Santa Fe daily New Mexican. [volume] (Santa Fe, N.M.) 1885-1897, 1897-09-01
THE FINANCIAL WORLD.

The see saw state of the markets, first
up, then down, is exciting considerable
comment at this time, and many are won
dering what the outcome will be. Has
the top been reached and the reaction set
in, or will prices go still higher? Is the
recent rise in securities and grain the re-
suit of legitimate transactions based
upon actual conditions, or is it the result
of manipulation on the part of specula-
torsF These questions are pertinent, and
perhaps cannot be answered with any
certainty, but review of the situation
will lead conservative business men to
the opinion that after eliminating all the
speculative elements, prices will certainly
continue to advance, for several months
at least.
Stocks and bonds are following the
zigzag course which has been forshad-
owed for months. 1t could not be other
wise, since there is no force equal to the
task of moving uninterruptedly the mass
of securities now resting upon the market
or liable to be forthcoming under large
advance in prices. Holders of stocks
bought at low prices naturally desire to
secure the profits resulting from stiff
rise, and the throwing of great blocks of
securities upon the market has tend
ency to force prices down. Profits Sc
cured new purchases are made and this
in turn causes an upward tendency again.
Practical financiers know that to largely
raise the prices of the millions o. dollars
worth of securities represented in the
stock exchanges of the country must be
the work of more than a month or two.
To accomplish this the movement must
be panied with a steady growth of
confidence in the causes that are enhance
ing values. In the present case the ad.
vance has been based upon hopes rather
than accom- plished facts; and though the
hopes are questionably we'll founded,
yet they have not the same inspiring
force as realities.
The stocks and bonds listed on the New
York stock exchange in December, 1896,
amounted in round numbers to 100000
600, and it is not easy to compute the
amount of money necessary to support
an excited speculation covering this huge
mass of values. That can be determined
only through the experiment of expert
ence, and the amount of funds within
reach for that purpose, after the disturb
ing and disastrous conditions that have
prevailed for the last four years, will re-
main an uncertain quantity until the
demand is made. These considerations
are cited to show that the work of carry
ing up prices generally to the much high
or figures to which they are destined,
must occupy many months rather than
the few weeks which sanguine operators
have allowed for the performance. 1t
would not be surprising if the process of
elevation required another twelvemonth
to reach the top.
While there has been some heavy SELL
ing of American securities by foreigners,
and this has resulted in distrust of con-
ditions, orders are appearing for pur-
chases to be made for European holders,
which would indicate coming turn of
the tide in the London market. The fol-
lowing excerpt from the London Times
is significant:
"Many holders are becoming anxious
to operate in Americans now that their
prices have risen and that 80 many ele-
ments seem likely to work 10 their favor
during the next few months. Prudent
people are, of course, aware that the evi
dent desire of the American government
to shelve the question of currency reform
bodies ill for the United States in the
distant future, but spectators do not
trouble themselves about what will hap
pen in three years; what they care about
is what will happen in three months, or
three weeks. No one can invest in any
but the very highest class of American
bonds and feels thoroughly easy about
them when they are in his box, but now
that they have begun to rise and are still