The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-01-01

Eere advancing their interest rates 10
maI levels and the general money
et was f. condition OF more or less
ency most of the year and security
hes fR-tne-larger cities were shrinking
m twenty TO fifty points the Indianapo-
banks remained IN their normal condi-
h. with interest rates little higher than
bse prevailing the previous year.
The business Of the indianapolis banks
d trust companies is of such a substan-
i and solid character that the great
rinkage of the value Of securities dealt in
the New York Exchange and in the gen.
nj securities market had little effect in
Is city in the way Of increasing interest
ties.
rhe interest rates Of the local banks
ere advanced 10 a very small extent, of
burse. as a result of the tight money mar
etS<-Ne~ York and the other financial
enters. but the effect of this condition was
elt here to a less degree than in almost
my. OF the representative cities.
A representative Washington-street
banker sums I'D the situation in the local
money market during the year 1903 as fol-
lows: Money has been in plentiful sup
ply in indianapolis throughout the whole
year. though as the drastic liquidations in
the Eastern securities market progressed
pine little uncertainty was INFUSED int
be local situation and reserves were
ytrengthened slightly. This condition
|caused a shade hrmer rates. The first part
of the year rates averaged 5 10 8 per cent,
: according to the value of the account and
the character of the security. Lately 6 per
cent. has become the general rate. Loans
by the indianapolis banks have not been
decreased, as in many OF the large cities
but increased for the year nearly $4,000.
4. The situation in the local money market is
tranquil and secure"
In the fact that the foans Of the Indian
apolis banks were increased nearly $780,
900 from Nov. q. 1902, 10 Nov. II, 1903. the
time of the controller of the currency's last
call for statements from the national
banks. IS found an exceptional situation.
ITO volume OF loans by the local banks
Is increased, IT must be noted, in the face
of the fact that In almost. IL not all. of the
Wall-street banks and many Of those in
Chicago and in other of the largest cities,
were decreasing their loans each month
and putting their interest rates very much
higher than those which prevailed in In
dianapolis.
Another condition in the local money
market to which attention should be called
is tie fact that the percentage OF legal re-
serves maintained Dy The luuldildpOllS
4 banks at the time of the last call was
larger than those OF the national banks in
twenty-one of the representative cities
East, West, North and South. including
Chicago. New York. St. Louis, San Fran
cisco. Baltimore and Philadelphia.
Following are the statements of a num-
Der Of the representative Indianapolis
bankers concerning the effect Of the liqui-
datiops in the New York stock market upon
focal moneyamarket and the outlook
for the new year from the viewpoint of the
local banker:
J.. z. FRENZEL, President Indiana Trust
CompaDy-The general shrinkage in securi-
~ values has had the effect on the local
investor TO make him very cautious and dis
eliminating. 1t has had the effect on gen.
eral business of a signal OF warning of an
impending change from the prosperous and
liberal conditions TO greater conservatism.
This naturally has resulted I'm curtailing
Consumption as well as production. OF my
! own knowledge 1 do not know that il has
had tho effect OF abandoning promised or
Needed enterprises or improvements, but it
certainly not served as a stimulus 10
undertakings. The local bank deposits
e not been affected to any extent, but
volume of purely commercial paper has
WIN less. In my opinion the outlook for
E future is for a healthy conservatism
Id possibly greater caution in mercantile
Pd industrial lines.
al. b. WILSON. Coming President of
he Columbia National Bank-The shrinkage
h security values and the general tighten
ing of the money market in the East have
had no perceptible effect upon this locality.
The reason for this is that there have been
no stocks Of the character dealt in n m the
New York Stock Exchange TO any extent
held in this community or in this State.
The slight contraction of loans made by the
banks and the slight Tightening Of the
money market have been as a cautionary
move. This condition has been as a reflex
action on account OF the depreciation of
values in the East. The general business of
this State is good. We have had large crops.
which have brought good prices, and as a
general result all of the financial institutions
of this State. as far as 1 have been able 10
learn. are in good condition. Since the panic
OF 1888 we have not in this locality been de-
pendent upon New York for our relief, like
we had always been before, and as a result
the financial troubles IN the East do not
affect Us TO the extent they formerly did.
J. T.. ELLIOTT, President Marion Trust
Company-Looking over the business trans
actions for the year 1905 we find ourselves
entirely satisfied. SO far as this company is
concerned. and we look forward to 1904 10 be
equally as good. I know very little about
Industrial securities or what they will be
In the future, as the company 1 am connect
cd with has not taken on that part OF the
business. therefore 1 have not looked into
the industrial situation. 1 believe all of our
best securities have held their own, regard
less OF the temporary tightening of the
Eastern money market. 1 see no reason
why next year s'soald not be a good year.
and I believe that business will be done on a
more conservative basis.
o. y. FRENZEL. President Merchants
National Bank-Securities have been slight
: ~ affected locally, because OF the in
vesting public being more conservative or
cautious in their selections. brought about.
TO some extent. by the shrinkage in securi-
ties OF the larger commercial centers. and
the extreme conservatism exercised by
financial institutions. Business generally.
however. has not been affected very serious
ly. and l know OF no legitimate, needed en-
terprise or Improvement that has been
abandoned or delayed because of such con-
ditiOns. The tendency is 10 avoid new en-
terprises. and. although the general BUSH
ness and financial outlook In this vicinity is
good. there is a disposition 10 keep within
safe lines I'm contemplating the future.