The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-01-06

ing and put prices into a state of violent
effervescence. They quickly SKINNED
the fifth at the top level of prices to
take profits and attracted so large a
following to the selling side that the
sensational opening gains were mostly
wiped out before the close and in all
cases greatly reduced. After a day of
violent excitement at exceedingly wide
fluctuations the market was decidedly
easy in tone at the close and at a level
generally below last night. There were
some important exceptions and there
were number of spasmedic rallies of
weak stocks on covering by shorts. 1t
was a spectators day pure and simple
and whatever substantial considerations
may have been behind the buying de-
mand were almost completely lost sight
of in frenzy of speculative excitement.
No story was too wild or improbable
to gain ready credence. The growth of
the conviction that ST Paul is to pass
to the control of the Northern trans
continental lines has made the specu-
lative mind open to almost anything in
the way of rumors regarding railroad
combinations. Capitalists who have been
influential in the st. Paul deal are sup
posed to have additional far-reaching
plans. These supposed plans were made
the basis of todays extraordinary move
ments. The authorized announcement
before the close that J. p. Morgan &
Co., had secured control of the Central
railroad of New Jersey, in the interest
of the Reading company offered some
basis for the rumors current. The Read
ing stocks were most prominent in the
opening squirt of prices, the first pre-
ferred mounting five points. the second
preferred 912 and the common So The
o6x ,f,fI
was 5&ac. In the heavy buying at the
opening, there were advances also Of
four points in Missouri Pacific, 91s in ST.
Paul, "a in Erie first preferred, Us in
Erie common, points in Erie second
preferred and 81 in Rock Island. Gaius
of from / to points We're numerous all
through the list.
SAGGED AT TIE CLOSE.
The eagerness of the selling to take
profits caused sudden and violent de-
clines, successive sales in some cas- s
clipping q half to a point from prices
until they were carried back to last
nights level, or below. Meantime there
was growing weakness in Sugar. Ten
nessee Coal, the rubber stocks and some
other industrials. The feverish excite
ment on the floor of the exchange was
indescribable. With prices in a state of
became overwhelming Violent advanc.
were followed by wide relapsed and as
sudden recoveries. The evident un5te ad-
mess Of prices increased the wish TO
sell and the bank statement was taken
advantage of to further unload. St.
Paul reacted 51a from the top, New
Jersey, 4; Northern Pacific, y and
Pennsylvania, 3A. The Reading stocks
saved for the day net gains OF to 8
points, the Erie stocks 2 to 312; Balti-
more & Ohio, S3s; New Jersey, "a, and
Missouri Pacific, 11s. Otherwise there
was nothing important on the side of
gains and the list presents ragged line
of net losses.
REVIEW OF THE WEEK.
Wall street has witnessed one of the
most astonishing revolutions in specula-
tive sentiment during the past week in
It's history. On Thursday night the i'm
preston was well nigh universal among
the speculative public that the long
awaited reaction in stocks had oeen in
augurated and a heightened course Of
liquidation fairly established. The causea
underlying the sudden and unprecedented
recovery on stocks are not sufficiently
outlined yet to be clearly analyZed. The
course of prices is itself a sufficient dem
onstration that powerful combinations of
capital had plans still unprovided for
which necessitated the buying of whole
sale amounts of stocks of various rail-
roads. Tt is evident, also, that the spec
uative public in large numbers was
standing eagerly by looking for an oppor-
tunity to get into the market at prices
below the prevailing level, and their
precipitated rush to buy forced prices up
ward with a frothy effervescence. Much
ToII c-fF &c ole n
the identity of the obviously large short
interest which was driven to cover and
severely punished on Friday, and the
belief is general that the settlement Of
cid scores and antipathies had not small
part in the ferocious raid made on the
bears.
1t is difficult TO give an idea in re-
Prospect of midweek conditions IN the
stock market, but it is evident that very
Unhealthy conditions must have permeat-
ed the market to make possible such
back as occurred, considering the vast
aiting demand for stocks. The conse-
quence was a rather precipitated scram-
BILE to unload by the large number of
holders on a narrow margin, without re-
courses to extend the margin so as to
hold through and considerable decline,
and the reckless gamblers who stake
their all on an uncertain risk if a possible
chance is offered to gain sudden wealth.
There have been abundant Indications of
late of the growth of this element among
the active forces in the stock market
These signs are
BLIND CREDULITY
i'm sensational rumors on iimsy au-
tlority and innate improbability and a
reckless Indifference to what price is
paid for stocks, so only they may secure
title to them by however uncertain
tenure, as to the amount of cash paid
Gown and the ability to meet the future
obliga tons of payment. AT period of
speculative excitement such as has per-
sisted in Wall street for two months past,
there as always a mushroom growth of
bankers and brokers" in the financial
district who use every possible means to
stimulate the desire of the public to buy
stocks. With money cheap and with spec
uIative enthusiasm prepared to buy large
amounts of stocks, and holders loath
to Part with them the rise in price has
nothing to check It. With a jump of
several points in a stock, the holder on
margin reads large profits already earned
and invests his paper profits, thus aid
ing to rear the airy edifice On the un-
substantial basis, of his own unstable buy
ing capacity. The only thing lhat can