Rensselaer Journal, Volume 12, Number 20, Rensselaer, Jasper County, 23 October 1902 — BOND PURCHASES DISSIPATE FEAR [ARTICLE]

BOND PURCHASES DISSIPATE FEAR

New York Stock Market Expands on Action of See* retary Shaw. BULLS INVEST THEIR FUNDS Government Relief Is Followed by Powerful Leaders Entering the Field and Investing Their Surplus Fund In Securities, Causing an Advance. The New York stock market has been allowed to expand in the general gbod feeling resulting from the prospective and actual purchase of government bonds and the prospective settlement of the strike. Before the bond purchase plan was figured out there was absolute trepidation in quarters where great wealth is controlled. Money could scarcely be had at any figure through fear of expected demands from the west. But now the change of sentiment is significant because it exists with those who control, as < much as may be, the money situation. Bulls Enter Market. Banking sentiment is, however, not represented in the advance in securities. Powerful bull leaders got Into the market with surplus funds which did not have to be borrowed and started matters going. Opinion at the banks, though, is for conservatism. Commission houses close to leading interests are not as yet buying securities. They feel it is too early and that there are days of reckoning in money yet to come. The most potent factor in the matter of general relief has been Secretary Shaw’s bond purchase. He was warmly commended in banking circles, and many messages were wired to him, all of a complimentary and appreciative character. It is felt that his act will have universal influence for good. Valuable Lesson. The persons who feel this way are not those whose opinions are based on security prices. It is the substantial view of men who keep in touch with business conditions in almost every state in the Union. They are to the financial situation what the train dispatcher is to a railroad system. They familiarize themselves with every weak and strong spot in the situation, and it is their judgment that nothing short of A money panic has been averted. The lesson learned through overexpansion In the stock market will be permanent for the remainder of this year. It turns out that Frank A. Vanderlip, vice president of the National City bank, was the person consulted by Secretary Shaw in Washington with reference to the latter’s plans for affording relief. The National City bank and the bond houses readily co-oper-ated with the secretary, and a matter of international importance was concluded.