Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-11-29
SPECULATIVE sURGINes.
Unscarr0nted Actfvitv IN Wall Street-A
Crash In Stocks not Inspr0babte-Rnmors
of Vanderbilt Raid 0n the Gould In

Un.carranted Acttvitu Jn WaH Street-A
Crash In Stocks not Inspr0babte-Runaors
of YanderbtEt Raid on the Gould In
terests.
New York Special.
The whirl upward in the stock market
within the past few days, although not of
sensational proportions, has been surprise
to almost everybody on the street. Various
explanations have been given for the rise,
the most reasonable of which appears to be
that Mr.. Vanderbilt and associates have COM
bined against Gould and Sage for the purpose
of compelling them to cover or settle large
short contracts in the Vanderbilt specialties
and the grangers; also, that the managers of
the Northwestern have determined to de-
clare whatever scrip dividend they decide
upon before the new year, so as to evade the
law of Illinois, which is said to prohibit
the payment of scrip dividends after that
date. The rise in Erie was sought to be &C.
counted for by the statement that Mr.. Van
derbilt was buying the stock, and that he
would go into the board of directors at the
next election and declare dividends at once.
The movement in Union Pacific was ex-
planned by the story that arrangements for
the consolidation of this road with the Gen.
trail Pacific was perfected. The covering by
the smaller bears and the purchases for
"long" account were heavy in the late trade on
Wednesday, and the market was whirled up.
ward at the close, and after the board ad-
journea the call was kept in motion in the
street, and in the evening the trading was
large at the uptown hotels. Conservative
dealers say that outside spectators should
-, cIo
stories. Rumors of this character, they say,
almost always precede crash, and very Of
ten they are put in circulation for the pur-
pose of making market on which the CLIQUE
can unload. If Mr.. Gould has been caught
short of the market, he will find some way
to wriggle out of the scrape. If the North
western company declares scrip dividend,
the fact will excite the granger ele-
ment IN the Western States, and the legisIa-
lures may be induced to pass laws which
will greatly restrict the earnings of the rail
roads. 1t is understood the Erie directors
have decided not to divide any portion of
the surplus earnings this year, and the story
that Mr.. Vanderbilt is going into the board
of directors is pronounced in some quarters
to be an old report revamped for this occa-
sion. The Lake Shore & Michigan Southern
stock has been added to the London list, and
is selling at 129. The Times correspondent
is told that the recent visit of d. P. Morgan,
one of the largest and brightest of Wall
street spectators, was for the purpose of
attending to the listing in London of this
stock, and of attending to the London mar
ket for several American railway stocks in
connection with the speculation in this mar
ket.
1t is believed that the boom has about run
it's course, and as pretty certain indication
of it, it may be said that to-day the large
operators have been persistent sellers of
stocks whenever the market would take them.
They have continued the manipulations of
stocks that at times have declined % per cent
between sales. The market has advanced so
far that it has absorbed very large part of
the loanable money in Wall street. 1t seems
that the demand from the west and south
has absorbed all the gold that has been re-
ceived from Europe in payment for securities
marketed there. In addition to this
the reserve has been so cut into by the banks
that they are at the present time poorer
than they have been for the past six months:
and, now that the market shows that il has
reached the highest point, the bank presi-
dents will probably be a little more careful
as to the class of sureties en- which they lend.
There are a number of banks that the comp
troller of the currency should to day counsel
to call in their loans in order to keep them
selves as the law requires. As it is, they de-
pend upon the more conservative banks,
which always keep above the reserve, to es-
tablish an average.