The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-04-24
STOCKS CONTINUE DULL
PANAMA PAYMENT OF Sfo,eOO,O 900
MAY BE MADE IN GOLD.
At Present Condition of Exchange
Market Gold Is Cheapest Form of
Remittance to France.

small dealings were transacted at little vari-
alton in prices. News developments were ig-
nored and were without power TO move the
market. The engagement of 81, 200 in gold
for shipment TO Paris on Tuesday was an
nounoed, and probable further shipments on
that date were outlined.
The signature of the contract of sale of
the Panama canal brings the arrangement
of the payments into the immediate field of
the exchange market. Ii is believed that
any accumulation of exchange bills, with
the demand for the payment in view, has
been absorbed again, owing TO the high
price at which exchange has ruled since the
various postponements of the payment were
made. Offering profit to those who had ac-
cumulated the bills. 1t is evident that in
the present condition of the exchange mar
ket gold is the cheapest form of remittance
and it would not cause surprise if the total
100000 to be paid to French stockholders
should go out in gold. The bank statement
shows how money continues to accumulate
here and explains the easy outgo of gold.
The plethoric inflow of money does not
carry an index Of wholesome business actiV-
ity and is not a favorable influence on the
stock market
corporation note issues have not been made
on large scale this week. Wall street ex-
poets more of these issues, however, and
rumor to-day was busy with two OF the
large railroad corporations, one East and
one West which are expected TO be next in
the field with large temporary loans. Total
sales of bonds, par value, $780, 600.
REVIEW OF THE WEEK.
The growing dullness of the operations
in stocks this week has not resulted in any
loss of ground so far as prices are con-
cerned. There were occasional recessions,
which were made up as the sentiment of
the traders varied from day to day. or as
their operations on one side of the market
proving unsuccessful were followed by the
closing up OF small speculative contracts.
The neglect of the market is largely at
tributed by the public opinion in the street
to the prospect of long drawn-Out litga-
ton over the question of the manner of
distributing the assets of the Northern
Securities Company. But ii may be ques-
toned whether other and deeper lying
causes are not behind the hesitation shown
in the securities market, both here and
abroad
The condition which is common to all of
them is the plethoric condition which has
developed in the money markets and the
backwardness of capital about taking fixed
Judgment in investments. Money on call
and ordinary time loans is in redundant
supply, with very slack demand while
railroad and corporation notes running
from one to three years command high
rate of interest in, our. own market, and
for lack Of an absorbtive demand.
FOREIGN LOANS WELL RECEIVED
Government issues in London and Paris
have met with an improved reception with
in a week past, but the rate al which they
have been issued does not indicate good
market for even those high grade securi-
ties. The placing of these issues is accept
ed a symptom, however, of a possible
breaking of the deadlock
So is the offer of 900 of New York
large as was ever before offered at one
time The accumulation of capital at Paris
has foreshadowed the issue of a Russian
| loan at that point and rumorS of French
subscriptions to such a loan have become
more defined as the week progressed. Ii
our own market the issue of short time
railroad and corporation notes seems tC
have come to pause this week and there
| have been rumors of dissatisfs elton ex
| pressed by stockholders in some instance:
| at the amount of these issues at high inter
| est rates, while the readiness with which
| they have been taken seemed to promise al
| improving opportunity for securing cap
ital by bond issues on more favorable
/ terms.
/ A compilation of the short term corpora
ton notes issued since JAN in this marke
| reveals a total of considerably over 800,
| 100000. Nothing important is hoped from
/ the bond market until the issuance of thi
|
| ing is expected TO claim the first re
sources of capital offered on favorabl
| terms. Projected war loans will have
similar preference on capital. 1t is evi
dent. also, that war expenditures play
| considerable part in the present fedundanc.
| in the money markets.
JAPANESE GOLD AFFECTS MONEl
| MARKET.
The inflow of Japanese gold to our owl
market is a case in point, and the ship
ments of gold from New York to Paris car
ries the supply to the market. The gol
shipments are supposed to be remittance
against the Japanese gold, the payment o
Japanese obligations in Europe by tina
| route offering advantages over others b.
reason of the free transmission by tele
graph across this continent allowed by tn
| government
| The reduction of the Bank of England dis
| count rate from 31z to per cent. this week
| following similar reduction last week
marks the assurance felt by the Londo
| money market in face of the continued bid
ing for gold by Paris. Besides the outfloy
of Japanese gold in the money market. it
| reported that Russian balances in the bank
OF western Europe have been largely draw
| down since the outbreak of the war an
| presumably disbursed in the money mar
| kets.
Another factor in the money market tina
| is receiving increasing attention is III
growing supply of new gold, both from In
Transvaal and from Alaska, with the pros
pect of a still further increase in the rat
OF production by supplying labor require
ments in the Rand. How far or how 500
this may prove to influence the measure {
value at the rate of interest is a problel
that NAV enter the hesitation in takin
fixed forms for long periods now man
tested by capital in nearly all markets.
IMMEDIATE CONDITIONS.
| Conditions of more immediate const
quence have added to the uncertainty
the markets. The belated season and til
winter weather of the week have held bac
business and prevented an adequate outlir
of its volume for the season. The possib
effect on the crops has been an issue, an
fears of crop damage have been felt will
cut marked reflection in the grain market
owing 10 speculative complications in thos
markets.
Less confidence has been expressed
trade quarters in the iron ana steel ma
kets, Notwithstanding progress towards a
| agreement amongst ore producers. HeaV
| ness in United States Steel preferred hs
been an important sympathetic influence c
the whole list of stocks. Railroad carr
ings have continued to run. below last yea
The spring reduction in the anthraci
; price schedule has resulted in large demaT
for that product, and the coalers have BET
strong. The speculation in New YoI
municipal bonds has had TO do with legisl;
tive chances.
The losses by the Toronto fire were m
calculated TO stimulate demand for secur
ties. The Panama canal payments are e.
, pected 10 be an early factor in the mon,
, and exchange markets.
\ - IN