The times., 1899-06-19
THE STOCK MARKET OUTLOOK.
Cheap Money One of the Chief En-
cOuraging Factors.

Cheap Money One of the Chief En-
cOuraginE Factors.
New York. June 1S.-Among the many
matters Of Importance which point to an
inevitable and large advance in the price
of railroad and industrial securities at an
early date, money market conditions are
at the moment perhaps of chief import
ance. Both call and time rates are low.
and tendencies are not toward advance
Many conservative bankers anticipate even
substantial concessions from what are
present rates. The holder of funds is
| likely to have from this time forward
much impressed upon him the fact that
the stock exchange offers advantages be-
yond other opportunities; and certainly
this can be made clear as to offerings in
the loan market, for the lender OF money.
not the borrower, is likely to be for some
time to come the maker of concessions.
On the stock exchange list are lines of
securities amply safe, yielding two and
three times what can be the earning
power of funds in the loan market. Where
this fact can especially show as an infiu-
ence is in transactions for the account of
the great moneyed institutions of the
country, for we now have here corpora
tions of consequence enough in their in
vestment undertakings to figure effective
ly. Purchases by just such interests have
contributed largely to the fact, now very
clear, that stock and the bond markets
are now practically swept clear OF high
class securities yielding anything like a
| reasonable return upon the market value
they command
Wall Street hears much of impending
railway consultations. All the old stories
cutting figure in the buoyancy of last
fall and this spring are being revamped.
The Three C's deal is on again, the Union
Pacific Northwest combination approaches
| completion once more, the Louisville and
Nashville-Southern Railway alliance pro-
crosses to a point almost ready for
| nouncement-and so on through long list
of transactions proclaimed with pretence
of official suggestion. Such tales are used
to help stock market quotations by inter-
ests not most favorable to the maintenance
of such quotations. Ordinarily the sponsor
| for sensationalism of this sort is the rep
resentative of some speculative pool of
| traders anxious only to make a turn, and
willing therefor to invent and circulate
any sort OF fable. Undoubtedly plans of
7
aiming at such a concentration in certain
railway quarters as Will produce vast econ
omies in management; but such deals"
are not accomplished off-hand; the plan
ming of them and the execution of them
involve labors of detail beyond any ordi-
/ nary comprehension; and the free-and-easy
way in which Wall Street imaginations
evolve such accomplishments-and the ay
| spectators can sometimes profit through
I
| the intelligence of men who hearken to
| the tales and base investments on them.
| The anthracite trade is much improved.
| On the LIST of July hard coal prices will be
advanced. Anthracite producing and car
rying companies are making bstter head
way than for years past. Some of them
1 recently earning deficits will be able to
make fair dividend exhibits.
| 1t should be recorded also that strong
and skillful men are busily at work trying
| to untangle bituminous traffic snarls. and
sometime, to some extent, they may be
successful; but for the present. petty
| pools in Hooking Valley stocks will not be
able to allure many men who think and
| investigate.
| Phenomenal conditions are maintained
| in the iron and steel trade All records
Of production are being broken. and yet
| supply falls so far short of demand that
Il
| One of the incidents of the stock ex-
| change week has been the establishment
| of Federal Steel common shares upon
| dividend basis-the first of the common
stocks of the new iron trade combinations
! TO make record. In this one of Governor
| Flowers personal promises is kept by his
associates; not sentiment though but bust
| ness accomplishment, warrants the ac-
! tion which it can be relied upon repre-
| sents the official conviction that such divi-
! dends can be maintained, for veteran finan-
| ciers OF such high character as ID. o. Mills
and his associates are not petty specula-
tors laying traps for investors.
| This observation. unfortunately, is rot
to be recorded as to management in some
| other conspicuous iron trade quarters.
| What goes on in American Steel and Wire
affairs continues to be a fragrant illus
tration of dangers in Wall Street blind
| pool management.
Wall Street had reports yesterday that
! the labor troubles in Colorado are about to
be settled, one rumor predicting that
compromise will be reached before Mon
day night. On this there was some buying
| of the American Smelling stocks and of the
Denver and Rio Grande issues. all of
which showed firmness.
| Interests who for a week and more have
been shorting Colorado stocks on the
| theory that the strike of the smelters
would bring about a sharp slump evinced
disappointment yesterday over the fail
ure of their hopes Insiders have been
| buyers of all the shares since the strike
began, and the character of this buying has
served to keep the rank and file of Wall
Street away from the short side of the
group.
Despite the general softness of yester-
days market, Tennessee Coal and Iron
| held up above Ga, and made a fractional
net advance for the day. One commission
house bought most OF the stock traded in,
and its operations were supposed to be
for local banking interests. 1t has been
said for some time past that Tennessee
Coal stock was being picked up by one OF
the larger trust companies, and the sus-
picion has been that this buying is for in
terests identified with one of the big steel
combinations which are credited with an
ambition 10 get control of the property.
There was no specific news on Tennessee
Coal and Iron yesterday. except one rumor