The times. [volume] (Washington [D.C.]) 1897-1901, 1901-03-27

much as they had lost in the entire ses-
sion. Burlington and Northern Pacific
spurted in a wonderful way. the former
more than 4 points and the latter more
than points from the low prices of the
day The close was at the top level. and
apparently there was still a large demand
for these and many other securities I'M
filed.
The meaning of this quick change of
tone was the subject of much gossip in
the street at the close and during the
evening. That ii is the result of work by
the most powerful people in the street
there can be no doubt. Mr.. Morgan and
Mr. Hill and their friends and their
brokers caused the rally at the close.
What their motive was and what are
their further intentions are matters much
more in doubt. One theory that has
much to support it is that the market is
very near the top and being held up by
these interests by main force until the
United States Steel Corporation has been
hoated. This theory does not necessarily
mean that prices will not go higher In
deed, the people that advance it say that
after the reaction OF Monday and yester-
DAY and the fright of the shorts yester-
day afternoon the insiders ought to be
able to push the level considerably higher
before the close Saturday. But If the
theory is the correct one it is probable
that in a very short time level win have
been reached beyond which there will be
no further advance at present, and from
which big decline is likely during April
The matters that bear on this situa-
ton, as has been said, are worthy of
careful consideration. IL is a fact that
the money situation in New York is not
cheerful. The banks are very close to
their minimum lawful limit of reserve.
Call loan rates are being held down arti-
ficially by the big financial people with
out doubt. There is no apparent rea-
son for this except that the insiders are
holding prices up with the best and all
of their immense resources. The discount
rate between New York and London is
such tnat gold would ordinarily be eX-
ported, but no gold goes out because Mr..
Morgan is preventing it artificially. He
could have no reason for doing this eX-
cept TO keep the market up. II may be
suggested that the large selling on the
first two days of the week was for the
purpose of reducing loans at the time
when this item will do the most good in
the next bank statement The same
stocks can be bought back later this
week and the money borrowed without
having much effect on the statement, I'M
der the present system of averages used
in making up the statement The banks
have lost nearly &,ovJ,uU In cash to the
Sub-Trcasury, and no gold is coming in
from the interior to offset it. With a
reduction in loans and few dray loads
Of gold hauled from the trust company
vaults to the banks tomorrow at the
close Of business, or on Friday morning.
it is probable that the statement could
be made to show up eXcellently on Satur-
The disposition among market people
generally at the close was to believe that
there will be higher prices this morning
I and further advance before the end of
the week. Some people took the view
outlined above that the insiders are
manipulating the market TO the best of
their ability, and that a reaction is not
far away. Others considered the rally
yeste rday afternoon simply an orderly re.
! sumption of the boom after two davs Of
profit taking. The latter market critics
expressed the opinion that the boom is
really only beginning.
The startling advapce in Burlington and
Northern Pacific seems to suggest that
this movement in particular was en-
gineered 10y the leaders of tine market as
an easy way Of turning street sentiment
/ to the rosy view again. The story that
was fioated when the move in these Sc
curities was well under way was the old
one that the Burlington is to be leased
by the Northern Pacific. or rather by
that system and the Great Northern. One
version Of the story was that the stock
holders are TO be guaranteed a per cent
dividend. Another was that the Burling-
ton stock is To be retired and replaced
by an issue Of 3l4 per cent bonds to he
guaranteed by the two systems above
mentioned. II was said that these bonds
would be given at the rate of 20 for 100
shares Of stock, or, supposing the bond
10 sell Tor par, AT the rate of 500 per
share for the stock. No confirmation of
any Of these rumors could be had except
the boom in the stocks. Burlington went
up TO l6s. exactly the top price reached
| by ii a few days ago. The price at The
close on Monday night was 1863, so that the
advance was five points Northern Pa
cinc advanced from a low price of S6iL
for the day TO 9l2i, or five and one-fourtb
points. These movements practically &c
CURED in less than an hour. as AT >
O'Clock the prices were near the low for
the day.
IT has been considered extremely prob,-
bic for some time that the Burlington was
being absorbed by "A coterie of nn,,,,', r. =