The times. [volume] (Washington [D.C.]) 1897-1901, 1899-02-23
UPWARD FLIGHT OF STOCKS.
Higher Than Have Been Known in
Twenty NeOrs.


Twenty Years.
The price of railroad and other securi-
ties dealt in on the New York Stock Ex-
change is now higher, on the average,
than at any time in twenty years, perhaps
| than ever before. The prosperity of the
country and its outlook have induced in
the entire population a glowing optimism
and confidence such as has been seen rarely
in other periods of its history. The refiec-
ton of these conditions already is seen in
high prices. On Tuesday there was a hest
tation in the advance of prices and an in
clination in many cases toward recessions.
1t is a question of great interest what the
Immediate future of the market is to be,
and its later movements whether upward
or downward.
There have been many arguments that
$50 for Burlington, 1873 for st. Paul, and 40
for New York Central, and such prices, are
high enough, even for the period of pros
perity into which the country is passing
On the other hand, there are many who
believe in much higher level for all kinds
of securities, from the standard dividend
paying railway stocks to the common
stocks. dividend paying. of second rate
industrial corporations The prices OF
other railroads are cited by these buoyant
spirited people, and the question is asked
If the conditions are not now as favorable
as they were then. The present high level
was exceeded by twenty points in the
high dividend paying period twenty years
ago.
There was a disposition in some quarters
at the close of the market Tuesday 20
believe that a temporary setback AT least
was to come in prices today. After the
violent advances of the previous week the
declines in all directions. Occasioned by
heavy realizing, were pointed to as very
like the declines three weeks ago, after
the phenomenal last Monday in January.
1t was suggested that such a recession
might very easily, as it did on the former
occasion. lead to other realizing and fur
Their declines. break in violent mar
ket is often thus made, when it is no more
expected than it was on last Monday. And
extremists of this view believe that there
Will be no further boom of 1899 no
higher prices than those that have been
reached at this time They talk of huc-
tuations around this level for weeks per
haps. but Of no further steady advance of
the entire market level.
1t is doubtless true that many of the
sanest men in Wall Street incline toward
this view.
The bulls are more numerous and, on the
whole, more representative of all parties
and opinions. Also they number among
them some Of the best Wall Street critics,
active and amateur 1t may be stated on
excellent authority that Mr.. Flower be-
lieves in more prosperity and higher prices
Mr.. Keene also is believed to favor the bull
side in his operations. Some of the most
experienced market writer's predict that the
bull movement is not yet over, and that
the summer viii see quotations on railroad
stocks higher than they have ever been
before. These people generally look upon
the decline in prices on Tuesday as simply
small recession of no moment, from which
there will be quick recovery today and
during the remainder of the week
The arguments of the bulls are numer-
Gus, but chiefly they are based on the I'M
precedented trade balance in favor OF the
country, the great confidence OF all classes,
the cheapness of money, the immense rail-
road earnings. All these matters have
been discounted largely. but it seems i'm
possible that their effect can have been
wholly discounted in the advances in prices
that have occurred. II seems very doubt
full il they can have been realized by even
Wall Street.
The bulls argue that these conditions are
finer than anything twenty years ago. The
railroads, some of them, paid greater divi-
dends then than they do now, but money
was much more scarce than 1t is now. and
money rates much higher. Burlington paid
s per cent. dividends and sold at 10.
Money cost s per cent. Now Burlington
pays per cent. dividends. but earns s, and
will probably raise its dividend rates. Its
refunding plan will put its bonds on
3 1-2 per cent. basis. Money can be had
for from 3 to per cent The stock which
twenty years ago sold for IT'S now has not
reached $50. An analysis of the situation
of other railroad properties gives as good
or better showing.