New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-01-30
THE WEEKS OPERATIONS IN STOCKS.

Total IN Ell issue. Observation-Disclosures 81 S4s 900
THE WEEKS OPERATIONS IN STOCKS.
Good stocks are being absorbed their in
vestmen; return and the expectation that in
the future that investment return will be
considerably larger than at present. The low
priced stocks that are not now in the dividend
paying column are being bought because the
prospects that they too will be in the dividend
list al no remote period growing brighter
every day, reflected in increasing earnings
and general business prosperity. The dividend
paying shares will find their final level in money
market conditions, and here IT must be borne In
mind that the practical certainty Of increased
dividends will advance the market value Of many
stocks to their new dividend level before that
level has actually been marked by an increased
dividend declaration. Burlington and New
York Central furnish examples in connection
with this among the railroad stocks, while In
the industrals Peoples Gas and Federal Steel
preferred may be cited. Is Burlington on its
present dividend selling high. and II expectations
become general that IT will move into the per
cent class will II be initiation TO advance Bur
lington to 175? II Federal Steel preferred is to
pay 6 per cent, and 1t can be confidently
serted that It will pay this amount in the cur
rent year. Will par be an exaggerated price for
the stock?
With money ruling at its present easy rate
and the country's supply Of lendable funds
constantly increasing, the price OF stocks.
measured by their investment yield. has
not reached the average level Of the money
market And until the dividend paying stocks
are selling on a basis measured by their invest
ment return in relation TO the cost Of money
there need be no uneasiness over the seemingly
high quotations now prevailing. When an ex-
cessive speculation carries prices beyond the
point warranted by actual worth and money
rates then the limit Of safety will have been
passed. Because stock market trading is enor-
nous, record breaking and exciting there Is
not sufficient reason in these factors alone to
Justify the criticism heard in many quarters
that speculation has become wild and prices are
in danger OF topping over AS a matter Of fact,
the recent dealing In stocks while Of unprece-
dented proportions has been orderly and
sentative and has left the market technically
sound. Transactions are large, but there are
thousands Of people operating where year ago
they could be measured by the hundreds
good-sized proportion Of the present buyers
are people who are taking stocks out Of the
market with their own money. Investment
forces rather than speculative. have been re-
sponsible for the course Of the market TO date.
The bank statements prove this. But II Is not
difficult 10 find actual evidence Of this In
brokers' offices and in the known character of
current transactions II has been runaway
market in point OF dealings but not in the char
acter Of trading. except, perhaps Monday
last. Professional operators who would rather
sell stocks short than operate on any other line
have discovered TO their sorrow that the market
is not honeycombed with weak accounts or sus-
= he inn ~ bpnr poap MI
Iation. The public operator should not deude
himself. however with the idea that there will
never be a setback, and that one stock is as
TO advance another. Speculation will
doubtless induce excess OF enthusiasm and
move into dangerous channels before the year IL
over. and the small trader should therefore bear
in mind that caution now may prevent losses
later on. The people who buying stocks to
hold as investments have nothing to fear from
the declines that transportation will bring
about. They may rest assured that they will
continue to receive good return on their
money. while the actual worth OF their securities
Will gradually increase in value. The factors
underlying intrinsic worth are now too we'll
known TO need enumeration 1t Is pertinent TO
add. however that in the week just closed trade
conditions as reflected in bank clearings and
railroad earnings showed a stronger situation
tHdH III any corresponding tline on record
Trading, both in stocks and bonds was
heavier than in any preceding week in the his
tory Of the Stock Exchange. the sales Of stock
amounting TO 7,200247 shares and OF bonds 10
S37,34S,O0O par value. The speculation on Mon
day started in somewhat wild. but the we'll
directed efforts Of conservative brokers to check
the upward rush Of prices resulted in placing
the market a more healthful basis while not
weakening In any respect the structural condi-
ton Of speculation. The buying power Of the
market is well sustained II It were not the
danser-point might be considered near.