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

part Of the week and the extent and reasons for
some OF the advances made. the market came
through the test we'll The momentary chill shat
came when the statement first appeared seemed
70 pass, but fever fit on when the market
closed, and the fluctuations were wild and
Gus pressure by the bears and eager support by
the powerful bull cliqpes. frantic unloading
OF weak speculative holders and nervous covering
Tor quick turn by shorts
The earlier market showed very mixed condi-
an o, Dut inc eager demand for stock rose above
On prices by realizing. which heavy
scale Pacific Mail jumped nearly ten points by
half-potnt intervals the announcement OF the
entry OF Union Pacific Interests into the IL
Iectory. and Union Pacific also notably af-
iected The steel stocks showed wide and ex-
cited fluctuations a continuance of the heavy
speculation In those securities. American Hoop.
lin Plate and Tennessee Coal were most con-
spicuous. and were marked up three points CT
over When the market relapsed these stocks
and other prominent in,.usrials end specialties
were most affected. losirg in some cases between
Two ana three points, partly recovering before
the close The CONSERVATION manifested among
SPECTATORS over the showing Of the bank state
ment was due either to foolish blundering or 10
reckless missatement. Fridays preliminary
ngures from the bank statement clearly sndt-
Gated a loss In cash. though not as large as tie
Sf0l5,200 actually reported Saturday. The
tent OF this decline will inevitably lead to dis
cCsslon as TO whether cash was withdrawn and
noarded over election. The loan item seems also
70 reflect the precautionary loan contraction OF
sionoay, rather than the later liberal policy re-
Elected In the money rates on the Stock Ex-
change.
The speculative world is so accustomed 20
paradoxes that 1t was taken somewhat by
Prise by the logical rise in prices Of stocks which
ioHcwed the election. The whole OF the specu-
lative life I'm Wall street consists OF efforts 10
anticipate future events and conditions. Thus
Tor stocks prompts large buying, and when the
event takes place which has been looked to 10
cause the demand professional spectators are
eager sellers, not only OF all their holdings but
OF short contracts well. IL is almost invara-
piy the case that events are cverdiscounted.
Hence the prevalence CT the paradox In Wall
street. Buy In a weak marke. and sell on coed
news are standard maxims there II is rarely
the case that Wall street fails to sufficiently
ulscount an event or condition, especially a
condition which has oeen so confidently expected
as the large public demand TO- stocks which
was TO spring up after election, but that is just
what happened this week. Wednesdays market
quickly showed the effect OF the enormous selling
10 realize by the powerful operators who mad
been accommodating long stocks for several weeks
IN anticipation OF the after-election demand.
The concentration of stocks in strong hands.
coupled with the frantic eagerness 10 buy. made
IL possible TO establish imposing advance in
price at the outset. Not only were holders Of
iorg stock induced to realize, but bear operators
amos. immediately began to put out short
INES, confident that the golden moment OF the
elimination Of rise had arrived. But The tor
rent or the general demand swept up all the
offerings in the market and continued of suf-
hcient force to afford a medium for continued
operations for an advance during the rest OF the
week, stimulated by all the arts OF manipulation
Aho"h 10 the professional Spectator.
PERMANENT EFFECT.
The present health OF the market as a result
Of the weeks movements, can only be deter
mined when something more becomes known of
the character OF the buying There has been
large investment buying as n matter of course.
coming from interests acting on positive and
accurate knowledge OF the properties whose
shares they sought to possess, and who held of
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 from a conviction that a
higher level of prices IS warranted by the grow
ing certainty OF sustained business prosperity
and partly, no doubt in connection with plans
for financial and administrative changes in great
corporations. involving increased economy Of
operations and consultations and combinations
IEere can be no question OF the Increased health
brought 10 the market by this class of buying
which satisfied substantial and legitimate de-
mand and reduces the floating supply of stocks
sending them into investors boxes 10 be strongly
and confidently held. Such developments as the
extra dividend disbursements by the Pennsyiva-
hla ana the Northern Pacific companies are ex
arnpies OF the substantial benefits which invite
puy ing or this class, only on the ground n,
the immediate money distribution concerned, brt
LOT the index afforded for confidence in the fl:.
ture earning power by conservative and CONNIE
tent authorities. But the purely speculative
buying or stocks, which was attracted by tbs
passing of the election, was on an enormous
scale from all quarters OF the country.
Last weeks conditions In the money market
constrained and reprasscd much speculation thai
was eager to embark. but the event proved thai
the money market conditions were themselye,
cue 10 Precautionary sn.iments rather than Il
any actuai scarcity OF funds. After loaning al
! 70 per cent. on Monday, and with an absorbirs
demand for money for speculative purposes or
| wednesday. the rate nevertheless fell TO I ne,
| cent on that day. The stock market demauf
| for money has been freely suupied all week anI
the low rates Tor money have been thernselve.
MI att II
pected OF increased business activity actually re-
suits IL is question whether SPECTATORS will
hot overrun the available resources of the none,
iEaIket ahc run into the embarrassment OF q
money squeeze. Some Of the plans of capitalist,
Mhlch nave waited on the election have in
VOWED further lending o. money in the form al
government loan investments thus ahsorhins
portions OF the eountrys available credits II
the hurly-burly OF speculative excttment - =,
! inevitable that the advance in prices srfac+a,
all classes or stocks, good. bad ana indifferent
ana spectators gain i'm recklessness on an Adj
| vance when the very time is approaching TO war
rant caution. The most reckless and uninforn,o,
| buying comes from those with no other nnrn1s,
man 10 sell at higher prices, and who will b,
Forced to sell. in the event of a reaction To re
| pay borrowed money. Having bought IN ON,
group OF stocks, they employ the profit show
ON paper Dy me advance In price TO buy in an
other group thus building inverted pyramid
| BuyIng or this character detracts from IN,
| equilibrium of the market, which grows NOR,
| unstable with every new advance in price in
/ wiling to sudden and violent collapse Fre1uen
digestion OF profits is the only safeguard a1sIns
I CatastrOphe In such market. and the nc-t
| p"nement or reaction is not for the health of m
| market. % -"
/ The large demand for railroad bonds affords
| better index or the substantial character of tn
| buying than that for stocks. United States pcy
| Tours advanced 2s the refundng twos who,
| issued. and old tours s. and the threes and fi,s
= per cent. over the ruling call price OF a weel
| ago - - "ee'
Following are Saturdays share sales ard th
| closing bid quotations. ~
| c,ool Closn
| ,sNs Sales Bid
| <NtShiScH ..
| Atchison pref ................. n oeo % 30
| i