The morning journal-courier., 1908-12-28
FINANCIAL REVIEW Market Conditions During Last Week and Their Sig.
 nificance. OPINION MUCH UNSETTLED Shown in Change of Views on the Pur. chase of Colorado and Southern
 by C., B. & Q.

by O., B. & Q.
 The closing of the stock exchange last week on Thursday evening to re-
 main closed until Monday morning
 made the week a short one in nnancia affairs, the banking business on Sat urday proving largely nominal witt the exchange not in session. There were developments of importance not Withstanding the shortness of tho period and the sudden shifts in snecu. lative sentiment in regard to identica circumstances indicated a rather un. settled state of opinion This nuctu. ating state of sentiment was fairly il. lustrated In the change of views ot the significance of the Colorado and southern purchase by the Chicago Burlington and Quincy. In the semi. demorali2ed break in prices on Mon. day, this incident was made to figure as one of the impelllng causes and in the latter strong rebound fl was as. signed equally as the ground for en- thuslastic speculative buying. The hrst point of view was due to nro- fessed apprehension that this new dc. parture in policy on tho part of the Hiil railroad interests might forostnll n struggle similar to that preclpitatad by the first control of the Burlington In the joint interest of the Grcnt Northern and the Northern Pacific which had such disastrous conse- quences to the speculative position in 1901.
 The fact of a rupture of old rela- tons having occurred between F. H. Hawley the conveyor of the control or the Southwestern property, and E. H. Hartman, was made 10 seem to corroborate this view Other clrcum- stances conduced to the break in prices on Monday the formation of in f1uent'al opposition to the Amarican smelting and Refining company bring Ing Into hostility other lnportant groups of financial powers The sub stance of the testimony of Andrew Carnegie before the ways and means committee of the house of represen- fatiVes. besides It's bearing on the tariff revision question, was interpreted as rather sharply critical of other ineu- ental powers In the steel trade and to outline a divergence of view there which might foreshadow hostile acts A large factor In the hopeful spirit which has grown up over the financial prospect Is the conviction thai the most powerful of the great financial groups had been brought mto sncb a state of harmonious relations in inc adjustments of the havoc wrought by last years financial crisis that insur- snoe was secured agalnst any dastrur- tive hostilities for an indefinite time .o come. The sensitiveness of the market to these suggestions of renewed unfriendlY alignments is explained hy the large part played in former specu- lation by the assumptions of universal harmony. The misgivings felt in the early part of the week were shown to be largely disslpated by the subsequent rebound in prices In this rebound the alleged extensive plans of K H. liar rln1an for readiustment of railroad TO- lations once more played an important part, although that gentleman's sup posed serious illness was a cause Of acute weakness of stocks in the early part of the week
 A revised estimate of the Colorado and SouMern Transaction saw in if A prelude to other combinations along the same lines which would bring all the available southwestern and Gulf outlet railway systems into combina- tion with the different northwestern railroad powers, This line of coniec- ture opens up an extensive field for speculative activity and was the mo- tive for striking market movements in various groups of securities. The as- stunned likelihood of these mergers pre- sented attractive prospects for cn- hancement of values, not only by in- crease of earnings in new relations hut by Improvement of credit from the control by corporations Of greater pow CT. The speculation in the fixed inter est securities of these corporations was, consequently, as active as in the stocks and price movements were as wide. r was this phase of the bond market which accounted for it's great volume during the week The money market gave evidence by it's tranquility and it's rather easier tone Of the renewal of confidence that tho end-year period of extra requirements would be safe ly bridged and the returning eose of the period of refuX to bank reserves after the holidays reached without se- rious danger Encroachments on the cash holdings of the banks continued large. but the early liquidation in the stock market and supplies attracted from outside sources relieved the re- quirements.