The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-04-13
NO STABILITY TO TRADE
STOCK MARKET HAS BEEN VERY
NERVOUS AND ERRATIC.
l.. q ~. Furnished the Sensational
Feature of the transformations
in the Money Market.

NEW YORK, April 12.-The situation
centering about Louisville & Nashville was
the subject OF keen interest I'm Wall street
to-day and kept the market feverish and
unsettled. The jump of over ten points In
Chicago 81 Eastern Illinois and the rise in
Evansville & Terre Haute revived rumors
Of projects for Chicago outlet for Louis
Vile, and the conferences in progress and
known to the street strengthened the i'm
preston Of an impending parting control Of
Louisville & Nashville itself. There was a
renewal Of the activity and strength in
Colorado Southern, which was attributed
to the working out of plans for the extern
sion OF the Rock Island connections, indi-
Gated by the purchase of the Choctaw,
Oklahoma & Gulf Otherwise the principal
strength in speeialties. The buoyant
rise of Canadian Pacific to 12O, with re-
lapse OF point, was not explained. The
strength Of the various rubber stocks was
due to reports of proposed mergers, as We're
the movements in Virginia Carolina Chem
ical and Cotton Oil. The rise of over four
points in international Power was due TO
the expectation Of stock subscription rights.
The strength Of the market was not gen.
eral, and the advance after the bank state
ment was met by realizing, SO that the
close was irregular. The cash changes in
the bank statement conformed closely to
the estimates. The loan decrease was larger
even than hoped for, but the knowledge
that large loans were transferred TO the
trust companies and to foreign lenders
left the outlook for money by no means
clear.
There was a remarkably feverish and err
ratio stock market this week, which is at
tri0uted in Wall street to the speculative
operations of group of wealthy men who
nave realized great fortunes in the iron
and steel trade and who were controlling
factors In the constituent companies of the
United States Steel Corporation before the
formation Of that concern. The upward
course of prices which was esta blished last
week was interrupted Monday by the
fears of money stringency. The large eX-
ports Of gold on Tuesdays steamer threat
ened a total w1ping out of the surplus re-
serve of the banks, which was cut down
two-thirds as a result Of the transactions
OF last week. The rise in the money rates
shut on further gold exports and made ii
profitable for foreign bankers to negotiate
heavy loans in foreign money markets to
place here. The trust companies were also
large lenders at the higher level, as they
are not subject 10 the same legal restric-
tons as to the maintenance of cash reserve
and are thus able to leave their cash on
deposit with the banks TO figure in their
cash reserves while taking I'D the banks
loan. This feature of the local credit situa-
ton has been the subject OF some comment
anu III connection WITH the active
speculation which is fostered by the re-
sources thus made available. The money
market nevertheless has been unsettled all
the week and subject to occasional fiurries.
The leaders OF the speculation seem to be
unaffected by these flurrieS, and il is be-
lieved they are protected by heavy loans
on time. 1t was suspected that the early
unsettlement of money was due partly 10
the taking of large time loans in this in
terest.
The center of speculation shifted from St.
i 1r1a and he tha
| ern railway field. The movement i'm Louis
Vile & Nashville became so sensational
/ that the fear arose that the circumstances
/ OK the Northern Pacific corner last May
| might be repeated The determined ret-
! cence of all the parties in interest as to the
actual conditions existing in the stock
added to the uncertainty. The plausible
theory advanced was that advantage had
! been taken OF the strength of the stock TO
market the ewly-authOrized increase of
/ 50, 10000 of stock. The formality of appli-
cation and listing Of a new stock issue on
/ the Stock Exchange requires about a
months time Meantime the new stock is
| not good delivery against sales made on
| the Stock Exchange. IL was supposed that
the speculative pool I'm the stock had dis
| covered this technical short interest i'm the
market and by forcing up the price was
| compelling the delivery of stock held for
control, thus threatening the absorption of
/ the control. The announced purpose TO ap-
| ply portion of the new stock issue to the
| purchase of the Atlanta, Knoxville &
/ Northern revealed an incursiOn into the ter
ritory OF the Southern Railway Company.
! There were conjectures that control of
road into Chicago running north of the
Ohio river was also sought. Coupled with
the enormous dealings in the stock, these
facts and surmises gave color to the suppo-
| Sitton of q contest for control and the ac-
| tivity and strength I'm Southern Railway, as
/ though in sympathy seemed corrobora-
ton.
The announcement OF the purchase of the
| Choctaw, Oklahoma q Gulf, and the sup
! position that it was in the interest of the
| Rock Island. was additional incentive to
credulity in the progress OF plans for ex-
tension of community of interest and
strengthening Of position by existing rail-
road systems. by control of outlets and
| extensions. The activity and strength of
| the Gould stocks were supposed TO be due
| to the progress of plans for completing
| the systems outlet 10 the Atlantic coast.
| 1T is matter of observation that prac-
| tically all OF the railroad construction of
| the present era of industrial activity is
devoted TO developing and strengthening of
existing systems, rather than to the forma-
ton of new systems. 1t is argued that this
tends to insure against rivalry and de-
| structive competition.
| The postponement of the British budget
| statement defers the clearing up OF the
| foreign money situation. The announce
ment on good authority that Russia will
| seek no further loan in Europe this year
removes an apprehension that the recent
! loan placed in Germany. Belgium and HOl-
land was merely preliminary to a large
| Russian loan to be fiOated in France. The
imminence of the government report on
| the April crop condition kept that factor
| in the background in the stock market
during the week. The disappointment indi-
Gated yesterday I'm the grain markets was
| only slightly reflected in the stock market
The speculation In stocks has been sup
| plemented by an active buying of some of
| the low-grade speculative bonds on which
! interest payments are contingent, at sharp
| advances In price. United States twOs and
| old tours, registered, advanced Il and the
| fives per cent. The threes. coupon, de-
clined y, compared with the closing call
price of last week
| Following Saturdays share sales and
the recorded price changes:
High Low Closing
Stocks Sales est est Bid
| AtcnlAOn s......s...s.... l4.5VO aSl2 tsls lyl.
Atchison pref .......... 800 ISIS Sax G7s
Baltimore & Ohio. $500 1O7la 1864 1874
n