Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-09-22
Clews on Stocks.
,pecial TO the Gazette.

Special to the Gazette
NEW YORK, Sept 19.-The stock market
shows renewed activity and strength. The
bears however, are not alone in the Opin-
ion that the advance in prices during the
last few weeks should almost suffice for the
time being. Among the ranks of the
bulls there are two classes who incline
to the same view; first, the conservatives,
who think that present prices are well up
to the present intrinsic value of stocks and
doubt the expediency of forcing up values
to point at which the investment demand
would be checked and ct which foreign
holders, under the pressure of an American
drain of gold. might sell out upon New
York: and second class are those who
have unloaded large lines of ''long'' stock
and are actuated by the purely speculative
purpose of being able to buy in again at
lower range of prices. The former of these
two classes is Simply quiescent; the latter
have been using their influence, directly
and indirectlyyto depress prices.
For the ref, the market may De said to
consist of <tfe sanguine and demonstrative
class, af~fbulls, /" who are always optimistic,
over-estimating favorable factors and I'M
derestimating unfavorable ones, and who
act upon prospects rather than existing
facts. When there is a large outside in
terest in the market-which is the case at
present-thls class of operators prove an
important clement, for they all act in the
same direction so long as they are able to
maintain their margins, and 1t Is therefore
difficult to break the force of their support.
At present the forces of the market are dl
yided into these unqualified bulls on the one
side, and the qualified bulls and the profess
sonal bears on the other. The result of
such contest under present conditions can
not be much other than succession of
sAeht fluctuations, with little gain for
either the one party or the other.
In Judging what may be the outcome of
this contest, it is important not to lose sight
of the fact that the extreme bulls have in
view prospect which, if realized, will
mean more active and more prosperous
condition of business and enterprise than
eNists<at present. We are in the midst of
AersSressive improvement, and each day
brings some new stimulus to the buoyancy
of the prevailing boom. Within the past
week, for instance, we have had govern
ment crop report of unexpectedly high av
erages of the condition of the unharvested
cereals. large increases in the earnings of
the railroads, the beginnings of imports of
gold from the continent of Europe, and
bank statement favorable to ease in money,
and in the meantime there are no unfaVor-
able circumstances appearing, while the
market was wholly unaffected by the Nit
ylene incident In this sense, 1t may be
said that much OF the bulling comes from
not be denied that such favoring drift of
occurrences strongly reinforces the SAN
guine bull party, while it induces caution
on the other side of the market. This ten
dency might be less important if there were
the caution usual at this season of the year
about the course of the money market; but,
the reflux of gold from Europe having al
ready set in, the money prospects are an
element of encouragement rather than dis
couraeement Perhaps the sole factor that
can be regarded as seriously suggestive of
distrust is the grave condition of European
politics, arising from Russia's coercion of
Turkey in relation to the passage of the
Dardanelles. That may prove to be very
grave question for the great powers, but to
the United States it could only bring impor-
tant advantages in an increased demand for
our investments and, in the event of war,
for cur food products. Nor is the negotia-
ton of Russia's loan in Paris calculated to
appreciably affect American investments in
Europe, as the loan will have to be taken
almost exclusively by French citizens, who
hold but few of our securities.
With so many elements in favor Of the