The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-03-15

meeting is to be held next month pending
which there now appears to be a truce OF
some sort.
xxx
1t has been observed that the Gates con-
tingent has been fiagrantly bearish during
the last sixty days. Its operations have
been on an extensive scale, and the repre-
sentatives OF that speculative faction have
gone out for a following. The same Gates
people who were wildly bulling the market
last September when stocks were 20 to 30
points higher than they are now, are in
sistent that the prices will go very much
lower. They are more vehemently bearish
now than they were bullish then. They
were frightfully wrong in September, and
the veterans of the street" are inclined to
think they are wrong now, although at the
present moment they have decidedly the
best of the argument and can point to the
fact that quotations are away down. Mr..
Gates and most of his loyal followers are
gathered at Palm Beach. and conduct their
operations from that point. Mr.. Royal L.
Smith is the only conspicuous member OF
this contingent in New York. Mr.. Smith is
almost unknown outside of a few brokerage
offices in Wall street, yet he is said to be
as heavy Spectator as Gates hlmsei1.
He is the mysterious unknown plunger
whose tremendous selling of Union Pacific
contributed TO the big slump in that stock.
He was short at one time over lOc.OO0 shares
OF Unien Pacific. His method of trading led
men to think that the selling was for &C
count OF Mr.. keene. The two are friends,
and it is not impossible that they are oper-
ating on joint account. Mr.. Smith was a
member OF the celebrated Chicago steer
and wire crowd and cleaned up not less
than $5000.000 IN his speculation in that Sc
curity. OF that amount he has invested
81 600 600 in New York real estate, and Is
said TO have increased his fortune to more
than SO, 600 900. He was formerly mer-
chant in Omaha, Neb He has been as
ISOLATED with John A: Drake in his turf en-
terprises. Three or four years ago Drake
and Smith took over 8, 600 900 from the Eng
lish bookmakers in one season with string
Of American horses. He is one of the most
unobtruSive men who ever played IN the
Wall-street game. He lives at the Waldorf
Astoria, and although in evidence there
great deal is personally known to but few.
XXX
Henry We'll has made something of a rep
utation on the recent slump in the stock
market With his brother, Mr.. We'll came
from st. Louis few years ago and has
been hard player in the stock market
ever since. He brought about $50 900 with
him and is said to have nearly gone broke
fighting the market during the long Dull
period. He has since recovered the entire
sum and added materially thereto, 1t Is
understood. He is chronic bear, and re-
sourceful and audacious Spectator. His ad-
ket leader after Mr.. Keene shall have laid
down his arms.
Wall street has been treasured by the
statements Of Secretary Shaw that he will
| not permit the unnecessary accumulation
| of idle money in the federal treasury. 1t is
entirely within his power to begin now to
| protect the business interests against a
possible stringency six or eight months
hence. He has authority to deposit in ma
tional banks the receipts from internal
revenue. After such collections are once de-
| posted In the treasury they cannot be with
| drawn, but he can, without doing violence
| to his duties. hold such collections until
| the interests of the country can be served
! by making them available for commercial
| purposes. He has not said fiat-footediy that
| he will do this, but there is good reason to
| believe he will take measures to guard
| against period of painful stringency, such
as was experienced last fall and which did
| incalculable damage. He can also employ
government money to buy bonds, but 1t is
not thought he will engage in this to any
| extent. In the event of the ratification of
the Panama canal treaty provision will
| have TO be made for the payment or $40,
100000 to French owners of the canal rights;
| also, SIC, 100000 to the Colombian govern
ment. The cash for these payments WILL In
4 all probability, be deposited In New York
banks, and bills sold against 1T In Paris
| anu LOnQOH. lIlS Will SIdoiC tie lolSiS
| creditors to get their money without the
| actual cash being transferred. 1t will be an
| illustration of having our cake and eating
| Ii. The transaction not only will not en-
| barrass the American monetary situation
| but it will actually give the banks a new
| supply of money and at the same time meet
| large obligation abroad. This indebted
| ness will, of course, have to be paid some
| time, but it must not be forgotten that the
| foreign trade balance is running in our
| favor at the rate of at least $1,000.O00 a day.
w. G.. N.