The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-04-13
MARKET IS FEVERISH
RIES ADD DOUBT TO ALL
SPECULATION
MONEY SITUATION. DOUBTFUL
Disappointment In Grain Market
Owing to Government Crop Re-
port Is but FeebIy Reflected in
Stocks and Bonds Trading.

Stocks and Bonds Trading.
NEW YORK, April 12.-The questions
| centering about Louisville & Nashville
was the subject of keen interest in Wall
street today and kept the market fever
| ish and unsettled The jumps of over
10 points in Chicago & Eastern Illinois
and the rise in Evansville & Terre Haute
revived rumors of projects for a Chi
cago outlet for the Louisville & Nash
vile and the conference in progress and
known to the steel world strengthened
the impression of a change of control
of Louisville & Nashville itself.
There was a renewal of the activity
and strength in Colorado & Southern.
which was attributed to the working ouS
of plans for the extension of the Rock
Island connections, indicated by the pur-
chase of the Choctaw, Oklahoma & Gulf.
specialties. The buoyant rise of Cana
dian Pacific to 12O. with a relapse of
point, was not explained.
The strength Of the various rubber
stocks was due to reports of proposed
mergers, as were the movements in Vir-
GINA Carolina Chemical and Cotton Oil.
The rise of over points in international
Power was due to the expectation of
stock subscription rights. The strength
of the market was not general and the
advance after the bank statement was
met by realizing, so that the closing was
irregular.
The cash changes in the bank state
ment 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 COM
panies and to foreign lenders, left the
money situation by no means clear.
There was a remarkably feverish and
erratlc stock market this week, which is
attributed in Wall street to the Specu-
lative operations Of group of wealthy
men who have realized great fortunes
in the iron and steel trade, and who were
controlling factors in the constituent
corporation before the formation of that
concern. The upward course Of prices
which was established last week was in
terrupted yesterday by the fears of
money stringency. The large exports of
gold for Tuesdays steamer threatened
total wiping out of the surplus reserve
OF the banks, which was cut down two
thirds as result of the transactions Of
last week
The rise in the money rates shut off
further gold exports and made it profit
able for foreign bankers to negotiate
heavy loans in foreign money markets to
place here. The trust companies were
also large leaders at the higher level,
as they are not subject to the same legal
restrictions as to the maintenance Of the
cash reserve and are thus able to leave
their cash on deposit with the banks to
inquire in their cash reserves, while talk
ing up the banks loan.
This feature of the local credit situa-
tion has been the subject of some COM
ment and ticism in connection with
the active speculation which is foStered
by the resources thus made available.
The money market has, nevertheless
been unsettled all week and subject to
occasional furries
Leaders Have No Fear.
The leaders of the speculation seem to
be unaffected by these flurries, and it is
believed they are protected by heavy
loans on time. 1t was suspected that the
early settlement Of money was due part
ly to the taking out of large time loans
in this interest. The center of the spec
ulatlon shifted this week from st. Paul
and the Western group to the Southern
railroad field. The movement in Louis
vile Nashville became so sensational
that the fear was aroused that the cir
cumstances of the Northern Pacific cor
ner last May might be repeated. The de-
termined reticence of all tn parties in In
terest as to the actual conditions existing
The plausible theory advanced was that
advantage had been taken of the
strength of the stock to market the newly
authorized increase of S., 000, 600 of stock
The formality of application and listing
of a new stock issue on the stock ex-
change requires about q months time
Meantime the new stock is not good de-
livery against sales made on the stock
speculative pool in the stock had dis
covered this technical short interest in
the market, and by forcing up the price
was compelling the delivery of stock held
for CONTROL thus threatening the absorp-
ton of the control.
The announced purpose to apply a por-
ton OF the new stock issue to the pur-
chase of the Atlanta, Knoxville & North
ern revealed an incursion into the terri
tory of the Southern Railway company.
There were conjectureS that control Of
a road into Chicago. running north Of
the Ohio river, also was sought Coupled
with the enormous dealings in the stock,
these facts and surmiseS gave color to
the supposftion of contest for control.
and the activity and strength in South
ern Railway, as though in sympathy,
seemed corrobOration
The announcement of the purchase of
the Choctaw, Oklahoma & Gulf, and the
Supposit1on that it was in the interest Of
the Rock Island, was additional incentive
to belief in the progress of plans. for the
extension of community of interest and
strengthening of position by existing rail-
road systems by control of outlets and
extensions.
Gould System Stocks Strong.
The activity and strength of the Gould
stocks were supposed to be due to the
progress of plans for completing the sys-
TENS outlet to the Atlantic coast. 1t is
a matter of observation that practically
all of the railroad construction of the
present era of Industrial activity is de-
voted to extension and strengthening of
existing systems rather than to the for
that this tends to insure against rivalry
and destructive competition
The postponement of the British bud
get statements defers the clearing up Of
the foreign money situation. The an
Eouncement on good authority that Rus
STA will seek no further loan in Europe
this year removes an apprehension
that the recent loan placed IN Germany,
Belgium and Holland was merely pre-
liminary to a large Russian loan, to be
foated in France. The imminence of the
government report on the April l crop
condition kept that factor in the back
ground in the stock market during the
week The disappointment indicated yes
terday in 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 Is and old As registered
advanced Il, and the IS 1 per cent. The
IS, coupon, declined 1s per cent. COM
pared with the closing call price of last
week.