The Bemidji pioneer., 1901-05-16

IhurHdays Decline ReGOvereu
Their Former Level - Settlement
Effected with the shorts in
Northern Pacific Removed the
0yershadoving Fear From tho
Market Nv Clearing sheets OF All
Members OF the Exchange Went
| Through the Clearing House Per-
fect1y and 4 Feeling OF Relief
Was Immediately Manifested.
New York, May 12.--Rapid progress
was made in reestablishing conf ence
in Wall street yesterday and there was
| q natural rebound in prices. Large
progress was made toward wiping out
the net losses which remained Thurs
day night after the recovery had al
ready set in ON the exchange. On a
number of stocks which were not
acutely affected Thursday yesterdays
price arose above Wednesdays level,
and in Missouri Pacific Thursdays net
loss was recovered with three points to
spare, the extreme advance reaching
fifteen points. There was a, great deal
of trepidation still evident yesterday
morning owing to the vague dread that
I there might be stock exchange houses
/ which would be unable to meet their
obligations after Thursdays drastic ex-
perience. The market was, therefore,
unsettled and feyerish, even after the
strong opening, but when the official
announcement was made that the
clearing sheets of all the members Of
the stock exchange had gone through
the stock exchange clearing house per-
fectty and that all OF their checks had
been honored, a feeling Of relief was
manifested and steadily grew through
out the day. During the latter part Of
the day there was resumption OF
what looked like a speculative move-
ment for the rise, led by Union Pacific.
The buoyancy OF this stock and the
accompanying strength Of the South
westerns was
II based Upon Rumors
h and assumptions Of the benefits to ac-
crue to Union Pacific from change In
control OF the Northern Pacific, which
was still stoutly claimed by the Union
Pacific party and as stoutly denied by
the Hill-Morgan interests Undoubted-
~ there were very many speculative
losers Of great amounts in the collapse
of Thursday who retained their nerve
and determination and set about to re-
coup themselves by new speculation in
the market. Other buyers were those
who had gotten out early in Thursdays
slump and who still saw profit in get
ting back at the prices ruling yester-
day. This outcome Of affairs was pref
{ty well assured when the news was
learned yesterday morning Of the set
Element effected with the shorts in
Northern Pacific on the basis of $3.50
per share This removed the over
shadowing feara from the market and
the quotations for Northern Pacific on
the tape at $13o still further allayed the
for cash afterward, and the progress Of
the settlement with the shorts at the
offices Of the conflicting interests in
Northern Pacific prevented any further
disturbance on that ground. The
measures taken by the banks which
placed heavy loans in the market yes
terday and their decision not to call
the loces.s yesterday completed the
Traiqai1Iizing Instances.
The market closed strong at the top,
with "a feeling Of relief over to-day's
holiday. The gain extended in Union
Pacific to %; st. Paul and Lackawanna,
III 10; Consolidated Gas. Is; Burlington
and Amalgamated Copper, 21-2; In
ternational Power, IL IT,; Baltimore 6
Ohio, IL: ST. Louis Southwestern pfd.,
10 Ia; Sugar, Delaware & Hudson and
General Electric, 10, and representa-
tives of practically all the important
groups from S to 10.
Wall streets speculative bubble,
which has been in course of imitation for
weeks, was pricked this week and the
irridescent hues of stock gamblers
winnings disappeared with a pop In q
cloud of spray. Even SO soon as this
the fact energies that the vanishing
spray represents principally these spec
uIative winning while the solid sub
stratum of the country's profitable in
dustries. the high earning powers OF
the rehabilitated railroads and the
PROSPEROUS business and trade In all
branches is not appreciably affected.
AS In the case with all booms the coli
lapse was caused by an accident. This
was the corner IN Northern Pacific.
which has emerged from its mysteries
and stands disclosed to public view in
its principal facts and bearings. The
remarkable features of the
Collapse of Fictitious Values
is that it was precipitated by the very
operations upon which the boom was
largely based These were the plans
working out for consultations of rail-
way systems which stimulated dreams
of indefinite increase in values of rail-
way securities and furnished the great
incentive to the vast speculative buy
ing. The completeness of the collapse
seems to have thoroughly cleared the
market of the reckless speculative hold
ers and the market quickly realized
that the Generalization of Thursday
was as far from representing their true
values as were the inflated prices to
which the boom had carried them. The
measures taken by the banks to supply
the needed money and the settlement
of the Northern Pacific shorts quieted
the acute fears of holders of stocks and
a greater degree of confidence began
L -h 10. TD.aA q ~