The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-11-25
ACTIVITY in SPECULATION
iii MOST SALIENT FEATURE IN
SATURDAYS SHARE MARKET.
Movements of Day and Speculative
Sentiment of the Week-Improved
Monetary Conditions.

NEw YORK, Nov. 23.-Speculative activ-
ity was very great in to-day's short ses-
sion Of the Stock Exchange and manipu-
lative devices were freely used both by the
bulls and the bears. The consequence was
a feverish and excitable market. There
was a notable accumulation of New York
Central, Norfolk & Western and the
Southern Railway stocks, individual trans
actions in these running from 1000 to
$500 shares. New York Central was lifted
"a; Norfolk & Western, 1A. and Southern
Railway preferred, rs. There was a dis
position to take profits in some of the
recent favorites which had an unsettling
influence on the market from the outset.
Michigan Central jumped twenty points on
the purchase of 100 shares. The Buffalo,
Rochester & PtttSburg stocks and Mimi
eapOiis, st. Pau & Sault Ste. Marie pre-
ferred, rose 212 and ga. Amalgamated Cop
per was weak throughout with the eXcep-
ton Of a slight fractional gain at the open
ing. In the late dealings the stock slumped
10 50, which IS a fraction below the low-
est price ever previously touched. This
weakness took the edge off the rally on the
strong bank statement and made the clos
ing very irregular. Renewed selling de-
veloped at the last in the transcontinental
stocks also. The cash reserves of the
banks increased about as foreshadOWed
and the heavy loan contraction of $l3, 5O4,-
400 confirmed the belief that the gold ex-
ports Of the week went to liquidate for
eign loans. 1t is asserted that the break
in exchange is partly due to renewed sell
ing by bankers in the process or extend
ing foreign loans still maturing, when
amounts to the creation of a fresh sup
ply OF short accounts IN exchange 10 De
covered at later maturities.
There was extraordinary irregularity In
the stock market during the week, leaning
TO the side of depression in the earlier
part, but giving place TO strength ana
animation after the middle of the week.
In the comparative dullnes of the earlier
part of the week the speculative senti-
ment on the general outlook was vague and
conflicting, and the only movements OF any
Importance were based on causes individual
to the stocks affected. As a consequence
prices Of different stocks were often NOV
ing strongly in opposite directions. Inc
~contending factors were, on the side OF
depression, the uncertain money outlook,
due to the heavy requirements or foreign
money markets for our gold and the agita-
ton set on foot in the Northwestern States
against the purposes OF the Northern Sc
curities Company. So much has been made
of the formation of this company as an
argument for higher prices and the stocks
affected directly and indirectly by II nave
been advanced to so high a point that the
prospect of legislative opposition was
bound TO be considered in the speculative
operations. Protestations of determination
to maintain the separate organization or
the railroads brought under the ownership
of the one ompan did not prevent a per-
sistent dropping of the prices or transcon-
tinental stocks.
The export on Tuesday to France and
Germany of upwards of 100000 in gold,
the largest amount ever exported from mere
in a single day, kept attention focused
upon the unprecedented condition In the
foreign exchange market and offered no
relief to the anxiety as to how far the
obscure causes at work might continue.
The fact that the money market has been
! only moderately affected thus far was not
| convincing as TO the future. The extern
sive resources of the domestic money mar
ket are illustrated by the constant recuper-
alton against the losses of the gold out
flow. Although this outflow is abnormal
at the season of heaviest merchandise eX-
ports and mus be to a large extent un-
forseen, 1t is partly made good by the
constant inflow OF Australian gold at the
Pacific coast. This countrys own produc-
ton of gold at the rate Of over $7,OOO,OOO
per month is also a part of the account
and must 90 to explain the facility with
which the needs of European countries for
the metal are supplied. The option Of
fered by the Treasury Department for re-
demption of government bonds also is a
safety valve against money stringency, al
though the effect of these redemptfonS is
modified by the fact that some OF the
bonds offered for redemption are with
drawn from the treasury, where they were
deposited to secure circulation, thus oper-
ating to retire that much circulation. The
relaxation of the tension in the foreign eX-
change market In the latter partaoI the
week has been an important influence in
relieving fears of money ~stringency and
reviving speculative confidence in the stock
market.
The considerations which have served to
offset the doubtful factors in the stock
market have to do with the extraordinary
trade activity and prosperity of the coun-
try as reflected in the record consumption
OF pig iron in attempts to keep up with
current orders, heavy volume of bank
clearings and a volume of traffic in all lines
never equaled and beyond the capacity of
railroads to meet, In spite of the great
increase of equipment and carrying ca
pacity in tha immediate past. Supple
mentary influences are found in rumors
of financial projects looking to the con-
solidatfon of minor Vanderbilt lines, extra
distributions by the subsidiary lines of the
New York Central system and of an in
tended merger of New York city traction
lines by means Of a security-holding COM
p6ny.
The railroad bond market has been mod
erately active during the week, and in
vestment issues have shown a firm tone.
Speculative bonds have been irregular.
United states threes registered, the old and
new tours and the fives advanced Is per
| cent. over the closing call of last week.
The ~refunding twos declined 80.
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