The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-01-07

exchanges and ability to draw gold at will.
The hghtness of the outward movement OF
cotton from this country also keeps up the
rate OF sterling exchange.
While the selling for foreign account was
peing executed there was no disposition TO
keep prices above the London parity, and
pressure against some leading industria1s.
especially Sugar. was added. With the ces-
sation Of London selling and the appear
ance OF the bank statement there was an
Improvement in sentiment. Losses were
partly recovered and the closing was firm
on good volume of business. The fact
that the surplus reserve was maintained,
and even slightly increased. in face of the
gold export movement and loan expan-
sion OF $i,l0I,Oo, afforded much encourage
ment over the domestic money situation.
The stock market moved in an irregular
manner all week, and the motives of the
operations have not been by any means
clear, The confusion is largely due to the
fact that professional operators were clos
Ing up contracts to which they had COM
mitted themselves in expectation of the
weeks events. Such a movement naturally
tends TO nullify the influence of the actual
event when IL occurs. Thus one of the rules
In stock exchange speculation is TO buy in
anticipation of the early January demand
caused by released dividends and interest
and money seeking investment. The pre-
ceding weeks strength in stocks was due
largely 10 this anticipatory buying, and the
corollary of this buying would be selling
TO take profits last week when the dividend
one class OF professional spectators is
seeking to profit by the buying of what
Wall street affectionately regards as the
outside public. there is always another set
aiming TO make profit out of the first set
themselves.
ACTION AND REACTION.
Last weeks events show that very heavy
lines of short contracts were put out the
week before, on the theory that the antici-
FOR
have outrun the real demand last week.
and the attempts to realize would break
the market and offer opportunity to cover
at profit. This element had on their side
the argument that the recovery in prices
from the level of the December panic had
already outrun the usual rebound after
such disturbances. and that a reaction was
due from the selling of stocks bought in the
panic. The short sellers argued also that
the money market would not show immedi-
ate relief after Jan. ], and that the return
OF disbursements to the market would be
retarded, Such speculative commitments
must be taken into account to explain the
apparent contradictions in price movements
on news development This was attributed
TO Berlin account and was not fully ex-
planned. The Berlin money questions did
hot show condition of stringency suf-
hcfent to force large liquidation, and
alarming rumors of political complications
between Great Britain and Germany were
deprecated at official sources, but the home
demand for securities proved sufficient to
absorb offerings and sustain the level of
prices. The trunk line group was notably
strong, led by New York Central. Specula-
tive sentiment Is not very clearly formu-
lated as TO the prospect for values. Invest
ment considerations rule for the most part,
and buying orders of this character come in
on any reaction and serve as a support.
On any considerable advance in prices they
show falling off.
The high prices ruling throughout the in
dustrial and commercial world causes some
questioning in Wall street, where the recent
sharp lesson from the consequences Of price
imitation has been taken to heart. The
growth of the proportions of operating ex-
penses of railroads by reason of high priced
material in the monthly returns published
is impressive. The effects to ensue from
the advances in railroad rates now going
into force on the volume of railroad traffic
will be keenly studied in the light of COM
plants by shipping interests. The well-filled
order books in the department of the iron
industry give confidence in the existence
of continued prosperous conditions, but the
future demonstrations of the possibility of
profitable consumption of high priced pri-
mary products is awaited as an index of the
duration of the period of prosperity.
The bond market has been less active
than stocks, the level of prices on present
returns offering fewer attractions than in
stocks. United States threes, old fours, new
tours and fives advanced 4 in the bid price
Following are Saturdays share sales and
the closing bid prices: