The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-01-31
BOND MARKET GROWING
FORERUNNER OF MORE ACTIVITY
IN STOCKS, SAYS NICHOLAS.
III. c. Prick Is In Practical Command
of steel Trust-Gatcs's Interview
Came at the Right Time.
- to 40 Indianapolls Jonrnal.

Special 70 the Indianapolis Journal.
NEW YORK Jan. 3O.-Contnued activity
IN the bond market has been the conspicuous
feature CT the last two weeks IN the financial
district Generous taking OF profits caused a
reaction stocks. but this does not appear to
have interfcred 20 any extent with the demand
for underlying securities.
This tendency must prevail 50 long as de-
cidedly better returns can be had invest
ments in that quarter than the money will
bring loans in the street CAN money has
been obtairabIe some days this week low
a. : per cent. and six months loans have been
made at 4 per cent. and even shade under
that figure.
With good bonds obtainable the basis Of )
70 per cent. investors will continue TO take
their money out OF the banks and put 1t into
that class OF property. When reverse conditions
existed one and two years ago. the tendency
was to get out OF securities into cash. Now
Il is plainly and Enthusiastically the other way,
and herein lies the great legitimate strength OF
the markets
Activity in bonds Is almost invariably accom-
panied by more lively action in stocks and an
upward drift OF prices. Spectators have been
first avail themselves OF this fact and the
last two weeks have witnessed lively manipula-
ton fer a rise. followed by realizing of profits
and reaction in quotations. Incidentally many
banks and trust companies which have been car
ryIng heavy loads OF stocks and bonds either
on their own account or for clients have been
tightening cargo.
The result has been free distribution Of stocks
and the street at the present time is well sup
piled. This loOsening up Of the situation is
clearly manifest in every direction. No incon-
venience VIII follow II conditions continue IA
vorabIe and the public is given time to recover
its nerve without being forced to swallow more
than 1t can digest comfortably. Every incipient
bull movement IL endangered by over anxiety
on the part OF holders 10 let go OF stocks and
bonds they have been carrying through seasons
o. sweat The present situation is not free
from this element Of uncertainty.
Col. John W. Gates VINO has knack OF seeing
and selzing the psychological moment for spring
ing an interview on the public and producing
the nve1iest possible effect caused profound
impression in Wall street by his recent interview
on the boundless prosperity OF the West and
Southwest and the prevailing excellent business
conditions throughout the country at large. The
same thing had been said by hundreds OF others.
but 10 remained for him TO awaken people to n
situation the Importance OF which had been
drummed into dull ears.
Having taken the RTecagtion ., to load up with
out these interviews the Western plunger was
enabled To make neat turn in the market. which
tinues to talk radically bullish. 1t is said that
Mr.. Gates has tied up with the Standard oil
fellers socially well az In business way.
There Is basis for the rumOr that he is allied
with the Standard Oil interests in the South
west. and It Is not impossible that some OF the
spectacular market operations accredited TO the
Illinois and New York hnancier have the sub
stantial backing OF Mr.. Rockefeller
For more than six weeks Mr.. II. c. Frck has
been in actual command Of the United States
Steel Corporation He has spent most OF his
time in the Empire building, where the Steel
trust occupies two three floors for its Offices.
His word is law in every operative department of
the great corporation. While he has not been
given official authority 10 dictate. il is never
theless thoroughly understood by the officers of
the corporation that he Is distinctly ''it' and
--thstv say is paramount.
The recent working reOr ganization OF the COM
pa1ly more the work OF Mr.. Prick than that
OF any other man. The general plan left
largely 10 him. and the credit OF saving from
SIS. 900 To $50 100000 year In the expenses OF
the company is chiefly his This Is not to
insiders. but TO the general public IL will come
something in the nature OF surprise. Mr. Prick
was Mr.. MOrgan's first choice for the presidency
OF the Steel trust when the combination was
formed. almost three years ago The selection
that lime entirely satisfactory the
Standard OIL party and practically every other
important interest except Mr.. Carnegie
The little iron master insisted having
Mr. Schwab the head OF the corporation, and
Mr. Morgan was obliged 20 yield Now that
Mr. Frick has taken virtual control. the move