The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-06-05

sidered a month ago. The enormous trans
formation Of industrial enterprise into big
combinations. amounting TO about 81 600 600. :
900 In the month Of May alone, staggered
responsible men, and they wisely called
halt. In the future these combinations are
likely to go along on much more conserya-
tive and safer lines. while the seductive
schemes OF clever promoters will be scruti-
nfzed more severely. At present the market
Is undoubtedly depressed by the large
been offered TO the public, and 1t Is quite
likely that insiders will not be able TO UNI
load as successfully as they once antici-
pated. few Of the new concerns are
worthy OF public confidence. but many are
not. and the situation to-day is much the
better for the refusal OF the public TO take
them. The trusts. we think. have come TO
stay. Prosperity is upon us and seems likely
&c remain with US for some time TO come,
so the combinations, good and bad, Will
probably continue successful until the next
period of overproduction and reaction begins.
Then the test must come.
Meanwhile, what of railroad securities
which have hitherto been the most popular
form of investments? Our railroad systems
are well developed and we'll established.
The OF instability. inseparable from the
constructive period, has passed away. In flu
ture railroad bonds and stocks are destined
to rank high among tcs safest investments
in the country AS the Nation grows traffic
must increase. Many Of the roads are now
capitalized on reasonable basis. The float
ing supply of their securities is limited and
while prices often seem high according to old
standards Of value. still in view of present
conditions, such as large earnings, easy
money and prospective continuance OF
prosperity the conclusion seems inevitable
that prices will go to still higher level
as soon as speculative forces become more
favorable. This week these forces have
been arrayed on the bear side, assisted by
exaggerated fears of gold exports, yellow
fever, the Ford bill. etc. None of these fac
portance. Just now il suits the interests
of some of the biggest holders to permit
decline. AS soon as these parties are salts
6ad MA Cnon n M a f1IlxI a ri
movement. but whether that will be deferred
until a further shaking out Of weak holders
has taken place or not time only will de-
termine. Sharp raids are apt to occur at
any time in a market like the present one,
but so long as the present tide of prosperity
no G so; need 0e lnauseo
There were two adverse factors which
influenced the market in the middle of the
case of yellow fever reported in New Or
leans and the other was the advance In
wheat. The scare which the latter produced
was false theory. AS a matter of fact,
the advance in wheat was not due to addi-
tional crop damage reports on this side. but
TO such reports regarding the European
crops, therefore this should really have
had the reverse effect on the stock market.
AS for yellow fever, the effect of that was
much aggravated. AS a matter of fact, that
disease is only attended with the danger of
spreading in the fall months and not in the
spring season. The stocks that met with
the greatest disaster were the traction and
*
mates of the probable effect of the Ford
franchise bill. The industrials also came in
for a heavy break due to the fact that
there has become very limited market now
for their distribution. consequently even
moderate liquidation in them makes inroads
in their quoted prices. Railroad stocks, ow-
ing to their better backing and cheap
money, maintained themselves remarkably
well, thus showing that confidence in such
securities on the part of investors has not
been materially weakened. The bears doubt
less have had in view recently, considering
the close approximations of sterling ex
change to the gold shipping point. the send
ing of some gold out of the country, even
though II was not attended with a profit,
thinking thereby its moral effect would be
an influence on their side of the market.
Yesterdays announcement that 100000 of
the precious metal was to be shipped failed
to produce the effect expected as the mar
ket went decidedly in contrary direction,
thus showing that gold exports are not re-
garded as serious matter after all under
present conditions, especially as this coun-
try now stands on the top of the list of
nations in its gold holdings, the amount of
which Is now estimated at about 81 100000,
900. This Is the best showing that this coun
try has ever made and no other has ever
equaled 1t. We can therefore we'll afford
to ship a few billions to Europe without
any injurious effect, they will not be
missed AS a matter of fact, ii Will be
beneficial in an indirect way to this coun-
try, as Ii will in all probability go to Lon
is comparatively small at the present time,
and thereby increase the purchasing power
in that quarter for American securities as
we'll as the disposition to carry over Ameri-
leans at lower rates of interest. The rate
charged there was AZ per cent at the last
steep rate considering the outside rate for
money at that center"