The Montgomery advertiser., 1901-11-17

tlement has been the stimulating cause of the upward course of prices Of stocks during all that period. Yet. when the an- nouncement of the plan was made this
 week prices of securities promptly turned downward and. developed quite acute weakness. This does not necessarily mean
 that the previous buying Of stocks was on false premises. Speculation naturally does not wait upon an event. but anticl-
 pates 1t as early as possible. The recent course of prices shows that the terms or
 the settlement of the Northern Pacific
 quarrel were quite accurately anticipated and in their essential details. they had been published. In consequence the ao-
 tual announcement attracted very lew been done already. Such part of the buy ing as has been done with the desire of selling again at an advance made large offerings for sale on Thursday with a re- sulting break in prices. Yet the Northern Pacific settlement is viewed with pro- found satisfaction thr rouRhout the finan- cial world both here and abroad. It IS re- garded as a definite solution of problems that have been a menace to the stability
 of values of northwestern railroad secu- rites for several years past. So far as the public is yet informed only the rail- roads immediate parties to the settlement
 were considered. Except as the general situation is bettered, no special provisions have been made known for the benefit of
 St. Paul and Atchison. As for the rela- tive advantages of the railroads which 
 accords to Union Pacific an equal control of Burlington by representation upon the directory, which was its original conten-
 ton and in addition snbstsntisl BI tisl voice s Great Northern by it's holdings in the new Northern Pacific Securities Company in
 exchange for Its holdings of Northern Pacific common stock, which was not or iginally contended for at all. The redemp- ton at par of Northern Pacific preferred is not understood to yield substantial profit to Union Pacific as it's large hold inGs of Northern Pacific preferred were standing at below par The growing con- striction of the money supply in market had very little influence on speculation previous to the releasing on the Northern Pacific settlement but emphasized the disposition to sell after the reaction set in as bankers were calling loans and rates advance. So far as the domestic outlook Is concerned money conditions have in- proved, the reports of currency in the interior tending to increase and payments by the sub-treasury on account ef gov ernment bond redemptions and on account of gold deposited at Pacific coasts more than off-setting the requirements of the government surplus. But the outward movement of gold to Europe has proved so large as to awagen anxiety. It is now we'll understood that the gold exports are an index of the unsuspected extent to which foreign capital was borrowed fin the pursuit of the projects which stimu- late the great SpeCulatlOn or last spring. The government returns of foreign trade showing a decrease in the balance of trade in our favor for October of $2S. ESQ., 045, explains why the supply of commer- cial 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 az $400 900 according to the esti- mate of The London Statist But why
 this capital should be so urgently and so extensively called home at this time is
 not clear, especially as money rates both here and in London have been better than in Paris. It was at first supposed to be | over the French coal miners threatening
 civil outbreaks. Installments of the Rus | sian loan are known to have paid in ad- vance of maturity and 1t Is expected that the new Russian loan may be offered within the year which was stipulated at the time of the subscription to the last
 one. Other government loans are sup posed to be in contemplation. Uncertain ty as to the extent to which the calling
 home of French credits may proceed wifi
 be- an unsettling influence until the re- Quirement Is more accurately defined
 The market for railroad bonds has con-
 tinued broad 4and active this week ad- vancing prices for the most part
 United States old As advanced Is per
 cent on over the closing bid of last week