The times., 1901-05-16

present the outlook is for some further
gain. Later on any good bulge il is
probable that many securities that have
been unduly inflated will be sales. The
readjustment period has arrived, and
stocks during the coming two months
will be likely more and more nearly to
approximate actual values.
The Northern Pacific matter is particu-
larly interesting, because at present 1t
seems to have removed one grave impedi-
ment from the way of any permanent re-
covery of prices. As long as there was
fight between two such important inter
ests as the Hartman and the Morgan
hin contingents. IT could not be hoped
that any of the big plans recently inaug-
uTated could be carried out, and II could
not be hoped that the public or the
ciiqueS would show any great enthusiasm
in buying stocks. With the two forces
harmonious however, the situation is
completely changed. The community OF
interest plan is not shown to be a dream.
Il looks quite as feasible as ever. Even
it seems to have been tried and proven IN
the recent struggle, for only the utmost
anxiety to have harmonious relations for
the carrying out of the big plans would
have made either of the two giants of
railway strategy give in to the other. Mr..
Hill and Mr.. Morgan have been success
ful Mr.. Morgans prestige is stu uudlm-
med. II is probably even greater in the
fore this fight Mr. Hartman, however,
has proven himself TO he very big and
very resourcefuI man. and it is probable
that he has demonstrated to Mr. Morgan
his fitness to be admitted to the inner
coterie
News, aside from the announcement of
the settlement of the Northern Pacific
matter, was not important yesterday. ii
was stated during the day that two con-
siderable sums of gold had been engaged
for shipment today. This continued ship
ment of gold to Europe is in itself, and as
an index, one of the matters that threaten
any further large advance in prices dur
ing the present summer. II the boom is
over in the general market, as some peo-
pie believe il is declines will be due large
~ TO the selling of American securities
by Europe and to the shipment of gold
from this country II is said by some Of
the best posted financial houses that fu-
rome has been frightened by the recent
panic in American stocks and is likely
10 begin selling out on large scale at
any tine. The bank statement this week
is not likely 10 be very good one. Gold
is going out. and it is not in the least
certain that the loan account Will show
the contraction that many look for.
There is one other matter that is caus-
ing much thought among thoughtful peo-
pie amid al of the talk of continued
prosperity and brilliant outlook. The rail
ways are making a magnificent showing
and the community OF interest plan Is
still a thing of beauty. But the new in
dustrial proposition still remains to be
solved. Mr.. Morgan may have fair sail
ing for his billion and a half dollar cor
poration and the lesser trusts may follow
in the wake of the king trust without any
break: but there is certainly a possibility
of rocks ahead. The much maligned Rus
sell Sage, whose prediction regarding the
market came true in such startling way
last week has another prediction on file.
In the current North American Review
he calls attention to what he considers
the very insecure position OF the market
in industrials He says that factories
which were worth $50 900 a year or two
ago are not worth $4,000 now simply be-
cause paper has been issued to that eX-
tent. He believes there viii be shrinkage.
While lenders Of money may be willing at
present to take industrials TO the extent
of $4,000 on a $4,000 factory, they will be
loath to do so later when they have their
choice between these watered industrials
and the many new issues Of railway bonds
and stocks This factor may in itself
alone cause the day of reckoning.
The worst breaks of the day were in
the Morgan-Hill securities and in the Har-
riman stocks. AT tne same time these
recovery in the last hour. 1t is a very
unusual thing for stocks to decline five to
ten points in the morning and then to
recover the entire loss in the afternoon,
but that was what occurred in some Of
tFes Sc stocks. Union Pacific, for instance,
went off from los at the opening to 95lz.
and then recovered to 1857, the top price
for the day. Southern Pacific declined
from a. to 4l&s, and then advanced to
4els at the close. the best price of the
session Burlington declined only frac-
tioT ally from the opening. l90, and dur
ing the afternoon it advanced to the
best recent price, l9i. closing at the top.
Northern Pacific went off five points TO
14U but here were only one or two trans
actions in il, and these cannot be sup
posed 70 show anything in particular. The
Erie securities broke, the common three
points. but they recovered all their losses
and closed at the top. There seems to
be little doubt that this recovery was
due to relief over the end of the North
ern Pacific fight. The entire group is sell
ing fairly high, however. with the pos
sihIe exception of the Eries and con-
servative people VIII not be disposed to
buy any of them except on the reac-
tions.