The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1899-01-31
IT IS IHE OUTSIDER
Whose Speculative Fever Up
heaves Wall Street.
INTEREST ON INVESTMENT
Is Down to Stay--Low-PriCed
Shares Next.
INTEREST ON INVESTMENT

New YORK, Jan. JJ.-Henry C4eWs says.
The business OF the stock exchange last
week exceeded everything in the history
of that institution. Mondays sales beat
all previous records; !. 72l. 90 shares were
reported as having been dealt in, and il
is fair 10 assume that 5000 or more shares
beyond that went by default during the
excitement prevailing. The previous larg-
est number Of transactions was February
20. 1893. when 1,474,O00 shares were dealt
in. That was the memorable Philadelphia
and Reading day when Mcleod got su-
preme control of the anthracite coal out
put. For the first four days last week
the transactions aggregated $4,000
shares; for the same four days Of last
January the sales were 1.467, 100 shares.
These totals may, in some degree, repre-
sent the large increase, in late years, Of
the amount of securities dealt in on the
exchange; but they still more express the
pitch of enthusiasm 10 which the current
expectations OF national development have
raised the public mind Wall street has
never before witnessed such q food Of buy
ing orders as has been represented in
these operations. The extraordinary vol
ume is not ing orders as has been rep
resented in these operations. The extra
ordinary volume is not due so much TO the
manipulative maneuvers Of professional
operators, as TO a continuous stream OF
orders coming from all parts OF the coun-
try. The main cause of the activity lies
in the mail orders from the considerable
class in the interior cities and towns who
have been making money for the last TWO
years OF abundant crops, while New York
has been grumbnng about unsatisfactory
business. Those profits have gone into
savings as much as into increases of ordi-
nary expenditures. and the current excite
m-nt is bringing out the boards partly
for permanent investments. but perhaps
more for speculative ventures. We have
therefore an outsiders" market in a sense
and to an extent never before Witnessed;
and il is the largeness of this sanguine ele-
ment, much more than any purely local
speculation, that accounts for this extra
ordinary buying virtually irrespective of
prices. For many months past the pros
perity of the west and southwest has
shown itself not only in increased earnings
of the railroads, but a,so in the unprece-
dented amount of funds in the interior
banks and in rates Of interest almost as
low as those current at New York. This
has led to a steady stream Of investment
orders from those sections; and now these
accumulations are being drawn into the
speculative movement Of Wall street with
a rush that creates wonder as to where
all the money is coming from.
London, for some time past, has been
selling 10 an almost unlimited extent calls
on American securities. and the rapid rise
in the Vanderbilts has completely upset
their equilibrium. Immense orders from
that quarter came in conflict with the ac-
emulation of orders over Sunday from all
parts Of this country, which made the
competition on the buying side last Mon
day morning greater, probably. than was
ever experienced on the floor of the ex-
change
The natural conditions prevailing at the
present time IN this country are Of course
in favor Of the bull side OF the market 10
an extent greater than at any previous
period. When William H. Vanderbilt sold
to a syndicate 5000 shares OF his Ne"
York Central stock a an average price of
100. the company was paying 5 per cent
dividends and 3fr. Vanderbilt guaranteed
a continuation of S per cent for three years.
At that time il required q stock 10 pay
per cent dividends to justify its market
price to be $50. Now this same company
only pays per cent dividends and the
stock sells at 40. The money and bust
ness conditions Of this country have IN
dergone a change in the same proportion
since that time II is due TO this change
that a per cent stock now sells as high
as an per cent stock formerly did. The
investment interest rate has gone down 10
stay in this country, 10 be in keeping with
the rate prevailing In the European money
centers. The reason for this is the gen
eral confidence, both at home and abroad
in our maintenance Of TIE gold standard.
together with the recognition Of the vast
resources Of the country.
When William Jennings Bryan was nom
mated for the presidency the depression
prevailing was so great (as was the despair
caused by IL that II made most people
desperate. II was no wonder. therefore
that 50 many voters wanted the county
deluged with IS 70 l silver money. They
were really Ike a drowning man snatch
ing out for q straw TO save themselves:
but with the marvellous change n the
money situation that now presents itself /
the country has gone 70 the other extreme
by being overwhelmed with god money.
The United States treasury as wei as the
5ankink institutions OF the country are
perpisxed % know how 10 take care o.
their huge loads. I, Is the return Of con
fdence that now makes I per cent prop
erty in this country sough. for by every