The times., 1899-10-23
STOCK MARKET GOSSIP.
The Current Arguments of the Bulls
and Bears.

NEW YORK. Oct 22-ProfessionaI Wall
Street is still telling its story of active
money and the consequent impossibility
that the stock market can be at the be-
ginning of a boom in prices. The profess
sional Wall Street spectators and large
half of the brokers are bears on princi-
pie. and by nature, because the public are
bulls. and in the long run the bear side
is thus the profitable one. Sometimes,
however, the professionals make mistakes.
There are many who believe they are
making one now. They were wrong in
December and January a year ago, when
prices continued to go up and they con-
tinued to sell stocks and predict reactions
The public in that boom made an i'm
mense sum Of money out of its specula-
ton. 1t has lost it all since then, but
that was its own fault. The brokers and
the bear Wall Street newspapers are hold
ing back the public now and endeavoring
TO keep prices down, but the entire gen.
eral situation seems against them
1t is not a good argument to say that
active money is a depressing factor. For
a little time it has held back prices in the
stock market, but this abnormal condition
cannot but adjust itself shortly.
Five years ago, when the banks showed
over 500, 100000 surplus reserve, it was
hard to sell stocks at very much lower
prices, simply because the companies were
earning nothing. business men were drying
up, the number of commercial failures was
enormous, and confidence was lacking
Now, on the contrary, the agencies show
that the business community was never as
prosperous, the proportion of failures is
lower than ii ever was in the history of
the United States, labor Is more fully en-
ployed than it has been since 1881, the iron
trade is on the top wave of prosperity the
country has had another great crop of grain.
the railroads cannot get enough rolling
stock to transport the traffic offered to them,
the mining region is producing more gold
then was conceived TO be possible, and
prosperity is blooming everywhere.
The public is beginning to recognize these
facts, and the big bull leaders are begin
ming to make themselves evident in the
market. And so the market during the en-
tire past week has shown Improvement.
And so, further, many Of the best-informed
people believe that It Will continue to i'm
prove in the coming week.
Mr.. Clews, in mis- weekly financial let
ter, says of the money situation: 1T
seems reasonable to expect that when a
steady money market has become assured
beyond question there will be rush for
buying stocks which will cause a quick
and sharp advance in prices. So far as
respects domestic movements, the money
market is working toward an easier con-
dition. So far as respects foreign factors
affecting this market, the prospect is un-
certain enough to keep the banks still eau
tious In respect to time loans. London
appears bent upon holding its control of
the yellow metal we'll in hand, and with
exchange here so near the gold exporting
point it might be no difficult matter for
the Bank of England TO get a few millions
from US. Such an effect, however, would
come through manipulation rather than as
the natural outcome Of international bal
ances. The trade balance is now even more
in our favor than it was year ago. This
fact does not imply that We are exposed
to any early shipment of gold; 1t rather
indicates the opposite. But it is not easy
TO say what is impossible under the ex-
igencies of a great national bank"