New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-12-06
THE FINANCIAL MARKETS.
STOCK TRADING CONDITIONS.
REASONS FOR THE OPTIMISTIC
VIEW OF AFFAIRS.
Sunday. December 5-p. m.

Sunday. December b-p. m
Conditions which contribute to successful
stock market speculation are not wanting In
the current Wall Street situation. Ever since
the elimination of the decline following the
summers advance the speculative structure has
been growing stronger. the supply OF floating
securities has been lessened and the work Oh
digestion has been thorough AT least, all indi-
cations favor this view. There are many rea-
sons warranting the optimism which now pre-
walls in the majority Of Wall Street banking
houses To give these reasons, to sho" 'he"
relation to the intrinsic worth Of securities
would lie a repetition OF explanations ana re
marks already made In The Tribune. Inc
average specuIator does not pin his faith or
risk his money on what he hears ABOUT ''e
crops about railroad earnings bank ciearihss'
business expansion or other influences WHICH
make or break the actual value or security
Great speculative leaders watch the signs Oh 'he
times. and by their shrewdness experience an"
faculty OF discernment are enabled 10 'ake au-
rar,ay. 10 favorable factors in their incipient
stage. ard the ordinary spectators then fol-
low their lead. When the floating supply OF
securities grows small. when no new issues
come on the market and when money becomes
a drug at the leading financial centres. there Is
ground for belief that market values are reaoy
q
terests representing substantial capital believe
that the immediate future Is clear Of obstacles
tending to provoke uncertainty and business
depression. Indications have to be accepted
as basis for market predictions, and as a
guide for those who wish to operate as sue
cessfully as the men who control and promote
great market movements rather than actual
Information And operators Of unlimited means
have to test the public appetite for speculation
before they feel warranted in putting the Specu-
latve wheels in motion.
In the last week indications have multiplied
that substantial market interests have come TO-
gether for the purpose Of putting stock values
higher. Whether or not sentiment is convinced
that important interests are in the market II IS
not yet possible to say, but it is not unlikely
that this weeks market Will settle the question
In the Affirmative. A December rise is not UNI
usual 1t should be borne in mind. however
that past December booms have almost invari-
ably ended sat the beginning Of the new year
Last weeks operations were larger and better
distributed than in many weeks. and the fact
that the market stood the test OF realizing sales
so well pointed to a better speculative situa-
ton than at any time since the summers active
bull movement. when. 1t may be Remembered
frequent opportunities were presented to buy
stocks back a l and per cent reaction
Bull factors in the stock market, which have re-
Gently been ignored, are more permanent than
the adverse factors which until the last week
have been the chief influence in stock specula-
ton. 1t seems as If all the bad features real
and imaginary, in the current situation have
been discounted for in the last two months
Wall Street has done little save trouble its wis
over politics. Congress and Cuba. As the meet
ing of Congress grows nearer, fears OF w an
Street interests are in great measure dissipated,
and il is conceded that Congress IL not danger
Gus. 1t would appear that Wall Street traders
had decided TO give President Mckinley ana
Congress a chance to do something, and that
they believed that good, rather than harm,
would result from this winters session OF the
National legislators
II time were taken by anxious inquirers 10
study few factors in the present situation
there would be occasion for asking why IN
vestors were buying bonds and dividend paying
stocks In the first place. business conditions
Then money Is abundant and available Tor Sc
curites investments; railroad rate troubles are
being handled more integently: railroad man
agement is more conservative ana emlnentiy pei
try and investors have confidence In the pros
perity of the United States. and feel assured
that the countrys business will be guarded ana
protected by intelligent and patriotic Presi-
dent The best and most important features OF
Wall Street business at present are the strength
and activity Of railroad bonds. An unusually
heavy demand for all classes Of railroad bonds
both on the Stock Exchange and over the couh-
ters of investment houses. was marked last
week, total sales on the STOCK ExchahBe repre-
senting in par value S13226OOO as against
So 44OOOO in the preceding week. Naturally,
the approach Of the January disbursement pc
riod made the demand heavier than In other
weeks but the improving business outlook ana
a fuller appreciation OF the intrinsic worth OF
railroad bonds were the causes underlying the
renewed inquiry The highest grade bonds. by
reason Of their scarcity. have advanced almost
70 prohibtive figures so that the lower-prceu
issues contribute the greatest activity IN the
present market -.
the chief active stocks and bonds in the week: