The San Francisco call., 1901-11-17

traders on runors that an offer Of large
block Of Government bonds is pehding 1t
was also rumOred that the Secretary OF the
Treasury was about to raise the bid price for
Government bonds. No substantial basis could
be discovered for either rumor. The gain in
eaSh reserves by the banks. in spite OF the
large gold exports. was more material ground
for confidence over the money outlook. The
announcements before the close OF an engage
ment of 100000 for export next Tuesday by a
Boston clearinghouse upset a hope that the
gold export movement might be checked owing
10 the easier tone Of money and the rising in
sterling exchange at continental points. The
details OF the plan OF settlement OF the dis
SITUATION hao been eagerly anticipated 1or
weeks past and this settlement has been the
stimulating cause of the upward course of
prices OF stocks during all that period. Yet
when the announcement of the plan was made
this week prices of securities promptly turned
down and developed quite acute weakness.
Ihis does not necessarily mean that the pre-
Yious buying of stocks was on false premises.
Speculation naturally does not wait upon an
event, but anticipates it early as possible.
Inc recent course of prices shows that the
terms Of the settlement of the Northern Pa
CHIC quarrel were quite accurately anticipated
ana IN their essential details they had been
published In consequence the actual an
nouncement attracted very few buyers OF
stocks because the buying had been done al
ready. Such part of the buying had been
done with the desire of selling again at an
advance made large offerings for sale on Thurs
day, with a resulting break in prices. Yet the
Northern Pacific settlement is viewed with
profound satisfaction throughout the financial
world both here and abroad, 1t is regarded
as a dehnitive solution of problems that have
been a menace to the stability of values of
Northwestern securities for several years past.
80 Tar as the public is yet informed only the
railways Immediately parties to the settlement
were concerned. Except as the general con-
dition is bettered no special provisions have
been made known for the benefit of ST. Paul
and Atchison- AS for the relative advantages
OF the railways which were parties to the
SIl 2uatlel the setielhent accoros 70 theS Ohlon
Paclhc an equal control Of the Burlington by
representation upon the directory which was
its original contention, and in addition sub
stantla1 voice In the auairs OF the Northern
Pacific and the Great Northern by its holdings
in the Northern Security Company in
exchange for such holdings of Northern Pa
cihc, which was not originally coptended for
at all The redemption at par of Northern
Pacific preferred is not understood to yield a
substantial profit to the Union Pacific, its
large holdings of Northern Pacific preferred
We're acquired. according TO common under
standing, at below par. The growing constric-
ton Of the money market has had very little
influence on speculation previous to the realiz-
ing on the Northern Pacific settlement, but
emphasized the disposition to sell after the
reaction set in, as bankers were calling loans
and sales advanced. So far the domestic
outlook is concerned money conditions have
improved, the receipts of currency from the
interior tending to increase and the payments
by the sub-treasury on account of the Gov
ernment bond redemptions and on account of
the gold deposited at Pacific Coast points more
than onsetting the requirements of the Gov
ernnnent surplus. But the outward movement
OF gold TO Europe has proved so large as to
awaken anxiety 1t is now well understood
that the gold exports an index of the un-
suspected extent to which foreign capital was
borrowed in the pursuit Of the projects which
stimulated the great speculation of last spring
The Government returns of foreign trade
showing a decreased balance Of trade in our
favor for October of SIS $50, ,045. explains why
the supply Of commercial exchange has not
been sufficient to meet maturing requirements.
French capital has been largely loaned not
only here, but in London also, the amount
placed in London at one time running as high
as $500, 900, 900. according to the estimate OF
the London Statist.
The market for railroad bonds has continued
broad and active this week at advancing prices
for the most part
United States old As advanced Il per cent
over the closing bid of last week.