Omaha daily bee., 1900-12-10
Due TO TAKING OF PROFITS
Break in Values in Wall Street the Result
Of Such Selling.
VETERANS ARE sKIMMlNG THE MARKET
Strong Adverse Pressure Well with
stood, hut Unsettled Conditions
Are Expected for Rest Of
y the Year.

NEW YORK. Dec. 9.--(special Henry
Clews, head Of the banking house OF Henry
Clews g. Co, writes OF the situation in
Wall street:
The last few DAYS have brought disap-
pointment TO the bull interests on the Stock
exchange. On that side of the market II
pad been assumed that the great boom fol-
lowing the election had come to make some
considerable stay. Judging the position of
the market from the new elements brought
Into II by the , defeat OF Mr Bryan's dis
tion was not surprising, for the public vote
Old In every way mean very much for the
permanent welfare OF the country. II IL al
ways difficult, however, to Judge what vau-
alton Wall street should or will put upon
any new factors entering the market and
practiced operators are not wont to defer
realizing until holders OF stocks begin to
wonder whether prices are not as high as
CONDITIONS hSs ,s on the whole warrant: The time time
the Juniors are sanguine about the pros
pect OF a further rise In prices and that
policy almost Invariably ends I'm a break in
prices 1t Is the adoption of these tactics
that explains the downward drift of the
last few days. The break has been In no
sense the result of strict and deliberate
valuation OF securities under the improved
conditions lately introduced. IL is the re-
by trained spectators who understand how
TO forestall the unframed In taking profits
Under these circumstances the late realiz-
Ing liz not to be construed as meaning that
the election boom has spent all it's force and
that prices will relapse permanently to
level more or less approaching the ante
election range of values.
The remarkably active buying at the
highest range OF prices meant something
ths.t Is worth considering. IL showed that
a large number of investors and Spectators
were strongly impressed that the election
had introduced important new and perma-
nent elements into the value of securities, n
conviction In which even those who have
Iealized their speculative profits must also
have shared That conviction means the in
nf atr afn nNsfn ,nt,t int
the market IL rests upon reasons so tangi-
BILE and real that those who have bought
securities upon them will be likely to hold
them tenaciously, rather than confess that
they have erred In their estimate of the
new factors that have taken possession OF
the Investment situation. IL therefore does
not appear likely that the realizing done
by considerable number who speculate by
rule, rather than on the intrinsic merits OF
situation, Will be followed by any consid-
erab)e portion of those who are strongly
impressed that the intrinsic value of invest
ments stands materially higher than IL did
before election. Should this class OF holders
stick to their convictions It is not easy to
see what stands In the way of a revival of
come until we get fairly into the new year.
Under no circumstances would free buying
OF stocks be In order during the three clos
Ing weeks OF the year. which are occupied |
with annual settlements and winding up of
accounts This period is apt to be used by |
get securities for resale when investors are
putting their January dividends and |
coupons into reinyestment. In view of this |
customary course of the market there Is a |
strong bear contingent working vigor- |
ously to break prices, which along with |
the realizing OF profits amount to strong |
ADVERSE pressure on the market.
Inning for the Bears.
Under these circumstances the market be-
tween now and the beginning of January
may be expected TO be unsettled and better
continuous buying without realizings. But
the risks are likely to be with the bears
more more than with the well protected bulls.
The market is already being quite largely
oyerso!d. which is likely to have a steadying
enect on values, and may lay the basis for
\ revival OF the boom at the opening of the
new year The mercurial western operators
who bought 30 largely during the advance
are getting out OF their holdings most in
In the detection and following of market
and seem to have a preference for
rst to accept an tn Inward tuPs m ia tbe mar sne
ket should tina: occur. In any case 1t may
be expected that New York will easily con-
troll the market. The western centers can
)nly follow the metropolis. London Is find
ng II the safest course to accept the lead
IF the home market, rather than take inde-
ormation. Besides which the European
money markets are becoming go dependent
rha tne fSTSn
guity to the great lending centers. Upon
he whole therefore should 1t prove that,
tfter giving full vent to the current re-
dictionary drift, there still remains a major
ty sentiment In favor OF promoting a re-
urn to the speculation for higher prices. 1t
8 not apparent what serious obstacles are
likely to stand In the way. For the moment,
however, the prudent course for specula tors
8 to buy on the drops and accept moderate
,rofts, and for investors to take In securi-
les on moderate concessions in prices.
After all there is some ground for con-
.ratulation over the check to the eXtraordi-
nary Juror of speculation. Added to the
reasonable gratiication over the business |
'enehts to accrue from a continued pursuit
u sound national policies there has been a
arried with IL n liability to running into
xcesses of speculation for which We might
lave to atone by n violent reaction. At
me time there seemed to be an exposure to
ators and money lenders alike conservative
nd contributed In quite a degree to the
eallzing that has ocC Curred. II is gratifying {
o hnd such considerable portion of the
PROFESSIONALS so judicious and self contained |
nd the fact Is calculated to bespeak conf
ence In the future course OF the market
nd TO Keep the sangune within the bounds
4 moderation.
The money. market shows evidence that
enders are disposed to apply restraint upon
xcesses In bull speculation The large
folders OF loaneble funds see in the rising z
or the European money markets
n opportunity for using their funds at n | !
ood rate of interest whilst, at the same
ime. holding speculation within wholesome {
mits. AT later stage money may be ex- |
ected to be so abundant that such re- s
tralnt VIII be less easy than II Is now but
n the meantime the fever among the
II circumstances symptoms indicate, to
ny view. the probability OF n prolonged
ealthy condition of the securities market;
rices, however, are likely to be irregular {
the year. Meanwhile quick in-and-out I
lrns are the most desirable to make