The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-11-17
The WEEKS SPECULATION
REFLECTED IN ONLY SMALL DEGREE
THE WEEKS EVENTS.
Settlement of Northern Pacific Dis
pute Had Been Fully Discounted
Improved Monetary Conditions.

tlnued speculation Tor the rise to-day, IOl-
lowing yesterdays recovery from yester-
days realizing movement. but the advance
was interrupted by realizing her and there
and the buying was congested in a few
stocks. There was large and concentrated
buying OF the Readings, accompanied by
rumors that the company is soon to bene-
1T by an increased dividend on it's holdings
Of New Jersey Central stock. There was
sympathetic strength in other coalers, in
Guiding some of the soft coal carriers.
American locomotive stocks were in con-
siderable demand on reports of large orders
from all parts Of the country. The trans
continental railroad stocks moved irregu-
lerly under realizing from time to time
and there was a sharp setback for the local
fractions. Sugar, Amalgamated Copper and
Peoples Gas, which unsettled the late deal
Ing and made the closing irregular. Much
stress was laid by bullish traders on per-
sistent rumcrs that an offer of a large
block Of government bonds is pending. 1t
was also rumored that the secretary Of the
treasury was about to raise the bid price
for government bonds. No substantial basis
could be discovered for either rumor. The
gain in cash reserves by the banks, In spite
Oh the large gold exports, was a more mate
rial ground for confidence over the money
outlook. The announcement just before the
close OF an engagement OF $500 900 for export
next Tuesday, by a Boston banking house,
upset a nope that the gold export move
ment might be checked. owing to the easier
tone or money and the rise in sterling ex-
change at continental points.
The details Of the plan Of settlement OF
the disputed questions Of control in tho
railroad world have been
eagerly anticipated for several weeks past,
1 and mis- SpTflAmanf haG haan the Cffrarrlaf-
Ing cause OF the upward course Of prices Of
STOCKS during all that period. Yet, when
the announcement OF the plan was made
TINS week prices OF securities promptly
turned downward and developed quite acute
weakness. This does not necessarily mean
that the previous buying Of stocks was
on false premises. Speculation naturally
does not wait for an event, but anticipates
1t as early as possible. The recent course
or prices shows that the terms of settle
ment of the Northern Pacific quarrel were
quite accurately anticipated and in their
essential details, they had been published.
In consequence, the actual announcement
attracted very few buyers of stocks be-
cause the buying had been done already.
Such part of the buying as had been done
with the desire of selling again at an adj
vance made large offerings for sale on
Thursday with d resulting break in prices.
Yet the Northern Pacific settlement Is
viewed with profound satisfaction through
out the financial world both here and
abroad. 1t is regarded as a defnitiye So
luton of problems that have been a menace
TO the stability OF values OF Northwestern
railroad securities for several years past.
So far as the public is yet informed only
the railroads immediate parties to the set
Element were considered. Except as the
general situation is bettered, no special
provisions have been made known for the
benefit OF ST. Paul and Atchison. AS for
the relative advantages of the railroads
which were parties to the quarrel the set
tlement accOrds TO the Union Pacific an
equal control of Burlington by representa-
ton on the directory, which was its orig
inal contention, and in addition a SubStan-
ton voice in the affairs of Northern Pa
cine and Great Northern by its holdings in
the new Northern Securities Company in
exchange for its holdings of Northern Pa
cifc common stock, which was not orig
inally commended for at all. The redemp-
ton at par of Northern Pacific preferred is
understood to yield a substantial proht to
Union Pacific, as its large holdings OF
Northern Pacific preferred were acquired.
according to common understanding, at
below par.
The growing construction of the money
supply in the market had very little in
huence on speculation previous TO the real
iZing on the Northern PACING settlement,
but emphasized the disposition TO sell after
the reaction set in, as bankers were call
ing loans and rates advanced. So far as
the domestic outlook is concerned, money
conditions have improved, the receipts of
currency from the interior tending 10 In
crease and the payments by the subtreas-
ury On account OF government pond re-
demptions and on account or gold de-
posted at Pacific coast points more than
offSetting the requirements of the gov
eminent surplus. But the outward move
ment Of gold TO Europe has proved so large
as to awaken anxiety. 1t is now well
understood that the gold exports are an
index Of the unsupported extent to which
foreign capital was borrowed in the pursuit
of the projects which stimulated the great
speculation of last spring. The govern
ment returns of foreign trade, showing a
decrease in the balance of trade in our
favor for OcOtber of $2S,5 Qb, explains why
the supply of commercial exchange has not
been sufficient to meet maturing require
mentS.
The market for railroad bonds has con-
tinued broad and active this week at ad-
vancing prices for the most part. United
States old fours advanced Is per cent. over
the closing bids of last week.
Following are Saturdays share sales and
the recorded price changes: