New-York tribune., 1900-12-28
BONDS.
THE DAYS OPERATIONS N STOCKS.

The stock market was irregular. but net gains
were shown in the greater number of issues at
the close In the early trading the professional
element sold in expectation of a pinch in money
rates before the end Of the session. while the
fear ~ tighter money to-day induced gooo
deal of commission house selling. Sales we're
readily absorbed. and declines were not i'm
rortant The failure of the money market 10
advance led TO a strong speculation in the last
two hours. with active covering of shorts and
renewed outside buying. The banks are well
rrepsred to meet the January disbursements.
but II is still thought in some quarters that
there will be enough doing in the shifting OF
loans to-day TO force more or less liquidation IN
stocks There are many people who have been
waiting a month TO buy stocks on the expected
decline incident 10 the expected December pinch
fn money. but it begins 10 look as II the
stock and money markets will go into the new
year on easy rates and advancing values This
market is not following precedents The de-
rnand for the coal stocks for the granger issues
and for the cheap and medium priced securities
was active throughout the day. Business in the
bond market was enormous, total dealings ap-
preaching record figures. Final prices were near
the best late realizing sales having little ef-
feet upon quotations 30 l7I ID
Sentiment in Wall Street is cheerful, but in
many quarters reaction in prices is looked for.
A reaction would help the market and as stocks
have enjoyed long period Of advancing values
setback would not have other than a, healthful
influence upon speculation. Signs of reaction
VIII induce many timid holders to part with
their securities. but sales thus made will only be
absorbed by substantial market interests. This
is not the time 10 sell securities at loss, and
declining market should not frighten holders
into believing that conditions which favor strong
and active markets have been eliminated from
the situation. Broad minded people who believe
in the prosperity of the United States are buy
ing stocks. and they will not sell their holdings
at going prices or be frightened by passing de-
clines The distribution OF January interest and
dividends should be followed by further bull
tvity in stocks and bonds This should be es-
pecially pronounced in the medium and low
priced stocks which still selling many points
under their actual worth In settling the true
value Of stocks as measured by market prices It
should he borne in mind that conditions
create new standards. and that the real valua-
uon placed upon stocks and bonds a year ago
must be revised TO keep pace with the growing
business for 1900 and the prospects for 1901.
The present boom in stocks is not based upon
the creation Of Industrial securities and expecta-
tions. 1t is based upon conditions that have oc-
companied the development of industrial securi-
ties and upon the changes that been effected in
years. and which have enjoyed q conspicuous
position since the recent Presidential election
The boom Of 1929 carried unseasoned Industrial
stocks 10 fictitious prices. Since that time how
ever. value has taken the place of water in the
greater number Of industrial issues traded in on
the Stock Exchange. and industrial combinations
have presented satisfactory reason for their ex-
istence- In the industrial securities which made
such striking advances in 1899 little speculation
1lgG nj. -.
been railroad market Speculation however
VIII extend 10 the industrials and the bull move
ment will not reach it's limit until higher prices
are made for all the attractive iron and steel
stocks and miscellaneous issues. Good market
Judges believe that handsome returns will be
made from investments in stocks such as Fed
eral Steel issues. Republic Steel preferred and
American Car and Foundry preferred. Republic
Steel preferred has no bond interest ahead of its
dividends. the company has no mortgage
debt, while earnings are more than sufficient "a
pay its dividends twice over