The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-02-14
SPECULATION in STOCKS
REVIEW or THE SITUATION IN WALL
STREET LAST WEEK.
Contest for the maintenance of Re-
cent Advance in PrIces-AmaIgama-
ton of Hallway Properties.

In reviewing the situation IN wall street
last week Henry Clews the New York
barker, says: During the past week the
stock market has shown no new aspects of
Importance. The main feature seems to be
a contest for the maintenance of the recent
fresh advance in prices. Values have
reached point closely approximating the
high range of prices established five months
ago and from which there occurred a very
large decline 1t is perhaps not unnatural
that at such a stage there should be those
who, reasoning on general principles, begin
to ask zis prices fell ten to twelve points
from this level in September and October
why should there not be some reaction
now? On this sort of reasoning some of the
more pessimisticalIy disposed operators are
yenturing to sell in tentative sort of way.
Their sales produce "a temporary effect
upon prices but, at slight concession,
buyers are ready to take such offers with
considerable avidity. it begins to dawn
upon these bearishly inclined operators
that general principles admit of excep-
tons, and the exceptional facts in this
present case are not difficult to discover.
The great break of last fall was due less
to the elevation of prices than to certain
speculative conditions. The market was
then flooded with small operators who We're
using their accumulated profits for mar
gins and some large spectators were ac-
cumuiating lines of stocks in excess of their
supposed ability to carry them. These con-
ditions created danger in the money mar
ket so real and important that the Wall
street banks felt compelled to discriminate
In a way calculated to stay those evils, and
this Intervention was the immediate cause
of the breakdown in the fall speculation
At the same time there was then a very
active interior demand for money, ana the
bank reserves were rapidly falling, Whlle
in some quarters the great Union Pacific
settlement anticipated with some
timdty also the Improvement men, IN tns Of
only two or three months experience anu
therefore not certain of being permanent.
A PLETHORA OF MONEY!
such were the conditions of the fall mar
ket What are the conditions now? The
class of weaker operators have been sue
ceeded by persons of larger means and bet
ter Judgment of conditions and about whose
ability to protect themselves there are no
misgiyings. In place of the uncertainties
of the fall money market there is now an
extraordinary plethora of money, not only
here, but also at the interior centers, which
brings hither orders for securities, on both
speculative and investment account, from
the larger cities The Union Pacific settle
ment has ceased TO be bugbear, and there
Is nothing to disturb the confidence OF the
banks i'm Stock Exchange loans. The adj
Vances of New York and other cities to Eu-
ropean money markets are estimated to be
certainly not less tnan $50, 900 900, which as
sures the maintenance of ease In money a
long time ahead and suggests reasonable
probability that we may this year escape
our usual spring exports OF gold, and, pos
sibly import some between now and mid
summer. Since the fall break in prices we
have had four months of railroad earnings
confirmatory of the prospects OF a perma-
nent large recovery in railroad finances,
which a few months ago could be only
matter of hope Also, the change in inter-
national politics has been for the better
In the fall there were apprehensions that
the Cuban situation might develop into serl-
ous relations between this country ana
Spain; later, the Presidents reiterated as
suranees seem to leave no doubt. that the
administration is bent upon the mainte-
nance of peace If possible. This great con-
trast of conditions, as compared with four
or five months ago. Is so complete as TO
suggest that the present situation is not one
for the application of general principles
but rather enc for the application of the
rule that circumstances alter cases Con-
dtions such as these cannot but appeal TO
the speculative spirit, and taking the exist
ing status a whole and making reasOna-
BILE allowances for the future promise of the
business of the country at large 1t seems
reasonable to conclude that situation of
affairs more encouraging to Stock Elk
change interests has rarely been presented.
RAILWAY CONSULTATIONS.
upon railroad properties of Il series of
amalgamatons and financial reconstruct
lions connected with certain companies.
These operations indicate tendency which
may easily spread and with much advan-
tage to the finances of the companies so
handled There are few things so much
needed in connection with railroad finance
as the amalgamation of adjacent or con-
Meeting roads and the reimbursement of their
debts at lower rates of interest The effect
must be not only to diminish the costs of
management, but to unity interests which
have been more or less conflicting, and so
Tar the tendency will favor the avoidance
of the cutting of rates which has so long
been the bane of railroad business. This
week We have to note another deal of this
character. Arrangements are under way
by which the Lake Erie & Western is ex-
pected TO ma Ike some important new con-
neeuons. 1t is contemplated to extend the
line eastward from Akron to a point at
which It will connect with new line which
Rochester & Pittsburg Railway from its
system in the Cleartield coal region, which
IS a point of Importance in the coal and
coke country. This new system will get its
Eastern outlet over the Buffalo, Roches-
ter ~ Pittsburg, the Beach Creek and the
Reading lines. Connections with the Car
negie lines will also be established The
new line will be an extension OF the North
efn Ohio division, which, from having been
oil the Lake ~ WESTERN
should now become valuable property.
The lengts, of road to be built is about
iSe miles and the contemplated cost
The position OF the China question has
changed in direction that BODIES advan-
tage 10 our financial markets. though Wall
street does not at present attach any great
weight To the fact. The opening up of that
great empire to foreign commerce could mot
Out deeply AFFECT European politics. All the
symptoms have seemed to suggest the pos
sioilty OF serious war, with England on
the side of free enterprise and Russia. Ger
many and probably France committed TO q
pclcy OF military aggression and exclusive
privilege. Such possibilities We're . menace
10 peace mat Europes great banking inter-
ests could not ignore, and recently a spirit
OF marked conservatism has appeared in
their credit operations. Lord Salisbury in
the British Parliament and Baron Won Bue-
low in the German Reichstag have. how
ever, given full Insurance that their gov
ernments. along With that of Russia agree
upon common policy of making whatever
privileges may he secured in the ports and
the territory OF China free. and upon equal
terms 10 all stations. Thus a question OF
the utmost consequence to the future of the
worlds trade has been settled upon lust
and reasonable principles. and the possjhil-
ity OF its becoming the occasion for a great
conflict has been avcfSed. This fact
amounts 10 4 new Inspiration Of confidence
In the relations between Me European
powers. which. at the same time means
the strengthening of confidence I'm the
higher circles of finance the world over.
'.AR gilf-edged bonds are bound To go 10
q 3-per-cent. basis. ii not less. Such securi-
ties al& now getting very scarce; they are
pretty well bought up By investors and held
~ II lfi-r.4 Re tsfll