New-York tribune., 1899-03-27
THE ,,l.EKS OPERATIONS IN STOCKS.

THE N1,EK'S OPERATIONS IN STOCKS.
Big margins will be required in the sprns
market and IL is pertinent to remark at this
time that the necessity Of such margins appears
more convincing every day. This statement is
not intended to convey the impression that a
bull market is unlikely on the contrary. it is
because q big bull movement is expected that
large margins aye suggested. for in an active
advancing market AZ a time when the values
q many stocks are we'll up to their limit war
,s,rel by actual merit wide fluctuations occur
md better financial protection for ones line Of
long stocks or short stocks Is required than
in tunes Of dull markets and cheap prices. 1t is
the general belief in Wall Street circles that
withn the next sixty days all conditions re-
naming favorable. there viii be a heavy specu-
latiye movement on the Stock Exchange, in the
course Of which prices will advance TO a ma
ieriaNy higher level than that prevailing al
present And il is also believed that occasional
slumrs viii be a part Of the expected bull mar
Iet.
Fortunately the banks have grown suspicious
Of the speculation in industrial stocks that
have an uncertain value, and they have also
shown a worthy disposition 10 check the ex-
cessiye hotation Of new Industrial issues that
recently have been turned out by the millions
A contraction in loans in the last few weeks
careful discrimination in accepting industrials
as collateral against loans. and a higher rate
for money. have accomplished a useful purpose
IN subduing irresponsible speculation. while TO-
cussng attention upon the dangerous situation
that might result from initiation and manipula-
ton. The repressive influence Of the money
market upon unwise speculation is beginning to
stock y
a decreased movement in the industrials OF
fictitious value and in a renewed buying move
mont I'm the railroad and industrial issues OF
,,eri. In the last three days Of the week evil
darc4 of returning public activity In stocks
accumulated rapidly and predictions were nlaue
that ne spring boom in stocks would not walt
for the arrival of April. but begin operations
Z. once The Industrial position Of the country
warrants confidence IN American securities, ana
Will the market values Of many issues nave
reached points which appear representative Oh
the actual worth Of the properties concerned
hieher level doubtless will he reached in every
heh-priced stock Of merit on the lst
T. IS well for the market that the recent ma
nlnulaton in Sugar and kindred issues came al
a time when stocks were strongly held When
underlying conditions We're strong and at time
when business men were too firmly impressed
with the countrys prosperity to be frightened by
wild fluctuations in the speculative markets
The losses sustained in Sugar Refining specuia-
tion have been individual rather than general.
The holders Of legitimate railroad and industrial
stocks are not mixed up in Sugar deals or in To-
bacco deals. and it is not likely that any hoIder
a. leading investment issues will be so foohsh as
10 Hquidata his holdings for the sake Of taxing
par, In the dazzl ne speculation that makes pos
su.e ,or and twenty point movements in day
in certain industrial securities. II stocks mad
been widely distributed among weak pubhc
holders who think > per cent margin adequate
for all times the effect Of the Sugar speculation
vould have LEFT an unfortunate impression upon
the market while possibly proving serious in
telil,erce With spring activity in all issues
7he tendency of the money market should he
toward a lower level in the current week ana
after April 10 rates should become relatively
easy Tho country is rich il ready cash. Capi-
tal In great abundance is still idle, despite the
growing Industrial expansion. and in the spring
ard summer % the current year the presence or
60 much idle money should be forcibly reflected
in the market for stocks and bonds. Railroad
earnings are making striking gains in the South-
west. ard as that part Of the country has grown
UP 20 the mileage While new lines have not
been established the Southwestern railroad Sc
curites ought to become active favorites on the
Stock Exchange 4 hopeful sign In connection
with the railroad world IS reflected In the more
harmonious relations now existing between the
Railways and the Interstate Commerce Commis-
sion. shown in the conference held in wash
ington last week. and also In the apparent de-
termination Of railroad managers TO treat one
another with better business conscience in the
matter q maintaining rates powerful infu-
ence In this respect IS the tendency toward rail-
road consolidation and the concentration Of con-