The times. [volume] (Washington [D.C.]) 1897-1901, 1900-01-01
new Year SPECULA1lONS
Considerable 0ptimi m Colors Stock
Market Gossip.
Conditions Favorable for n Substan-
tiaI Advance i'm Prices Generous
Purchases of American Securities
Observation-Disclosures to be Gained
from a Triumph of British Arms.

NEW YORK, Dec 31.-Optimstic fnan-
cial people point to two conditions of the
present market which are believed to be
extremely favorable TO active speculation
and advancing prices during the hrst
month of the new year. The reinvestment
of interest and dividend payments will
create strong demand for stocks. The
present low prices Of securities compare
lively at least, will incline present holders
of stocks. who are in large part the i'm
portant people, not to sell. The situation
is one of large demand and small supply
in a marked degree it is suggested. and
the result can only be a re 'nction Of the
demand or an increase of the supply
through general advance. 1t has been
one of the most notable features of the
past weeks market that very few stocks
are fer sale at the present level. Every
purchasing order either for the bears. who
have wished TO cover, or for the long &C
count. has put prices up quickly.
The money situation will euter into The
equation less assertively than heretofore
but it seems probable that rates will be
fairly easy and that the tendency Win be
toward betterment constantly. The banks
have provided for the payment OF divi-
dends and interest largely, and with the
beginning of the market week this money
will begin to circulate. Londons easier
financial situation probably will result in
cessation of the outflow OF gold The
money received during the holiday business
in Western cities will be sent to New
York for investment or as loans.
London's better feeling was illu. tTate1
during the past week in fairly generous
purchases Of American sec lrities. II this
London demand continues il will aid the
upward movement materially with the
present lessened supply Of stocks in the
market.
The outlook in the general situation
fayors The market, as deyelopmen are
likely to be good rstk-T than the other
thing. II is probably tire general impress
sion that the British Boer war will from
now on gradually show better fc- the Bit
ish armies. A decisive victory for CIR, at
Britain would. Of course. be a strong bl.l
argument. The bus.n IS news N this coun-
Try will be good if the coTnmerCiai agencies
are to be believed: Rsilway aad indisu ial
company earnings statements viii be cd,
and many securities will be put on the div
i6end Int for the first time.
. Such being the prospects for January, Il
is quite probable at least that the PROBES
sioual element Will buy stock in the i'm
mediate future to discount the Situate
In commenting upon the financial status
Mr. Clews says; The year closes with
business in exceptionally fine condition.
Thus far there are no indications OF over
trading or overexpansion OF credits. Mer-
chandise values are on a higher basis, and
labor is everywhere well employed at good
and in numerous cases higher wages. The
phenomenal activity in the iron trade still
continues and shows no signs of abate-
ment- Production Of pig iron, enormous a.
il is. has failed 10 outrun consumption,
which is receiving a tremendous stimulus
from the many new uses 10 which IRON is
applied, and through filling the gap caused
by years of economy Many of the big
steel companies are now running upon or
ders received some time ago. which will
keep them busy until the middle of 1900.
il not later. 1t is known thar numerous
contracts are now held up pending lower
prices so that the prospects of continued
activity are excellent. Other lines of in
dustry also show great pressure of orders,
all OF which means continued large earn
ings for American railroads during the
coming year. For railroads the outlook is
especially encouraging. The majority of
these properties are now organized upon a
satisfactory basis; our best roads are ia
better physical and financial condition than
ever before; earnings are constantly in
creasing while the train cost per mile is
as steadily decreasing. Labor has already
received a share of present prosperity, and
stockholders have a right to expect better
returns. Several Of the cheap stocks are
now approaching dividend basis and
promise to become speculative favorites."