The Savannah morning news., 1904-01-17
TRADING In WALL STREET
Movements of the Financial Giants in the
Money Market
By w. @. NICHOLAS.

! story of his alleged betrayal of his
! former associates will ever remain a
| mystery. OsgOod is now in Denver
forming a big coal combination in OPP
position to the Colorado Fuel and Iron
Company. He has also revived his in
terest in the Iowa coal fields, where he
| got his start in business. 1t is hard
ly probable, however, that Wall street
will be permanently deprived of the
presence of the picturesque figure who
contributed so piquantly to the gaiety
OF that quarter. Osgood will surely
be back in his old haunts.
There is a shrewd suspicion that the
wide advertising of the poor business
done by the United States Steel Cor
poration during the last quarter was
to some extent at least, for effect upon
the employees. 1t is well known that
previous to the official announcement
of bad business and decreased earn
ings the workingmen in the iron trades
were in a state of disquiet and threat
ening strikes against reductions in
pay. Since then the agitation in that
quarter seems to have subsidized and
Wall street no longer hears of impend-
in trouble. There is reason to believe
that the official reports of industrial
conditions have been quite as bad as
the facts warrant If this be true it
is not unreasonable to suppose that
any change which may occur in the
situation will be for the better. The
report is prevalent that the statement
of earnings for the current quarter
will show marked improvement over
that of the last quarter in the affairs
of the big steel trust.
A prominent Wall street operator
who has been through a good many
wars tells me that in his opinion hos
tilities between Japan and Russia
would be bullish rather than bearish
on SO rich and resourceful a country
as our own. He says he should want
to go long of stocks at night if he
knew that war was to be declared the
next morning as in that event he
should expect to buy at concessions
from the shock of the news. The ul-
innate effect, however, OF war would
be favorable to this country, and he
goes back over the history of several
foreign wars and shows that all of
them were bearish before they began,
publish after they got started and
very disastrous in their after effects.
Ihere is no doubt that an outbreak
OF hostilities between Japan and Rus
STA would cause Europe to dunn Sc
curlues in London and London in turn
would sell securities in this market.
there can be no doubt either that there
would be heavy drain on New York
Tor money, this being one of the prin-
clpal money centers of the world. But
very important consideration thus
far has been overlooked, namely. that
this money would be wanted largely
Tor the purchase of such things as we
produce in large quantities, notably.
food stuffs. A large proportion or the
money would therefore be returned 10
US IN the payment for supplies. War
also would increase enormously the
tonnage of trans continental railroads
Inc security markets of the world
nave been depressed during the last
fortnight through fear of war. but If
mas often proved to be the case that
the fear of war so far as financial
centers are concerned, is worse than
the war itself. Some of the shrewdest
operators in Wall street would hesitate
TO take a bearish attitude on the stock
market merely because "a declaration
OF war in the Far East.
Simultaneous strength of Pennsvl-
Vanla and the Gould stocks this week
was made the occasion for reviving
the story that the differences between
the Pennsylvania and the Gould in
terests were about to be amicably set
tied. 1t has been known for a long
time that bad feeling existed between
these two parties owing to the inva-
sion of Pennsylvania eastern terri
tory by. the Gould crowd, and for a
While the Pennsylvania was actively
hostile to the eastern extension of the
Wabash. A prominent financial author
ity who is close to the Gould inter-
ests said this week that so far as thew
We're concerned there was nothing to
be settled but the Western Unions
suit against the Pennsylvania for
damage and so far there has been no
suggestion of that. AS to the rest the
Gould party is going ahead with its
programme. 1t will get to tide-wa-
ter eventually and the Pennsylvania
interests appears to have ceased active
hostilities. The only thing that could
happen to the Gould situation would
be the establishment of friendly rela-
tions between the Pennsylvania and
the Gould interests, but on this point
the latter are believed to be indiffer-
ent. It is it difficult to see how con-
cessions from Pennsylvania to Wabash
could be bullish on Pennsylvania, be-
ca use the extension of the Greater
Missouri Pacific System to tide-water
would invade the territory and COM
pete for the business of the Pennsyl-
vania. But on "rumors" of settlement
Wall street traders have insisted on
bulling Pennsylvania. There is a great
deal of speculative interest in Penn
sylvania stock. 1t is heavily bversold
A large proportion of the trading ele-
ment believes that it will sell lower.
Conservative traders are waiting to
see what extent a shrinkage of manu-
featuring activity East will effect the
bituminous coal market and through