New-York tribune., 1901-04-06
A BOOMING STOCK MARKET
crRENGTH OF THE UNDERLYING CON
DITIONS
-,-r1I-ENCE OF THE NEW POLICY OF CON.
sOLIDATION AND COMMUNITY
OF OWNERSHIP

More and more closely. the days and the
lacks go by, the course of the stock market IS
hsorbng the interest Of the American people
:, interest not centred upon the continuous and
,nprecedented appreciation of values, but d-
,eced largely also to the vast plans OF Industrial
Elimination and development which are being
,-orked out by the bold and resourceful fnan-
,,e-s who the dominating forces of Wall
c.rset These plans are recognized TO be based
,,on and made possible by reason of two under
wing conditions, one the instant and complete
.storarion of public confidence resulting from
ha reelection of President Mckinley last No
,enber. with its collateral assurance of pres
.-,ation Of the gold standard and the national
.aait. and the other the continued and abun-
aont Weld Of the products of the soil during the
last few years.
With these faVoring conditions I'm combina-
.ion the earnings of manufacturing and trans
o-tation corporations have been steadily in
creasing and the volume OF exports has as
e-eadily expanded, with slight recession dur
4np the last month so; and the wealth Of the
,ountry has been swelled enormously Europe
,s 1ooking westward for her loans. and Germany
and England and Russia have placed bonds
bere While large sums have been invested in
.bese securities. they represent only relatively
.nau part OF The free capital of the United
ana so the American investors con-
Ared themselves largely to American enter
-isss and American securities. In the past a
-svival Of business has been accompanied by an
,+snsifcation of competition, diminishing and
snsly CELEBRATING profit.
Rut a new era has come. the era of com
Il -rn+v Of interest whereby il is hoped TO avoid
H ,inous price cutting and to avert the destruc
,on which has in the past. when business de-
-ssson occurred overtaken so many of the
cornpeting concerns in every branch Of industry
4 In the great iron and steel industry, for exam
-ls which. as Andrew Carnegie has said, has
teen The prince and the pauper Of the industrial
rorld. now highly prosperous and again deeply
5su-essed. consultations Of scores of scattered
concerns into dozen larger ones within the last
4 .To years have now been followed by the COM
| hnstion Of the latter into the most gigantic
euubination the world has ever known, a combi-
rsion which if the expectations of its projectors
| are fulfilled will result in the avoiding of much
| economic waste through eliminating the posi-
aity of the erection Of unnecessary plants for
umpetitive reasons, in the effecting of many
sOnonies through the aboIshing of duplicate
oHcial positions and establishment OF a uniform
nice list, and in the enlargement of export
-sde by reason of the lower prices which can
hfxed in consequence of the various economies
Incident TO consolidation.
In the railroad field. too. combination is the
riing idea. and fer the same reasons. Compel
hg roads are being consolidated or leased, with
tsulting economy Of operation and permanent
sssaton Of rate cutting. and representatives of
peTerful roads are going into the boards OF
heretofore incorrigible rate cutting lines. in
Fhich bodies they have influence potent, if
lot controlling.
These operations and these prospects of in
4 dustrial stability being capitalized The
combinations witt outrageously watered stock
and with dishonest management viii meet their
deserved fate. but the public apparently are
convinced that combination makes for stable
Eni profitable rates and for conservative direc-
i tion. and in that belief the public, we'll
\ The strong interestS''-the great capitalists
] are buying stocks and the stock market is NOV
i Ing 10 q higher level. representing the BENEFITS
i expected 10 he derived from the new methods.
\ year or 50 ago 2 million share day" occurred
u y the New York Stock Exchange. but in Janu-
i ry Of this year more than ?, 100000 shares were
4 s2t in in single 5ay. as recorded while the
i tsnsactiOns not noted in the tremendous rush
| we're estimated 10 have swollen the days bust
rss 10 about 100000 shares. Prices are
tounding upward. with only occasional and in
Significant reCessiOns. and the bears and the
pessimists daily discounted and confounded.
The rising tide cannot rise forever, but when
\ ne turn is 70 come is a question which ordinary
l ren in Wall Street, and possibly the leaders
4 ESQ, cannot at this moment answer. Despite
| ne mass of new securities consequent upon the
| ormation Of new consultations, and despite the
| great rise IN prices Of stocks, money has ever
snce the election Of last fall been abundant and
1 NE rate exceedingly low. about per cent. on
/ Thursday for the first time in months the call
4 money rate shot up TO per cent, and there
FeTe runnOrs Of large withdra walls Of money for
/ Shipment u interior points.
Some Of the striking market advances since
/ flecfiOV