The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1899-02-21
SEVEN BILL FACTORS
Henry Clews Enumerates as
Occurring All at Once.
FAITH IN HIGH PRICES
For Securities as Bright as
ver--Features of the Week,
FAITH IN HIGH PRICES


counted. AT the same time these very
facts have produced such change in pub
lie sentiment that it is questionable wheth-
err the upward movement has lost its mo-
mentum or not From extreme depression
the public pendulum has swung TO exces-
sive confidence, until nobody is willing to
believe bad news; while good news is Gag
erly swallowed with little regard 10 its
probability or accuracy. Everybody not
only seems TO want but evidently believe
in a high ranged market. Many stocks and
bonds are unquestionably selling AT fancy
prices, which offer no inducements TO either
the investor or the Spectator. Yet, in the
present temper of the market IL is appar-
emily easier to advanc eprices than 10 low
e. them; and, until money becomes frmer,
earnings decrease. or unfavorable develop
ments of some sort occur, there is little
chance of any serious reaction. Recently
the market has ben strong, chiefly in spots;
and this appears likely to ethe rule for
some time to come General causes have
about exerted their full effect; and hence
forth speculation vii lbe guided principally
by individual opinions and special circum-
favorites will be gradually withdrawn from
the speculative arena. and the newer is
SUES with an undeveloped future take their
places. The industrials are therefore max
ing a strong bid for public favor. At pres
ent the future of the market is rather I'M
certain. Many stocks we think are about
high enough TO let alone. Some have been
neglected in the onward movement, and
there may be profit in judicious selection
among these. Several could be named that
are much behind the market. Upon the
first indication of really unfavorable news
there would undoubtedly be free realizing;
but of late sentiment has overruied facts,
and looek for no weakening of the sit
uation until a change occurs N these re-
spects.
The intervention OF two days holiday
and the interruption caused by the extra
ordinary storm have somewhat cooled the
speculative enthusiasm and afforded Wall
street an opportunity for reflection, which
may not be without some advantage; the
more so because the situation in financial
affairs is an unprecedented one and i'm
perfectly understood. Among its numer-
Gus causes are % an unparalleled abundance
of capital seeking investment after a long
period of idleness consequent upon dis
trust; % a large floating surplus Of busi-
ness earnings which. for the time being
is being enthusiastically devoted to specu-
,ative uses: go large amounts of securities
have long been accommodating in the hands
of speculative capitalists, which they are
now seeking to dispose of to the public;
IA manu- npv- 7saar;rcr
ital. after waiting long for an opportunity;
(0 the large earnings of the railroads are
,placing many of them in what is taken to
be permanent dividend-paying position;
90 financial opinion has come to the con-
clusion that, in the future, capital must
accept lower rates of interest which i'm
plies a higher market price for the princi-
pal; and % enormous amounts of corpo-
rate and private industrial capital are be-
ing consolidated in the expectation of cut
ting down expenses and realizing larger
returns from the investments.
Never before has such a combination
Of powerful influences occurred at the
same moment in this country. They are
real factors and easy of comprehension;
and as they all have a bullish tendency,
it Is not difficult to conceive how they
have produced the very marked effects on
values that have occurred; nor is 1t to be
supposed that effects accruing from such
influential causes will quickly disappear.
The change in the tone Of the market has
taken such a strong hold upon opinion.
that nothing short of some unforeseen ca
lamity could be expected to put prices back
to the old-time level Il is more than pos
A.
some Of the more extreme advances The
mood OF some Of the large operators is
tending in that direction. and all the more
so because they have already made large
realizations and would welcome an op-
portunity for buying back a lower fig
ures. There il, however. one rather i'm
portant element which tends to coun teract
that drift. refer to the considerable mass
Of medium and low grade stocks the rise
on which has not been at all proportioned
TO that which has occurred upon the bet
ter grades Perhaps these securities have
not yet been sufficiently credited with .hs
benefits accruing from certain OF the in
fences referred 20 above and It seems
reasonable that the causes which have led
to such great appreciation in the gilt
edge investments should be regarded as
also comforting a pro rata additional value
upon stocks Of inferior grade. L Is a fea-
ture Of the great rise. however. that II has
favored the investment securities rather
than the speculative and any effort to ma
nipulars the latter Is now having 70 con-
tend with reactionary tendency IN the
former. This produces. for the moment.
an uncertain and hesltating market. not
ar,- sd ~
and long holdings. but rather 70 short
turns, buying OF the drops and realizing
on moderate advances.
Wan Street IS nor Indifferent q .-s in
mense current creations Of trust issues
Il 5 felt "a b. a movement n TIE pro
foundest importance: bus opinions ab9u. It's
outcome vary according 20 the tAaore.ic
standpoint from which the subject :
viewed. For the moment. l. = REGARDED
as affecting Wall Street interests rather
Indirectly than directly. that j. 20 say. onIv
50 far as = may possibly unsettle conf
deace in -ha somewhat distant future %
our iudust-.s, system; even the question
as % whether these new issues VII broad
81 as tLe speculative LIST af the exchange
is n0t viewed ar a matter q immediate
iate-=st. n considering that prospective
question .- S 20 be KEEP, IN mind taa. these
trl-st operations are Tot properly speaking
new creations they ara rather the -
shaping % old csps-als: - tha- ne move
us-t = 20 - regarded as OILY n Tn
ttei sense al expansion y corporate capt
Ia The new consolidated issues are.
however much more adapted 20 great
speculative operations than those thsv dis-
.lla.a- Al ~ 1s-ra ax.e-t = 49, -