The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1899-03-06
FINANCIAL FACTS.
Stock Market Fundamentally
Strong and Reasonably Active.
SPECULATIVE EXClTEMENTS

rant any furthcrU Uniform Advance.
Prudent Holders Beginning to Real
izc and Keeping out tho Market.
Eject Of tho Adjournment Of Con.
gross.
Special Correspondence Of Inteiiigencer.
NEW YORK, March Ain Its gener-
al aspects, the stock market exhibits
about the same features as last week
fundamentally strong and reasonably
active. with the speculative excitements
largely confined to the Industrial list.
And yet a keen observer may detect the
gradual approach OF Influences that
may before long subject the present
scale OF values to n sharp trial. The
external conditions affecting prices
such as. railroad, earnings and business
prosperity-remain quite as favorable
as they have been. But the thing to be
noted is that the opinion Is becoming
more general that these conditions do
not legltimately warrantsany further
uniform advance in prices; on the con-
'rary, the feeling is not exceptional that
current. values are not to be guaranteed
and that they are held UP more through
the extraordinary sangulne temper OF
outside operators and the absence OF
any disturbing elements than from
common conviction that current prices
really accord with the intrinsic merits
Of stocks.
A sanguine speculative temper and
ease In money may possibly keep prices
above legitimate values with consider
able pers!stency; but there always
comes limit sooner or later to the ex-
tent to which such a state OF things
may be carried. When prices have
reached the highest pitch to which they
can be pushed. variety of reactionary
influences come into play. When there
is no longer any clear chance OF profit
in buying, the demand slackens. Pru-
dent holders begin to realize and keep
out of the market until lower prices az
ford new inducements to buy The mar
ket gradually becomes .stagnant, which
Is one OF the most fatal tests OF
strength. After some yielding in prices,
margins are impaired and then comes
IN compulsory selling. which interested
efforts to sustain the market are usual
ly insufficient to Offset. At this point
arrives, the opportunity for the "bear,"
who finds the market an easy prey to
his tactics of attack. These are the in
fiuences that invariably come into play
after an extraordinary rise In prices:
they are natural to the machinery OF
ton, II will be wise to keep sharp OUT
look for the setting in OF this sort o.
reactionary drift.
still. It seems reasonably safe toe1.
pect rhat,, in the present case, such
reaction would not run TO any serious
lengths, The large profits made on the
recent rise have no doub. made the
speculative Interest exceptionally
strong. There is no probability that
serious relapse would be encouraged by
conditions In the money market, for
money Is likely to become very easy az
ter. the middle of April and remain SO
during the summer months. Also, Il Is
to be considered that the improvement
In the financial condition OF the rail-
roads and the great general prosperity
OF the country have invested securities
with aTmuch higher intrinsic value
that they have possessed during recent
years; and therefore after fair shrink
age IN prices stocks would be considered
cheap and bring In new buying orders.
There is yet another consideration
which may deserve attention In this
connection. The recent immense crea-
ton OF trust organizations Is having
q contracting effect upon the demand
for bank discounts. AS rule. these
new organizations have been construct
ed upon a basis which gives them
large surplus for working capital. They
are consequently buying their raw ma
terials for cash, with liberal discounts,
and need little or no bankfaccommoda-
ton. The consequence Is that probably
many millions OF paper. formerly made
by the original separate companies and
firms. is now beginning to disappear
from the, market. How far this new
condition OF affairs may prove perma-
nent remains to be seen; but, for the
present, the banks are finding hiatus
In theic loans which they are anxIously
waiting to see filed. In some cases, the
bank managers are considering the ex-
pcdient OF Investing their funds In rail-
road bonds and other flrst-class secur-
tiles. and some have already taken thai
course. The present high prices Of
stocks are against making such invest
ments with much freedom; but 1t seems
iar from improbable that, In the event
OF q break in the market. there might
DC an important Investment demand
from this source. For the foregoing and
other minor reasons. It appears to me
mat general break in prices would not
proceed to any serious length before 1t
encountered check. Viewing the sit
uation as whole. the indications are
mat the market is likely to be more or
less irregular during the entire month
and attended with frequent fluctuations
resulting probably In gravitation to
lower prices. AS we approach the LIST
oil April money will become temporarily
more active and will command higher
rate OF interest. We therefore, for the
present. advise selling on rallies and on
y buying conservatively on good
breaks and then only for quick turns
and moderate profits.
The adjournment OF Congress will. on
The whole, have favorable effect upon
Wall street interests. The various I'M
poTiant questions arising from the new
national situation, created by the war
with Spain have been disposed OF in one
WY or another; In some cases tempo
'ariiy. In others by political compro-