The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-11-12

accurate knowledge OF the properties whose
shares they sought 10 possess. and who held on
from buying from desire TO see the issues OF
the election first positively determined. Sub
stantial banking interests have been large buyers
IN this class, partly frofa a conviction that
nlgner level OF prices IS warranted by the grow
Ing certainty OF sustained business prosperity
end partly, doubt. In connection with plans
for hnancial and administrative changes IN great
corporations. involving increased economy OF
operations and consultations and combinations.
There can be no question OF the increased health
brought to the market By this class OF buying.
which satisfied substantial and legitimate de-
mand and reduces the floating supply Of stocks.
and confidently held. Such developments as the
extra dividend disbursements by the Pennsyiva-
Ela ana the Northern Pacific companies are ex-
ampies 81 the substantial benefits which invite
buying Of this class. not only on the ground of
the immediate money distribution concerned brt
Tor the index AFFORDED for confidence in the fI-
ture earning power by conservative and compe-
tent authorities. But the purely speculative
buying OF stocks, which was attracted bv the
passing OF the election, on an enormous
scale from all quarters Of the country
Last weeks conditions in the money market
constrained and reprasscd much speculation that
was eager TO embark, but the event proved that
the money market conditions were themselves
due TO precautionary sn'imcnts rather than to
any actual scarcity CT funds. After loaning at
70 per cent on Monday, and with an absorbing
demand Tor money for speculative purposes on
wednesday, the rate nevertheless fell TO 1 per
cent on that day. The stock market demand
Tor money has been freely supplied all week and
the low rates for money have been Themselves
an Increment TO speculation II all that is ex-
ptcted OF increased business activity actually re-
suits IL Is a question whether specrI ators will
lot oVerrun the available resources Of the money
market anc run into the embarrass ment OF n
money squeeze Some of the plans OF capitalists
which have waited on the election have in
vowed further lending Of money in tie form CT
government loan investments thus absorbing
portions or the countrys available credits In
the nurly-burly OF speculative excftment IL is
inevitable that the advance In prices affected
al classes OF stocks, good bad ana Indifferent
and SPECTATORS gain I'm recklessness on an ad-
vance Wnen the very time is approaching to war
rant caution The most reckless and unInformed
buying comes from those with no other purpose
than 10 sell at higher prices. and who will be
FORCED 10 sell, in the event Of a reaction 10 re-
pay borrowed money. Having bought IN one
group OF stocks they employ the profit shown
on paper by the advance in price to buy in an
other group, thus building an inverted pyramiJ
Buying OF this character detracts from the
equilibrium or the market, which grows more
unstable with every advance In price in
viting to sudden and violent collapse FREQUENT
digestion OF profits is the only Safeguard against
a catastrophe In such a market and the nori
ponement of reaction is not for the health OF the
market. - ~
The large demand for railroad bonds affords
better index of the substantial character of the
buying than that for stocks. United states new
tours advanced rs. the refunding twos when
issued, and old tours q, and the threes and fvas
y per cent over the ruling call price OK a week
ago - wen
Following are Saturdays share sales ard tho
closing bid quotations; N 'ie