The Providence news. (Providence [R.I.]) 1891-1906, 1893-12-28
TIE FINANCIAL NEWS.
BULL SPECULATION IN sILyER ar
BoMBArHAs C0LLAPsED.
London Broker Goes Under Carrying 4.
s. n. ana Atchison-The 500 Line
Cuts-Scw England Gossip.

4
showed some covering OF shorts yester-
day. A modification OF Richmond Term
| inal Is expected shortly. London market
shows little change. Broker Phillips has
| failed on London exchange. He was
long of 1000 Louisville and Nashville and
$500 Atchison. His failure precipitated
smaller one. The 500 line has attracted
attention at Chicago by making go diff
| ferential on frst-class tickets from st.
Paul to Pacific coast points. Con-
ference viii be held January
4. The bull speculation in
silver at Bombay has collapsed with large
losses to the promoters. Pennsylvania
statement for November shows east OF
Pittsburg gross decrease OF s729, ,130, and
and net decrease OF $197,242. The lines
west of Pittsburg show gross decrease OF
| $685., 1888, and net decrease of $751;, ,322.
Judge Truax has denied the application
| for an Injunction TO restrain the New
| York Central from bidding for New York
and Northern at foreclosure today.
n Syndicate Gets Cherokee Bonds.
Cherokee bonds are said to have been
sold to the Erlanger syndicate at st.
| Louis.
Western railroad officials say that busi-
| ness is dull and will continue SO for two or
| three months. President Cable of Rock
Island says, however, that he thinks the
| decreased earnings have been fully dis
| counted by the decline in prices.
| The lack of material rallying power to
| the market is source OF grievious dis
appointment to the bulls. The existing
large short interests certainly justiies the
belief that two or three point rally in
| the general list could be brought about
but whenever it is attempted the OUT
| pouring OF stock nips and chills 1t in the
bud. Looking calmly at the events of the
| past month the bears seem to have been
| favored beyond the widest anticipations.
Receiverships, bank failures, mercantile
embarrassments, bad railroad earnings,
all have contributed TO the making OF q
successful campaign for the bears. In all
human probability the market has seen
its worst, however, and will, before long,
| quiet down.
The report OF the Northern Pacific re-
ceivers for the month OF October showed
an increase of S1A2,645 in net earnings
compared with the net earnings in Sep
tcmber.
An Easy Settling Day,
This is settling day ut the Stock -ex=-
change. The market is quiet and the set
tlement is passing easily.
The market Is in an oversold condition.
Purchases on all breaks are advised. There
is no prospect OF an early change from
the unsettled condition OF speculation
and the only buying power in the specu-
lation rests upon the occasional purchases
to cover short contracts.
The bankruptcy and receivershipping of
New England caused no surprise 1t was
expected. Nor does it close this fiscal years
chapter of similar reverses which opened
with the downfall of Northern Pacific.
Hard times and continued shrinkage in
revenues lead to the belief that there is
still work left for the courts to do, though
the securities of most of the properties
concerned are now selling on a receiver
ship basis and even below what was held
TO be such basis but few years ago.
The Present Panic and lis Cause.
The credit panic which the United
States is now experiencing and has been
experiencing with varying intensity the
past ten months, is still the situation
and the topic of the hour. A panic such
as the present has never before been
witnessed in this or any other country. II
is neither fright OF commodity prices nor
for the present is 1t demand for silver or
gold. Money will today lend at 1 and 2
per cent. to collateral borrowers out of
business, but to borrowers who have bus
mess to do it Is almost unattainable.
Great railroad systems with collections
OF millions a month dare not yet venture
business expansion nor even purchase
OF rails or ties at these abnormally low
prices beyond their immediate needs.
Erie, learning its full charges and surplus
of million besides, reaches the limit OF
its credit and tumbles into court. Read
ing, in the simple business of
amaIgamating coal production could not
borrow half the cost of its labor and went
into chancery, yet kept turning over an
taracite at profit oqualing the interest
charges on all its securities And there
are Others too, notably the Atchison.
All this is due TO the times.
President Robinson of the Mexican Gen.
tral railway is expected to arrive in Bos-
ton early next week. Recent remittances
from Mexico have furnished all the money
needed for the company's January inter
est charges.