv the war though nrobaIiSr n,o ~
by expectations of the development of an acute
situation In the Balkans than by prospects Of
large requirements by Japan. The indirect eff
fects of the far Eastern observable in
the almost inert security markets NOT only her.
military movements upon Manchuria and ~ tbs
consequent activity of China. While uncertaintv
exists to the eventual outcome OF the Russo
likely to be disturbed by the aggressive attitnds
Of the Bulcarians and the Turks normal condi-
tions Of tho foreign financial markets cannot be
expected and a state OF unrest will prevaiI
which will be more or less reflected at this CEN
ter The outbreak of hostilities i'm the Rallens
would precipitate a new crisis involving the
European powers TO such extent as completely
derauge the foreign financial situation and
temporarily. at least, affect own Therefore
while these disturbing factors exist. speculation
will remain inactive and capital will seek en-
ployment in forms wherein IL can be most readi-
ly controlled.
The determination OF Secretary Shaw not ~
call in the p per cent. of United States denosts
until after the legality of paying to the Panama
Canal Company $iOOoOOOO has been passed upon
by tho attorney general of the United States
necessarily defers the accumulation in the ten
special depository banks of this city OF the s22 -
O5O.CO0 that is TO be withdrawn from the other
banks in the United States But since il is Ger
tam that the payment Will be made within a
snort time, even If. in the opinion OF the attorney
general. ii must be authorized by an act of Con-
gress supplementary to the SpOoner act and 70
the PaEama treaty, IL is probable that some
banks having government deposits will send
their 20 per cent. thereof TO their New Work
correspondents to draw interest pending the cali
of the secretary OF the treasury. From such
sources the banks may continue to gain cash
from the Observation-Disclosures Journal.
Early in the present season. the easy money
Market per cent call and or less on time
was cited a reason why Stock Exchange
prices would advance. They have not advanced
and present the reasoning more generally,
favored is that money is easy because the Sc
curity market does not advance In other words
caoital so few speculative accounts ,pa tO~eu
mand for sO-called street loans" is excention
ally small. This explanation is somewhat SINH
lar TO that LOT the per cent call money mar
ket last summer. in the face Of the seemingly
funds II Is, however, an almost unfailing prece-
dent that the upward turn in the money market
VIII come Win the opening or spring. Last wear
started out precisely like this; but call money
rose to 8 per cent In the nrst week OF March
: per cent, and in May, .. II brought i'm Mav
1901: In March, 1900 II in March OF 1889 ana ye
in April 1t Is rot until the record goes bsct ~
the great expansion OF financial activity that We
meet again the unruffied spring money market
The story OF 1894 will probably depend o.
whether the drain on banking capital which he
came - heavy during January will ne -
sumed. II the bank surplus holds up mone,-
rates will stay down. But the attitude ~ The
corporations may have something TO do with
that-New York Post '''