El Paso daily herald. (El Paso, Tex.) 1881-1901, 1901-02-13

Special Service to The Herald.
NEW YORK. Feb. 9. 19O1.-Wal
street still excites surprise by the con
tinuance of it's extraordinary specula
tive boom. The market is almost un.
precedented in the persistency of its
activity and firmness. Its elasticity is
entirely in an upward direction. and
naturally nobody cares to take profits
so long as prices keep advancing. Last
week the daily transactions in stocks
fell from a maximum of 1000, 900 shares
to minimum of 100000 shares. and
yet without any corresponding fall in
price; in the past week the daily sales
have bounded back to 100000 shares.
but with mo such rise in values as
might be expected from such an in
crease in buying. The movement is
wholly abnormal. There is no explain
ing it by the ordinary rules of specu-
lation; it is plainly under the direc-
ton of special influences of absolutely
controlling force, which nobody has the
courage to oppose; whilst holders gen.
orally are ready to follow to any
lengths.
The explanation is in the fact that
financial giants are in the field. per-
forming unexpected feats of consolida-
ton among leading corporations. What
has already been accomplished, or is
in process of achievement. aggregates
several hundred millions of capital.
Those operations may be considered
as having already had much of their
stimulating effect on the general mark
ct. but no reactionary tendency is dis
tinctly apparent. There remains the
question whether other similar deals
may not be waiting their turn. Each
day brings it's rumor of other schemes;
and it is not unlikely that there may
be some basis of truth in the reports.
There are plenty of railroads which
present as good case for cooperative
alliances as those which are now be-
ing put through one or another form
of consolidation: and what is now be-
ing accomplished will naturally have
tendency to force competing lines or
routes to adopt similar arrangements.
Railroad capitalists appear to quite
generally favor the principle of these
Establishments. as the most effective
method of controlling railroad compe-
tition yet introduced; and there ap-
pears to be some considerable probable
ity that We may prove to be in the be-
ginnings of a movement that will ere
long revolutionize the relations be-
tween the units of our entire railroad
system. With what speed the change |
may be expected to travel is, however. |
a matter too uncertain to speculate |
upon. Whatever may be the impress |
sion produced by the important deals |
now in process. such transactions re- |
quire much reconsideration and nego- |
tiation. for which time has to be al |
lowed. While, therefore, there may
be certain arrangements pending which |
will develop further deals. before the
present excitement abates. yet it is
doubtful whether these operations can
be carried much farther at present
without inducing an excitement that
would break up in violent reaction on
the stock market.
1t is not to be concealed that the
present firmness of the market at a
very high range of prices is abnormal
md largely fictional. But for the op-
,rations of our strongest financiers in
hese celebrating deals. the market (
would be now careering back {
owards normal level of values; and