The times., 1900-12-31
STOCK MARKET GOSSIP
Outlook for the Beginning of fhe
New Year in Speculation.
Conditions All Favorable to Higher
Prices-Cnenp Money n strong Bull
Fnctor Careful People Taking
Profits on the BuIges. However.
and Not Increasing Their Lines.

NEW YORK, Dec 29-It is probable
that the last market day of the year will
repeat the record of The past week and
month that prices VIII continue to ad-
vance, and that the year will be usher
ed out with its besl level. More, it is
extremely likely that the first market day
of the new year will also be full oil
strength and advancing prices. Some peo-
pie expect a reaction shortly of several
points. and of course they take the most
reasonable view, judging the market by
ordinary standards. II is possible, how
ever, that the upward movement will con-
finue for some time longer, with only
such short periods OF recession as that OF
Friday.
The failure of the expected reaction to
materialize may be partly attributed to
the continuous taking of profits which
we have been seeing each day. This is
one of the best safety valves to so eXten-
sive speculation as is taking place at
present There is a certain amount OF
bald manipulation evident in the stock
market and it is highly desirable that 1t
should not be successful TO the extent of
encouraging overtrading by weak people.
The irregularity of the market and the
frequent reactions in prices serve to weed
out weak interests and TO discourage
reckless buying healthy check was
given to the rank extravaganza of stock
speculation Immediately following the
November election. The recovery since
many directions but it has not taken the
aspect of continuous advance. Frequent
setbacks have occurred in consequence
of profit taking, and the shifting of ac-
counts, which has been a marked feature
of late, tends TO preserve the general
stability of the stock exchange fabric.
Intrinsic conditions are excellent as
has been said many times before. All
lines of business are in a great wave of
prosperity The amount of money re-
quired to carry on the increasing volume
of commercial transactions has been more
thGn adequate.
The plenty of money has been due in
part TO the increase in national bank cir
culation resulting from the financial
measure enacted by Congress last March.
There has also been a notable increase
in the country's stock of gold through the
production of domestic mines and receipts
from the Klondike, Australia and, to an
extent, from Europe.
In the industrial field there has been
during the year a readjustment of values
That is, the securities of companies based
upon manufacturing enterprises that are
dealt in on the stock exchange have been
scrutinized more carefully than when they
were first issued, and the process OF di-
gestion has resulted in a noteworthy re-
vision of values. That process is still
going on, and should the public view prove
TO be too severe or pessimistic in some
cases, that error will doubtless be recti-
fed in due time.
there has been steady improvement
throughout the year. Both Wall Street
and the public outside of 1t have become
so accustomed TO transactions OF great
magnitude that 1t is possible that neither
has yet fully appreciated what is being
and has been accomplished in the direc-
tion of establishing a community of inter
est between all of the railway systems
of the country This means stable and
profitable rates without the imposition of
undue burdens upon the traffic, greater
economy in operation, and, finally, better
returns to the great army of investors,
both large and small.
The circumstances Inat nave Deen DFleHy
touched upon are chiefly responsible for
the recent continuous advance in the
prices of railway securities, particularly
as they tend TO ensure the safety of the
interest-bearing obligations of the rail-
ways and foreshadow increased returns
upon the share capitalization. Without
doubt the acceptance of this view is large
ly responsible for the advance last week
in the prices of such stocks as st. Paul
common, Delaware and Hudson, New York
Central. Pennsylvania, Rock Island. Con-
solidated Gas Northwest, Illinois Central,
and other stocks that may he regarded as
belonging in the same class.
There has also been an enormous busi-
ness in stocks that have not yet attained
the distinction upon the dividend paying
basis that is enjoyed by those enumerated,
and also in others of a more purely spec
ulative character. A good deal of the
buying is uaquestionably in anticipation of
the extraordinarily heavy January 1 dis
bursements. The movement has naturally
extended to the bond market and has re-
suited in great activity at advancing
prices.
These conditions have made the ad
vances already attained. and they promise
continuance of the advance.
New York stock Market.