Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1874-01-08
THE FINANCIAL OUTLOOK.
Steady Advance i'm Prices of stocks
Plethora Of Money in the street.

AntdhCt EEAECS Oh SHOCKS
Plethora of Money in the Street.
From the New York Tribune, Jan. 5.
The almost universal bull movement
which seems to have taken entire pos
session of Wall street on Saturday was
fairl y the opening Of it's campaign.
Prices advanced along the entire list
from Il to ,! and 3 per cent. over the
marked advance of Friday. They
closed near the highest points touched
during the day, and bankers, brokers,
outside spectators, curb-stOne opera
tors and all, little and big, went home
in the belief that the next week was to
make a still more rapid advance.
There was scarcely anywhere a sign Of
any existence Of q bear party, although
it is hardly possible that the advance
can continue more than a week or two
without the development of some short
interest.
The active bulls assign all the old
and some new reasons for their belief
in strongly rising market. These are
repeated here merely as a matter Of
news, and as fairly representing the
present current Of feeling and talk in
the street.
l. There Is an enormous amount of
unemployed capital, the bulls say, which
is seeking investment, and is sure to
90 to the securities dealt in in Wall
street tOfind 1t. They reckon on some
thing like S75, 100000 Of coupons, divi-
dends, ETC., and count that S50,000,000
OF this is sure to 90 into Wall street
for more stocks and bonds. There be-
ing no new railroad bonds on the mar
ket, and nobody likely to touch them if
there We're, the only outlet for the
money is with existing and approved
securities. An these, led by the Van
derbilt stocks, with Western Union at
their head, are rapidly advancing IN
consequence.
2. The stocks themselves, even at the
same prices, are a better purchase than
they were before the panic. The pres
sure of the last two months has CON-
PEELED a general retrenchment of ex-
penses and rigid economy at all points.
Thus the Pennsylvania railroad cuts off
10 per cent from its salaries, and prob
ably saves double as much in other
economies. Smaller roads are able to
do this on yet larger scale, and the
actual saving OF their expenses is itself
equal to a dividend. The earnings of
the roads themselves have, meantime.
proved larger than was expected. This
is particularly true of roads which have
a through business, or have been com
PEELED to move the heavy crops Of the
Northwest. The Union Pacific, North
west, and St. Paul are claimed by the
bulls to have especially profted in this
way, while the Eastern ines-Lake
Shore. Central, etc.-have, of course,
reSped the same benefit.
3. The bills argue also that mon av ia
so plenty now that for long tme To
come the rate of interest is r-rra ~ no
exceedingly low. Thew point tn the
bank statements, to tt.e great influx of
money from al quc- l.ters. to the rate of
interest aiready dropping steadily, and
10 the iact Fhat no special demand for
money can create pinch for months
70 come.
+. They still claim that the whole
S4,OOO,OOO reserve is sure TO 90 out,
and that the Government will be for
tunate if it checks the imitation there.
5. The number Of buyers, speculative
and otherwise, Is daily increasing, and
4 very large proportion of them are new
men, coming to the street for invest
ment or speculative purchases.
8. On their theory, that railroad
stocks are fairly worth more now than
before the panic, in consequence of the
increased economy, heavy business,
ETC., the bulls argue that prices are still
intrinsically low, and compare the
prices at the close of 1872 with those
at the close of 1873 and beginning of
1874. The comparison is at least sug-
gestive. Thus: