New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-04-10

rrv,s OPERATIONS IN STOCKS.

THE WIEN
,,,arently very large NUMBER OF specula'o's
Appai.,.d current business prosperity
nave Cor big margins. They have placed
$50. ,.,th in intrinsic worth 10 sustain nc'''ous
I.,rs and they have disregaroeu ac'ua' me-
liz huying stocks on tips ana nleasie ',.o'
Ill, And they have bought STOCKS 'nh' nav
s-.,.ed from twenty-five to sixty points vi
- oxnectation that advances ALREADY suS'"'N.u
ia he doubled before sunerlng 'e''aoN
,,,.o, stock advances sixty points "l'nou' az
,,,orruntion. as noted in the case OF DrooA'' u
OF, Transit. common-sense wouIu au'iSe 40
,urohase on very large margins only 'e' sumo
...a.rs bought II at $50 on from III per ce". ~
on ,er cent margins confidently oeheViHe '""'
- .naculatve or business factor couiu iiiou.e 90
s.o,r. 4, sufficient extent to wipe out III anu ~
Nv cent Of the purchase price. felso"'
-. prooklvn Rapid Transit at us hishes'
100 =, the year. 1864, found that oo per CEN
-. noe NOT sufficient TO protect thelr hoiu-
49,. a. the last weeks decline. Brooklyn n"p'u
n~n,,s,t has great possibilities as the company
..,oor, controls the traffic business OF ali OIL
I.,o,a The future Of the company is eN-
-. ,ror,is,ne. and there Is no DOUBT IN inc
- 49, the stock will be a permanent invest
-. .o,,-i,v at no remote period. But just d.
,.,s O speculative Issue. passing rapluiy
-. o,a holder 10 another. The recent ia'oi
49,. so,,e,onnnents in the affairs of the cohpan!
ond the fact that powerful interests arc
.oa NTH Il have made II the most ACTIVE
o,,ot,va feature on the list and LOT 'h'S
rsasor alone It ought only to be bought Oh Id Sc
margins. ,o,eth
Brooklyn Rapid Transit is mentioned At ie'.s -
q. an example of the current speculation Inc
same causes which led 10 its sharp oecl'he "ei'
osnons,hle for the break in the industrial issues
and in Manhattan and Metropolitan street rai-
WAY. Many banks refused to accept INC iooa'
traction and Industrial issues as cohatei ai
against loans, except at TREMENDOUS rnaiA'"e
down in their market values. In some cases IN
dustrial stocks were thrown out entireV' anu
the result naturally reacted most severely upon
the marginal trader. Brokers were loaded with
these stocks at a time when the banks surplus
reserves were small in comparison with tnelr
loans and deposit obligations. Suddenly the
banks refused to assist the brokers who were
carving heavy supplies Of Industrial STOCKS
and as a consequence customers were asked 10
cash their profits, put up additional margins or
sell al q loss The majority Of holders sold at
loss Everybody began to sell at once and for
a time veritable tempest ragged in Wall Street.
while the industrial horizon was clear and prom
Using. Industrial conditions in the country did
not change nor were there any well-defined
clouds in the general financial sky. 1t was
merely a speculative storm, encouraged perhaps
by the banking institutions. who saw that real
clouds would gather if reckless speculation were
not checked at once and timely lesson taught
to Wall Street traders. When the people who
TO cover they apparently cared not what they
lost nor how much they suffered, as long as
they got out. Their fright inspired fear in the
minds Of people who had no cause for alarm,
and so the selling movement became a STAN
pede in which prices declined TO a level where
powerful interests were willing to extend sup
port
A big break is generally followed by an ir-
regular recovery, and this in turn often gives
way to a further slow reaction TO lower level
from which healthful bull movement sets in
AS soon as Wall Street RECEIVERS its composure
and SPECTATORS are willing to conine their
operations to stocks of recognized merit, an
upward movement based on business conditions
ought to take place. Every conservative man
in Wall Street believes that such a movement
will follow last weeks upheaval and the fact
that securities are passing into stronger hands
and general readjustment OF values and hold
ings is going on encourages the prediction that
the spring and summer campaign In stocks will
be prosperous one for the people who can now,
buy outright or carry stocks on ample mare,ns
The actual position OF the money market "a ra
fected In time loans, which show no disturb
ance, and which as a consequence indicate q
healthful business situation Progress is noted
IN all the industries. Payments through clear
ing houses in the first quarter of 1909 were 40
per cent larger than in the same time last wear
and 55 per cent larger than in 1902 Railroad
earnings are most encouraging. Ii is too earIv
TO place any confidence in seasonable cron re-.
ports and even in the reports so far received
there is nothing to indicate that the damage n
the crops has been larger than In average years
The !ow-prced railroad stocks Of merit and
the industrias Of recognized value promise "a
become active this spring and summer. The
Southwestern railroad issues should do better
and in the same group may be classed Mexican
Central. which ought 10 reach higher level
1t is understood that two powerful New-Yorh
and Boston banking houses have been accumu-
lating Mexican Central TO hold for price vel
above %. Peoples Gas. which is steady divi
dend payer is not dear, nor is United States Rub.
Der common, which will be In the dividend list al
no remote period. There are good industr.als as
well good railroad stocks. and holders OF
fndustrals Of all established reputation Will not
be forced to liquidate their holdings owing TO
the present excessive fotation Of new con-
Germs OF doubtful value Leather preferred
which pays per cent. has bright outlook
wabash preferred, Of the cheap railroad stocks
Chicago Great Western Kansas and Texas Is