The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-09-20
Views of Henrv CIeyvs.

In reviewing the situation in Wall street
last week Henry Clews says: I'VE have
had another week of great activity in Wall
street. with a complete ascendancy of the
bull element, continued defeat and loss TO
the bears, and further considerable gains
in prices. The speculative movement con-
tinues to broaden, and orders from the in
terror upon d scale perhaps never
equaled in the history of Wall streets
greatest booms. Coming concurrently with
a revival of trade the most sudden and
complete that has ever been witnessed in
this country, those having idle funds on
hand seem to have come to the conclu-
sion that an opportunity has arisen for
using them proftably in transient pur-
chases Of securities, such as occurs but
once in a lifetime. With volume of de-
mand such as is thus created, the larger
professional operators find no lack of ma
terial for forming pools for the manipula-
ton of stocks upon any scale that their
means may permit; and they can safely
depend upon the outside element for CO.
operating for almost any advance Of price
that they n ay determine upon. The bears
stand nowhere in the face of such an up
ward propulsion; and their sales and pes
simistic pIetenses have only advanced
prices. Even London, after increduously
imagining that the great rise is but tenn
porary effervescence after long strain of
repression and consequently unloading upon
US some 200, 600 shares of railroad stock, has
at last been caught by the infection, and
during this week has been quite consider
able buyer of our issues. Having seen us
take all they had to sell without q vince,
the British metropolitanS have come 10 the
conclusion that there is more solidlty than
trOth in our boom, and are becoming eager
to take a hand in our game and have to
confess that the time IS past when, in
financial operations, London can control
New York.
'All this has been, from time to time,
foreshadowed in these advIcas; and have
yeti TO discover any evidence that this
great revival has exceeded what, as Il 1uIe
is warranted by the broad recovery in the
national conditions which regulate the val
lie of our corporate securities. On the con-
trary, to my view, the movement is far
from having reached its elimination. Yet,
at the same time, it is undesirable that
the market, however regulated by solid
considerations, should run into sage of
unref1ecting excitement. It is important
that caution should be maintained against
a wild phase of speculation; and such eau
ton must be exercised by the buying ele-
ment. Business prudence and cool Judg-
ment cannot be ignored without danger.
The current immense operations ere con-
Quoted almost entirely upon credit basis;
IN other words, upon margins. The ability
to resist bear attacks or unexpected adj
verse conditions is therefore measured by
the strength of these protective balances
in the hands of the corr ssion houses.
The exposure of marke - the present
one lies largely in the tac, that persons
holding stocks are easily tempted to use
their profits as margin for further pur-
chases Those purchases lend to further
force up prices, and such advances encOur-
age again further buying. BY his process
prices may be artincially forced Up with
out at the same time providing adequate
means, on the part of the holders, TO .hI-
port prices against assault. IN such a con-
dition of the market It matters little how
much values may be warranted by bona
tide conditions. The bears find tie holders
carrying more stock than they can Protect
under pressure; their attack is therefore
directed to the exhaustion of mars. rs; and,
that accomplished, they reach rich har-
vest, while the over-sanguine holders are
slaughtered 1t is Aoeth considering Nketh-
er, from the too lavish Increase Of he !d'ngs,
through this sort o. process. the way is
not being prepared for a bear oamralgn
later on which might greatly change the
present hopeful aspect Of the market and
indefinitely postpone The further adv ance
which, with prudent moderation in oper-
ations, would re SIRE 10 come. A Nord to
the wise is sufficient