New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-01-07
financial.
The Financial World.

several days when it became irregular and as
sumed tired look which was its aspect AZ ~.
close yesterday. 1t appeared as il the rebon,d
from the late smash had about run its coursa
There were several causes contributing to the
strength the market displayed in the first haIs
of the week-eauses which under more favor
able conditions would have sent the whole list
upward In burst OF activity: but these causes
were offset by the continuous foreign selling.
and the somewhat crippled condition OF the ma
jorfty Of the traders They have been hurt. and
the courage is largely taken out OF them One
has only to go round among the commission
houses to this. The customers look anxious
or listless. The stocks which have been moved
up most Indicate that the big men have pulled
themselves together again. after the late smash
and united in the effort to broaden and
strengthen the market; but the difficulty is that
the rank and file cannot follow. They have
.been too badly hit. 1t will take them some time
to recover.
If the foreign situation would improve there
would be great change; but instead Of improv-
ing< something seems to turn up every day 20
darken the clouds. The latest was the scare
over possible trouble between England and Ger
many,-a thing almost impossible TO suppose,
not only because of the friendly relations be-
tween the two Governments. but because Eng
land has all she wants of trouble now. and is
not likely to add to il. The heavy selling from
Berlin however. set down to fears OF IN
ternatiOnal complications But il was signih-
cant that our wheat market which is usually
abncnnally responsive to fears Of European
trouble. went down at this time. The chances
are that political uncertainties merely accentu-
ated a speculative situation in Berlin which
would have caused liquidation anyhow The
money markets both here and abroad. are nov
ing as they always do after a considerable
smash-that is. toward greater ease. Rates are
lower in both London and Berlin here. banks
are beginning to ask customers il they want TO
borrow This indicates an easier state Of things
than recently prevailed. Money is returning
from the West causing some tightening OF
rates there; and unless have to export too
much. 1t ought to continue fairly easy at this
centre. With lowering rates on the other side.
it seems if the exports should not become
inconveniently large. Therefore, there seems
no reason 20 fear that the stock market will be
nipped by money squeezes. Speculation viii for
some time take direction from other forces than
the amount of Ioanable funds available
AS things must find bottom somewhere, this
foreign selling will eventually come to an end
The speculative holders Will be bailed out. and
such of the investment holdings as can be most
readily reached will also have been sold The
solid residuum will remain. not likely TO be
moved by anything which now appears on the
horizon OF course 1t will be said-ft IS said
every day-that If the Transvaal war were over.
or If there were important British victories. the
whole situation would change at Once-Europe
would stop selling and become a buyer. and
everything would be booming again Possibly.
but this war is going to last long time No
end can be seen of 1t this year It Is going to
be such a hammering contest as was the Civil
Warwick was entered upor on both sides
without the ----4Otest idea OF the gigantic pro-
portions to " 1ich1t-Yas destined to grow Moth
ing but the temporary fluctuations or the mar
ket which come from the varying successes or
defeats of either side will be seen, until sur
hcient length of time has elapsed TO make 1t
plain to the world what the end is 10 be, and
approximately when that end will be reached
What the war is doing now is to cause selling
When that stops from exhaustion OF material.
there will be the usual interval Of dizziness be-
fore the buying back begins
This applies to the foreign markets. our own
conditions present cause for uneaslnesS, Ousl-
ness throughout the country being all that could
be desired. The carrying out Of long matured
plans for consolidating the position OF the great
trunk line systems would. under more propitious
circumstances, be IN itself sufficient TO create
respectable bull market. What these plans are
will soon be known in detail; at this time only
the general outlines appear. The consolidation
of interests by the union OF the smaller roads OF
the middle West with the big systems TO which
they each bear closest relation. will so eliminate
disturbing factors to extent never before pos
sibIe The New York Central will have q terri
tory over which IL will be absolute; the Penn
sylvania will have its territory equally under
control: the Baltimore & Ohio Will work with
the Pennsylvania. unity Of interest having been
secured through recent large stock purchases
The Chesapeake & Ohio. and the three Cs sys-
tenn will be united with these: not necessarily
by consolidation but by stock holdings Smaller
roads like the Lake Erie and Western. have
already been taken IN. The only road IN this
territory which apparently is not yet provided
for is the wabash 1t stands between the big
systems and occupies important strategic
position. The Goulds in control there So
far. nothing has come out to show their attitude
towards the combination.
The purpose OF this great union Of interests. In
which the New York Central and the Pennsyl-
vania will be the dominant factors. is to secure
stability Of rates. If in addition fractional in
crease in the rate per ton mile can be secured
and maintained. an important increase in the
net earnings of all the roads must inevitably
follow.
1t is stated that announcements in respect to
the c. & o. and the three Css. viii be made
within ten days. When all the plans referred to
are carried OUT Mr. W. X. Vanderbilt will, II Is
understood. go abroad for extended trip.
The annual meeting OF the Brooklyn Rapid
Transit Company takes place on Wednesday.
when II is expected there will be some changes
in the Board of Directors. There will be much
interest felt in the report which President ROs-
sitter win make on the status of the property.
The Federal Steel dividends viii be declared
on Tuesday. In respect TO the Steel Wire Com