The San Francisco call., 1901-10-27


loans and contraction of note issues of about
equaI amounts, but sterling exchange declined
In Berlin again to-day, indicating continued
pressure. OF gold there. There remains some
requirements to be filled at New York for re-
tions to the issue of consols an installment on
which is due November 7. The question of
gold exports from New York next week is
therefore an open one.
After falling into lethargic condition early
in the week. the stock market developed a de-
gree OF activity and strength later. The buy
inc, which was responsible for this advance.
was large and concentrated in its source and
eongested in a few stocks. shifting from day
to day from one group to another.
The movement was initiated in the Chicago
and Northwestern stocks. shifting thence into
me Nanderbilts generally. then into St. Paul,
Inion and Southern Pacific and then into the
coalers The industriais and specialties have
moved independently, as is usual in periods of
irregularity in the general market A notable
feature of the market was the evident pre-
dominating professional character of the opera
tions- Commission houses which usually
operate on orders from the general speculative
pubic have been conspicuously in the back
usually employed by the great financial inter-
ests in the street have executed large orders
informed public confused as to whether those
interests are committed to the long or short
side of the market
Doubt and uncertainty in fact are still the
prevailing sentiment in speculative circles
Some of the buying has been attributed to
progress toward e settlement of the Northern
stocks Tor that reason ii is on information of
which the public is kept in ignorance. The
controversy so far from settlement as to prom
ise prolonged period of negotiation, even
with the best intentions for hnal peace of
the parties in interest. That negotiations are
in actual progress is clear, but it is also clear
that these negotiations are now first under
taken on subject which Wall street assumed
was definitely settled when Mr.. Morgan an
nounced the members he had chosen to balance
the Northern Pacific board of directors The
N aIith ify of
President Hill of the Great Northern and of
the Hartman -Kuhn-L Loeb interests clearly
show divergent views and the holding to them
with determination AS contrasted with Mr.
Morgan's expressed conviction that the North
elements to assure settlement fair and salts
factory to all interests. President HiII's
Joint guarantor of the Burlington purchase
bonds is to be a factor in the settlement as
well as the contending interests among the
The Hill interests have insisted upon their
contention that Northern Pacific preferred is
10 he retired in accordance with the power
vested in the company under the reorganiza-
tion plan. The effect of this would be to oust
the Hartman nj Kuhn-Loeb interests from their
control. which is through preferred stock hold
ings, and leave the Morgan-Hll majority OF
the common stock in control of the company.
The Union Pacific party is equally insstent
that their control of the disputed property is
not to be relinquished. The recent buying of
by this party. 1t is admitted that numerous
legal and technical obstacles exist to the ad-
lustnent OF ownership OF a railroad company
by competing parallel lines. In its bare
outlines it seems clear. therefore, that many
difficulties still exist in this puzzling problem.
Until they definitely cleared up a depress-
ing factor will overhang the stock market I'm
portance is attached TO the money disturbance
in foreign markets as bearing on the large
foreign credits which have been used to carry
the large holdings of Northern Pacific ever
since the lookup In May. Repayments of these
credits have continued to sustain the foreign
exchange market this week, as for some time
past The course Of the loan account of New
York banks show that this burden is shifted
upon domestic credit institutions. waiting upon
the Northern Pacific settlement for relief The
usual fall inflow of gold to this country is
thereby interrupted, except as the Australian
remittances can be substituted. The calling
home of French credits seems to be for the
purpose of meeting heavy losses incurred by
French capital by over-inVestment in Russian
industrials.
The Economists Francois estimates that the
shrinkage in valuation of Russian enterprises
in two years is not less than so per cent
which would represent losses to French in
vestors and Spectators of 800. ooo. 900. The
long process of liquidation in Germany also
continues. following the collapse from specu
lative imitation. The maturity OF obligation at
the years end in those two countries and
Great Britain's continued necessities for the
indicate strained period at that time. which
is likely to be reflected over the whole ffnan-
cal world. AS to immediate money conditions
in New York the Government surplus is max
ing renewed demands upon the market
that Government bond redemptions .5 der aDt ms have
gold this week having failed to offset this
drain.
Railroad bonds have been in improved de-
mand at advancing prices.
United States refunding 2s declined u and
old As u per cent. The IS advanced u above
last weeks closing call