Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-12-21
TURN OF THE TIDE.
Matthew Marshall Sees the Beginning
of an Upward Movement
In THE PRICES OF ALL STOCKS.
Evidences of the Advances to Be Found on
Nearly Every Hand.
INFLUENCE OF THE MIND OVER MATTER
rsPFC1AL rELEGRAN TO THE DIsPATCH.1


tion, "Waiting for the Upward Move
ment,'' Matthew Marshall writes for to.
morrow's Sun as follows:
1t may, possibly. be owing to my want OF
acquaintance with operators on the Stock
Exchange and to the consequent restriction
of my sources of information to the daily re-
ports of the market published in the news,
papers, that fail to see, as yet, much evi.
dence of the general upward movement in
stocks for which the purchasers during the
temporary squirt OF last September have
ever since been waiting. The conditions as
not only concede, but have myself pointed
out, are favorable to rise. The harvests
have been abundant and the prices Of our
breadstuffs and other food products are
high; money is easy, and to be had at low
rates on good security; the railroads are
doing an extensive business and there is
nothing in the financial situation to alarm
the most timid, vet speculation seems to re-
main dull, the public apathetic.
There is demand for good bonds, and a
few special stocks have advanced somewhat
upon orders from Europe, but there is no
extensive buying. If 1 am right in the view
that take of it, this condition Of the stock
market goes to confirm my fayorite theory
that it is to the constitution of the human
mind, and not to material facts, that we
should look for the explanation and the
forecast of mems actions. Motives that are
all powerful with them 1t one time have no
effect at others, and different lines OF con-
duct frequently follow apparently identical
cause. The reason is that the motives and
the causes find varying tempers upon which
to exert themselves.
The Influence of Mind Over Matter.
When men are hopeful and sanguine every
favorable circumstance increases their en-
thusiasm and those that are unfavorable
are disregarded. When, on the contrary,
they are respondent and depressed they
are insensible to encouraging considerations
and dwell only on the dark side of things.
Between the two, also, there is 8 state of in
difference which at present prevents move
ment in any direction.
1t is the capacity for reading mems minds
and divining their mood, that distinguishes
the genius in stock speculation from the
common operator, just as the capacity for
perceiving tie decisive moment of a battle
and taking advantage of the enemy's un-
readiness marks the great general as su-
perior to the mere routine commander. The
absence of conspicuous leaders from the
Stock Exchange at the present moment
may, indeed, indicate that such leaders do
not exist, but it may also indicate that in
their judgment. the time for them to begin
operations has not yet arrived. For want of
their assistance in September the upward
movement then came, as L said it would, to
a speedy end, and for the want of it now the
market is halting and uncertain. There is,
plainly, no ground for initiating a fall, be-
cause prices are as low as they ought to be,
IN view of all the facts, and that there is no
general rise is because all the movers for it
are not yet ready.
Forgery and Fraud Have Hurt.
Much of the hesitancy of the stock-buying
public, am disposed to believe, is due to
the recent revelations of fraud and rascality
in the world of finance and to their influ-
ence In deterring people from putting their
money out of their hands into those of the
managers of corporations. A certain
amount of dishonesty, more or less, is al
ways to be expected from men everywhere,
but usually it is SO small in proportion to
their honesty that no account, practically,
Is taken of it. Lately, however, the instances
in which men who have been trusted as in
capable of doing wrong have shown them
selves false to their obligations have been
so frequent that it has alarmed the timid
and made the boldest pause
Edward NJ. Fields re-hypothecation of
securities hypothecated with him was bad
enough; his selling them outright was worse,
and now 1t appears that he has added
forgery to his previous offenses 1t is not
probable that even one other man in as good
standing as be was is equally base, but it is
POSSIBLE, and the bare possibility OF it is dis
heartening.
The dissension among the Richmond Ter
minal managers is also calculated to create
uneasiness. Here is an enormous property,
embracing ovr 8, 500 miles of railroad, against
which have been issued 100000 of stock
and an indefinite number OF millions OF
dollars of bonds, the value of which depends
entirely upon its being managed in the most
efficient manner. Yet upon the eve of a
general revival of business all over the
country it finds itself in financial straits,
and with officers who do not agree in their
views OF the policy to be followed. One set
proposes to call upon the stockholders Tor
pecuniary aid, and the other, with whom
confess smypat thize, asserts that such Il aid
Is not indispensable.
The Future Judged by the Past.
Assuredly, if the past is any indication of
the future, l should hesitate to intrust more
money to directors who have brought the
concern into its present condition. This
say, however, without having mastered the
whole problem. The affairs of the company
are so complicated by its numerous pur-
chases of stocks, assumptions and guaran-
tees OF bonds, and leases of railroads and
parts of railroads, that i should have to give
them at least weeks study under expert
guidance before / could hope to understand
them: refer to the subject only by way of
mentioning one of the hampers upon peo- |
pies cheerfulness which restraints them |
from buying stocks.
When the industrial stocks such as lead
cottonseed oil, distillers' and cattle feeders
trust, National Cordage Company, sugar |
re1neries and the like first began to be |
bought and sold in the market had great |
hopes that they would largely supplant rail- |
road securities in public favor, and furnish to |
investors who could afford to take a little |
risk, remumerative employment for their |
capital. That these stocks remain so low in |
price as they do, relatively to the dividends |
they are paying, proves that their future is |
distrusted. Certainly, when no more than 5 |
per cent per annum can be derived from |
good railroad investments, an industrial |
stock which divides 7Sand 10 per cent ought |
not to sell below par. Standard Oil Trust, with |
only y per cent dividends, sells at l60 and |
upward, and that the other stocks speak of |
are relatively so far below it, is not flatter- |
ing to the officers of the cOmpanieS
An Effect of Crisp's Election.
The election of a Speaker of the House of |
who is known to be an ad- |
vocate of the silver standard has revived |
the hopes of the partisans of silver and the |
fears of those of gold. The President has |
given bis word that he will veto any free |
silver coinage bill, and the securing of two |
thirds vote of the House overriding his veto |
seems unlikely. Still, the renewal of the |
q citation of the subj ject is one of the things |
that makes thoughtful men pause, and their |
attitude has its influence upon less conserva-
tive minds.
Logically. tie transition from the gold to
the silver standard, which free silver coin
rge would establish Immediately, and which |
the act of July a. 1890 will, if unrepealed
bring about ultimately, should increase the |
prices of all merchandise and commodities, |
and stimulate speculation; but most of the |
Wall street financial magnates are obsti-
nately convinced that it will create panic
and their apprehension makes them eau
tiOus.
Against these and other discouragements
are silently and slowly pro-
1ucing a revival Of confidence and of hone |
lends of railroad companies. General trade
Is still suffering from the bad crops of 80
md go, but the money which the farmers
md the planters are receiving for those of
this last season cannot long be withheld by
them from circulation. If they use it in
2aying their debts the creditors who receive
n i