The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-11-08
WALL STREET AND PRESIDENCY
PREJUDICE AGAINST ROOSEVELT,
But HIS STRENGTH Is PLAIN.
Decrease of Friction Among the Big
NEUTRALITY-SUSPICIOUS. of Money for
Solvent Securities.
;pecial TO The IndIanapolis JournaI.

hold or traders that the election of McClel-
Ian for mayor Of New York would be a
signal for break in prices. This idea was
predicated on the assumption that DEM
ocratic victory in the premier city of the
country might presage a change in national
administration and endanger stability of
values. The market action did not support
this conclusion. The result in strong Re-
publican States apparently offset the cleo
ton in New York city. This great munich.
pahty is normally Democratic by 10000 to
loV,VO majority, and the election of Mr.
Mcclellan is held to mean merely a return
to normal political conditions. From a
market viewpoint it would appear that
there is no broadspread radical change in
sentiment, and the count of the ballots
leaves matters about as they were.
1t is far cry to the presidential cam
pa1gn next year, but representatives of the
great business interests which center in
Wall street are much concerned over the
political outlook, and speculation as to the
probable course of political events already
enters largely into Wall-street discussion
these days. There is unquestionably in
Wall street prejudice against Mr.. Roose-
Welt, but along with this feeling there is
a realization that his chances for renomina-
ton are Overwhelmingly favorable. A
great many representatives of conservative
interests would like to see some one else
nominated by the Republicans, but they
do not see how the thing can be done. They
are not yet prepared TO say that they are
OF VIII be reconciled to his renomina ton,
and consequently they are taking unusually
active interest in the talk about Democratic
candidates. The majority preference seems
TO incline toward Senator German, of Mary
| land, and as between that gentleman and
| the present occupant of the White House
| many who have hitherto classed themselves
| as Republicans would be disposed TO shift
political front How strong this feeling is
| there are no means at present of determine
ing, put II has considerable force. Mayor
| elect Mcclellan must also be counted as
| possibility. w. X. Hearst is heading Wig
/ orous movement on behalf of the younger
democracy against the tendency to have
any OF the Old wheelhorses for standard
bearer, and ne appears 10 be making some
/ headWay In that direction. The Hearst
movement Is distinctly distasteful to the
financial interests which have hitherto ex-
ercised more or less potent influence in
shaping conventions, platforms and nomi-
nations. 1t is felt that the next president
tai campaign Is proper, legitimate and
timely subject for thoughtful consideration
| as market factor. That it will have a
direct and potent bearing on prices is al
| ready admitted IN all quarters.
Clearly, there is less friction now between
| the giants of Wall street than there was a
Year ago. The element of transportation
has to very large extent been eliminated
from the situation and the spirit of conflict
/ seems to have died out II is the habit of
I the street to refer to the anti-Morgan party
as the Rockefeller or Standard Oil party,
while as a matter of fact the Standard Oil
| people are only members of the opposition
| Many conservative fnanciers whose opin-
| ions carry weight and who exert widespread
influence in the business world long viewed
| with alarm the tremendous aggressions OF
| Mr.. Morgan and his associates. The Stand
ard Oil group were among those who felt
that way and went out into the open first
of any to antasonize further expansion in
| industrial and financial fields. That cir
| cumStance gave TO the Standard Oil mag
| mates the position OF apparent leadership,
| although behind them were arrayed other
| interests almost as powerful as were repre-
Sented by the petroleum kings.
Discipline having been administered and
| dangerous expansion effectually stopped,
the need for further repression ceased. The
| spectacle Is now presented of practically
| all the great interests in Wall street work
| ing once more in substantial accord. The
| wind and water has been pretty thoroughly
| squeezed out Of securities of every descrip-
| ton, and those in command of great enter
| prises feel once more that they can proceed
with legitimate development without fear
OF further financial backsets.
There Is plenty of money for investment
| in wSil-backed stocks and bonds OF new
manufacture. This claim is borne out by
| the reception accorded the recent issue OF
| about $30.00o.0Oo in bonds bearing the in
dorsement of the Pennsylvania Railroad
Company. The issue was oversubscribed
4frreoG anf I1f4 oh
| the first pleasurable surprise it has had in
| months. A portion of these bonds are for
| refunding purposes. but the proceeds OF the
| ma ority will be used for the construction
| OF a great terminal station at Washington
u. c., and for other needed improvements
The necessity for enormous expenditures by
| this great railroad company TO provide ia
clities for handling its business typifies the
situation which confronts nearly every
| important line Of railway in the country
| The era OF heavy expenditures for this pur-
pose is not past by any means. The Erie
| Railroad, the Baltimore & Ohio. the New
York Central. the Delaware, Lackawanna
| & Western, the Reading and the Wabash in
the East: the Southern Railway, the Sea-
| board Air line, the Louisville & Nashville
and Illinois Central in the South, and the
| Rock Island the Missouri Pacific the St
| Paul, the Union Pacific. the Southern Pa
| cific and the Atchison IN the West, are al
| in the same boat. The terrific OUTLAWS OF
the last four or five years for betterments
| extensions, equipment and terminals still
| leave the work incomplete. The inability oil
most corporations, no matter what their
standing, TO sell bonds or new issues OF
stock during the last year has resulted In
the piling up OF a large volume of floating
Indebtedness which will be transferred tc
capital account at the earliest moment
| practical The Pennsylvania got the star
in this matter, but other roads may be re-
lied upon TO get in line quickly. New in
vestment capital accumulates rapidly anC
must find an outlet. Life insurance com
panies alone are obliged TO put out NOR,
than 81 600 900 a week. To this can be added
the steady accretions 10 the foretunes 81
the Weather classes, which accretfonS are
not long allowed 10 remain idle. AS sooI
as the market will stand il at least $3.50, 900.
coo in new railway bonds Will be crowded
for sale, OF which at least $175.0e0.000 viii
| represent the amount required TO take III
floating Indebtedness. This sum seems for
midable at first glance, but il is really onl,
about Ii per cent OF the total railroad
capitalization. This can hardly be tortured
into All evidence OF eztravagant manage
ment or unwise appropriation of funds. IL
circles OF high finance. the opinion is gen
| orally held that the bonds Will be absorbed
| without forced effort and without incon
| venience. IL proper care is exerted in no
throwing the whole bunch on the marke
at once.
Some of the old heads in Wall street fine
amusement in the action of the directors
and leading stockholders of the Mercantile
| Trust Company, 'of St Louis. I'm pledcin.