New-York tribune., 1905-12-24
The Financial World.

suspicion. Many stocks have been oYermGch
manipulated. and this ordinarily might ind
cate dangerous situation but in the Wal
Street view at present such suggestion IS no
regarded fair. for. in the opinion Of active
interests. current prices do not yet approach
what naturally they are entitled 10 score. And
fairness does REQUIRE tho observation that sr
the ranks cf these active int srests a~e rsp-e-
sentatires of those who are regarded as consery-
ative. The market. es a whole, is not la tho
hands of any group Cf plugging SPECTATORS.
and criticism to the contrary IS not iuz' cr,t-
cisnn.
What. however. certainly does con7e to pass
Is market status that demands careful con
sderation close watcafulness, readiness OF dis
elimination. TIPS End points are TOO abundant:
prudence wiz geek facts.
That developments extraordinary enough IN
character to have vide market influence NAY
be impending is accepted as certain e. ulany
who have exceptional opportunities for qhat
In the Streets yeTnacuar is styled inside"
knowledge. Many such developments. indeed.
are forecast. That James J. Hill and Mr. Mor-
gan have in the Northwest accomplished mora
than yet publicly revealed is doubtless true
even beyond what the optimistic have been
prophssying. Such upbuiiders must round out
their achievements in qulct-;de. 90 vast. far
reaching national - the importance those
achievements necessarily have. Banking IN
teISSLS JHefS III w III street VINO OciieNe ana
do not hesitate to say that from the Morgan
Hill quarter almost Immediately may now be
expected an announcement that may even mark
a railway epoch. Current tremendous market
transactions i'll Union Pacific and St. Paul (and
the Vanderbilt issues) is not the play Of chill
dren. They who can stand sponsor for such
sweep and volume Of activity can only be in
the premier class TO estimate this particular
phase Of the market as mere manipulative per-
formance is prejudice gone daft.
In the Tanderbilts it is beyond question that
Td he
pletion Of plans which pronise-assure--,n
spirting conditions. New York Central puT-
have long time been earnestly working 90 ad-
vance the project Of Unifying the Vanderbilt
system. Lake Shores absorption through bond
issue with vast annual net profit to New York
Central for TesUltl will have duElication--and
the properties included in present progressive
ness are not confined to the lines east OF Chi
cago Northwestern figures Omaha also New
York Central can well afford to offer approx
mately 500 for both Northwestern and Omaha
siss . - -1''''- -'''7
The Importance Of Standard Oil influence in
Vanderbilt quarters is not nov disputed, not
disguised Through this medium Of mutual in
terest it is, indeed. that conservative observers
believe they can discern the nev development
of assured cooperation between Mr.. J. P. Nor
gan and the Nessrs. Rockafeliar-petty mar
plots no longer countenanced
New York Central. Northwestern and Omaha
Nickel Plate in buoyancy has been doing Big
-Four (Three C'sl can be expected DO. II ia
SeIIlng nluCh below lis merit value.
It pIeases the crowding pessirsts to use su-
perlatives touching variety of corporation af-
fairs. Railway legislation at Washington does
not yield quite the prospective gloom that was
counted upon. A Chicago banking house col
lapse does not produce the national disturbance
so aggressively predicted The reduction CT a
gas company dividend Chicago Aldermanic lev
les recognized affects no wide circle-even
Rock Island preferred's retirement from the div
ldend list fails to startle. Russian anarchy in
cites no feeling Of danger here-the pundits un-
able utterly to impress their notion that New
York is another MOSCOW. Fiat fall all the tire
soneIy reiterated arguments for doubt, de-
spondency and declines. American prosperity
has moved beyond the debatable 1ine-its reality
has become SO positive that it just sweeps TO
extinguishment the pettiness of professional
OF ain the n1arshaIled adverse elements there
Is but one that has a consequence entitled TO
considerate attention-that of the stress that
has been showing in the money market. We
have at the close of the year q call rate on the
Stock Exchange which on some days this week
has closely approached 20 per cent, but at no
time has this fairly reflected the average inter
est rate paid. On days when the high quota
tions were made the bulk of transactions were
Invariably effected at lower range. q fair sum
mary of the week would be between per cent
and IA per cent: only belated borrowers paid
top prices 1t is, of course, still within me
probability that the week ahead may see some
money furry We are now rlght up 70 Lhe
arrangements for immediate disbursements OF
January interest and dividends-but 1t becomes
apparent that the New York banks and trust
companies are amply able TO Withstand the m
usual strain incidental to extraordinary crop
movement, and are approaching return
flow of funds from the interior there is assur-
ance of speedy ease IN money. The return flow
last week was retarded by the unexpected chi
cago bank failures. but those are being adjusted
In much more satisfactory manner than was
at first thought possible and Will exert 10
further deterrent effect.
1t is. of course, automatic that high interest
rates attract funds, and there IS so muen
floating capital in this country and IN Canaaa
eagerly seeking Tenunerative returns that the
possibility of maintenance of Is or 20 per cent
call money in New York Is not thlnkable. More
over foreign funds would flow hither freely II
high money prices should endure. The money
notwithstanding to conservative and almost
unanimous banking opinion--carries with 1t no
alarm. Temporary scarcity Of ioanaole runas
due to active use for crop moving and CONNER
ciaI purposes is certainly not bear argument
The long expected merger Of Manhattan
local traction interests is consummated by In
terborough's purchase of control Of Metropoh-
tan Herein is explanation of recent activity
and strength I'm local traction shares. Tns
important point for consideration IS what
effect this merger will have upon the building
of further subways. Marketwtse the most IN
teresting question raised is an apparent desire
to substitute an Interborough guarantee OF
FIVE per cent. on Metropolitan in lieu OF tho
present seven per cent guarantee by Metro
politan Securities. Bearing on this both Mr-
Ryan and Mr.. Belmont state that nothing WIZ
be determined without offering every share.
holder equal participation. II may De t9sI
Metropolitan stockholders would prefer the IN
terborough to the Metropolitan Securities guaas
antee, though it should involve a reduction o. -
two per cent. On five per cent basis !.
would seem that there Is not much scope for
further rise In Metropolitan