The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1901-04-14


! 1861. The high point was the record
! price 70 rthe stock under the present cap
| italization and the fact that the stock
crossed St Paul was also made the sub
/ jet of interested comment. The bank
statement was interpreted as favorable
/ owing TO the rise IN the surplus but the
I decline in the reserves proved eonsidera-
/ bly, larger than anticipated and the dras-
! tic loan contraction of sl3. $3.50 was all
/ that saved the surplus from further de-
pletion. The bulls elzed out the effect of
the increase in the surplus by rumors of
measures TO be taken by syndicate Dor
rowers for the further relief OF the money
market and Of further large offerings 10
| be made to the secretary Of the treasure
of government bonds at figures which he
would accept. There was nevertheless
an active selling movement TO take profits
on the advance and the closing was irreg-
ular and below the best al around. The
stock market has been feverish and ner-
vous at times during the past week and
the selling pressure has overborne the
demand several times resulting in sharp
reactions. On Manday when trading was
resumed after the three days holiday
the market took on an appearance re
sembling decentralization and prices crum-
bled in a way TO alarm the long wasted
bulls and in fact cost them large profits
by wiping out margins and forcing them
to liquidate to stop losses. The powerful
speculative pools which have long ruled
with a strong hand seemed 10 have lost
control completely. Blu the later events
of the week gave ground for the suspic-
ion that the furry on Monday had been
in the nature IA shaking out Of weak
holdings which constitute an overhanging
threat to advance. These weak holders
were the buyers Of last week, to whom
the professional pools sold stocks in the
period Of excited speculation and were
thus in a condition to see a reaction in
prices with coTaplaceny. That they were
willing 70 buy stocks at a lower level.
that their resources for supporting the
market and manipulating prices We're not
exhausted and that --ese manipulated
advances had lost none Of their power
to attract, excited outside buying was
abundantly demonstrated by the later
events Of the week. Record prices were
made for some Of the most important
stocks in the list, including Burlington.
Nortekern Pacific, Erie, the Northwest
ern stocks. Texas and Pacific, the Atch-
isons. Amalgamated Copper, General
Electric and some others It has long
been evident that the upward price move
ment is not at all governed by news.
Neither last week nor this week has
there been any news bearing upon the
stocks most affected beyond the constant.
reiteration of already discounted and
threshed out rumors. The Burlington
deal" the Southwestern railroad mer-
ger, the consolidation Of copper interests
and other unconfirmed and in some cases
contradicted assertions have formed the
stock in trade Of the bulls as they have
for some time past. The good news
seems TO be all out for the present, and
it is a maxim with the trader in stocks
that thi smeans reaction. There are be
slides several unpropitious features in the
prospect. Chief of these is the money
outlook. With the resources Of New
York banks loaned almost up to the limit
of their reserves, there are several forces
Of depletion at work on the reserves
themselves. The interior centers are
making their seasonable demands upon
New York for cash. The taking up of
the governments large surplus revenues
is drawing money constantly out Of New
York banks and into the sub-treasury.
The outgo of gold from the country has
been suspended this week, owing con
joint to the tighter money market in New
York and the easing OF the London
money market by the disbursement there
Of government dividends, but it remains
TO be seen whether the preparation for
the taking up of the new issue of con-
soils, which is expected in the latter part
Of the month viii not renew the pressure
upon New York for gold. Then the sea
son Of crop uncertainties is approaching
and the effect OF the first government re-
port on the condition of the new crop
calls attention to the speculative dangers
inherent in this important subject. Wheat
advanced and the Changers declined on
the report Notwithstanding the high av-
erage of condition reported. the specula-
tors showing nervousness over the evil
dence of insect damage But Wall Street
has sapient saying that the way TO
bull stock is to buy it."
The action Of the market seems to bear
out the faith Of the speculative leaders
that so long as they can command re-
sources to buy a stock up TO a sharply
higher price. the country viii furnish
buyers to take it of their hands al a
profit. The impression prevails in Wall
Street how justly there IS no way of
course to find out that the speculative /
coterie which has led the recent advance
has the countenance and support of the /
banking and financial interests which
have been prominent IN the great fnan-
cial projects recently consummated. The j
purchase Of controlling interests in other /
properties has been often supplemented 1
by an issue Of collateral trust bonds 10 /
supply the purchase money. II IS In the 1
course of business that the bankers and .
syndicates who subscribed for these Sc /
curities should market them. Their price /
IS affected by the market price Of the 1
stock which forms their collateral secur-
lty which gives the bankers and syndi- /
Gates en- interest IN the market price Of I
the stocks. The profits Of the underwent I
ing syndicate OF the United States steel /
corporation accrue first in the form II 4
the shares remaining after the various /
exchanges under the plan are Effected +
This is the ground for the surposition in 4
Wall Street that elaborate provision has 1
been made for the support ~ these stocks
IN the market backed by the resources of +
the syndicates Ii must be remembered /
that large amount az the loans out /
standing OF the New York banks ard I
who are intimately acguaint- /
81 with the affairs Of the money market /
and prospects movements 81 IT, The pos
sible effect upon Interest rates ~ the
manner ana time of Equi1atlnr these
large loans is obvious The spectators
rake much Of the proposed plans and de-
examinations OF large capitalists O. suarl /
the stock speculation from serious harm