The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1900-02-13
PREDICTS A BULuSH MARKET
Henry CIews Bases 1t on Easy Money
and Big Earnings.

New York. Feb. 12-Henry Clews re-
views the past week In Wall Street and
forecasts the future as follows:
Monday and Tuesday witnessed sharp
advances in the stock market; sharp
enough. in fact, to induce considerable
realizing on the following days. The ad-
vance, however, was based upon set
of conditions that are sdu in force; and,
as these conditions are exceptionally IA
vorable TO a bull market. it is hardly like
" that the big holders viii lose the oppor-
tunity of raising the market 10 still
higher level.
The two principal bull factors at pres
emit are easy money and large earnings
of both railroads and industrials. AS for
the money market, rates are easy and
likely TO so continue for some time 70
come. With time money at 4Q4i2 per
cent and first-eIass commercial paper at
similar rates, there is little reason for
concern about the money market. A
year ago the advance In stocks was
checked by the phenomenal creation OF
new combinations which locked up large
sums Of money and laid the basis for
the extreme stringeney that followed
later. No such conditions exist this year.
On the contrary, these funds have been
largely released and viii be re-employed
for no such purpose. because the making
OF huge new combines on such a scale
viii not be repeated in 1900. The war In
South Africa may eventually cause some
disturbance, but so far il has little or no
effect upon the money market, and its
injurious influence upon the stocks mar
ket has been fully discounted. British
reverses would now have little effect,
because England's resolution and ability
10 carry the war to successful issue
are fully understood An army Of over
3l0,Gc0 men is now in South Africa;
enough to more than overcome the adj
vantages OF Boer defense; and any fu-
ture reverses will be only temporary.
Even should Ladysmith fall, II would not
change the result, but only delay the war
and in1ure British prestige. Our own
stock market, therefore. is not likely TO
be seriously affected by British reverses.
though 1t is equally probable that Brit
ish success in two or three battles would
cause a sharp rise here. The money mar
ket IS likely 10 be favorably influenced
by the passage of the new currency bill,
which viii be voted upon next week. Its
passage is confidently predicted. As it
permits a desirable expansion In bank
currency, IL will prove an acceptable and
sound measure; a step forward IN our
system Of national finance, that has long
DEClL ACCCSSdAys anu NAlNh ACAAiONNo VIC
of the most serious problems of distrust
against which we have contended.
Concerning earnings, the most import
ant and strongest basis OF a good mar
ket, the evidence is all exceptionally sat
isfactory. Railroad prosperity is simply
remarkable In the third week of Janu-
airy IS roads earned 10 per cent more than
in 1853 which in itself was a period OF
good earnings. The great systems, such
as Pennsylvania, New York Central. the
Changers, the Paciflcs, and the Coalers.
all show handsome gains, and there is
every reason for anticipating their con-
tinuance, because the raIiroad draws its
income from many sources and is least
affected by local conditions; consequently
It possesses the advantage of a stable
income TO an exceptional degree. This
increase in earning capacity naturally af-
fects the low-priced stocks; especially
such as have dividend prospects or are
about to be put on a dividend-paytng ba-
sis Considering that American railroads
have had the water well squeezed out,
and that the character OF management
never stood higher, there IS the best of
reasons for preferring them over any 9TH
or popular investment Another point in
favor of the railroads Is that they are
only beginning to feel the benefit OF bet
ter rates. IN this respect DelnS Deult4u
general trade and the Industrials, which
were the first to benefit. Activity In the
latter has been resumed and has good
basis of reason The iron and steel prop
critics are making remarkable profits, as
confirmed by reports recently Issued by
the leading concerns. Already there is
less discrimination against the best indus
trial issues than formerly, and soma OF
these will undoubtedly yield god profits
10 early buyers; but both investors and
SPECTATORS will do well 70 deal cautious
" in this class OF securities until they
have become more thoroughly seasoned
THE probabilities suggest an irregular
but strong market during the next few
weeks. Every advance will Of course in
duce fresh realizing by those who bought
In the December panic and stimulate
fresh bear raids. These operations. how
ever. ought 20 prevent overbuying and
keen the market in a healthy condition.
Ii IS quite apparent that the big lead
ers have adjusted many OF their differ
ences and are willing TO permit, II not
aid. a bull market Now that conditions
are IN their favor, concert Of action Is
more probable. Until the situation
changes then, we can safely advise buying
on the sharp declines and selling on
oil good rallies -