Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1900-02-25


are just now taking an active part;
the public needing a fresh stimulus
before taking on new commitments,
and the large holders being commonly
preoccupied with other than purely
speculative plans. Men of large af-
fairs are frequently so pressed by the
enormous demands of legitimate bust
ness that speculative plans are for the
time being pushed aside or left to the
care of minor leaders and traders. This
is a remarkable state of affairs-that
men are too busy to speculate-yet
such is the fact Considering the
phenomenal improvement that has
taken place in all branches of business
during the past two years, the upward
movement in values has been only
moderate but substantial; and thus far
there have been no suggestions of the
speculative excuses which usually
mark the elimination of a period OF
prosperity.
The explanation of this moderation
in speculative activity is found in two
reasons: in the money market and in
public skepticism. The money market
has already proved natural and
wholesome restraint upon ill-advised
operators; while the public, through
experience and repeated warnings, has
taken hold very cautiously OF the
tempting but dangerous bait offered
by promoters in the industrials. The
extraordinary earnings of the new in
dustrials, especially those in the iron
and steel industries, are proclaimed on
bon nd In
but still the public refuse to buy with
any seriousness, and the great bulk of
this mass of new securities remains in
the hands of their original owners,
which is the safety of the present sit
uation. The large profits and excellent
dividend prospects for many of these
properties are readily conceded; but
it is as promptly seen that such profits
cannot be maintained indefinitely;
that they must lead to an immensely
increased output, to new competition,
and finally to normal profits, which
would mean essential loss to buyers of
any but the choicest securities in the
Industrial market. Nevertheless, it is
highly probable that an attempt will
be made to stimulate these stocks into
much more than recent activity, and
there is fair prospect of success when
monetary conditions favor; for hold
ings in the industrials are highly CEN
tralized, and should number of the
big leaders find it to their interest to
paratively little difficulty probably in
marking up values.
The most serious obstacle to a bull
movement at this time is the money
market. Rates for time loans show a
hardening tendency, which may con-
tinue for some weeks to come. Legiti
mate business requirements are in
creasing; loans have been largely ex-
banded during the last few weeks;
bank reserves are declining, and the
Treasury continues to absorb funds in
an exceedingly suggestive manner, so
that any large demand for money for
speculative purposes at this juncture
would materially harden rates. The
most encouraging outlook regarding
the money market is found in the
Transvaal war. 1t is quite evident that
the tide has turned in favor of British
arms, and that henceforth more favor
able news can be expected from that
to put up a determined resistance, an
early termination of the war seems
much more likely than month ago.
This should have an important bear
ing upon the European money mar
kets, for the war has been costing over
IS 900 900 per week, shutting off large
supplies of gold and threatening the
issue of big war loan, with all its
disturbing influences. That the war
has done so little positive injury here
is cause for self-congratulation
Nevertheless, 1t has had deterrent ef-
feet, and an early cessation of the
struggle would have beneficial in
1uence here.
The railroad situation continues en-
inently satisfactory. for earnings are
showing steady gains over the in
creases of last year, and every indica-
ton points to the maintenance of this
improvement for long time to come.
General trade is in excellent condi-
ton, and this week is witnessing the
largest rush of buyers to New York
that was ever known.
For the present, while we look for
an ultimately better stock market. we
advise conservative action until the flu
tire Of the money market becomes
more settled. The political campaign
is going to be less disturbing than
usual, and cannot be factor for some
weeks to come The passage of the
Currency bill will be, of course, a ia
vorable factor. but this has been al
ready largely discounted. Fluctua-
tionstin Third avenue and Sugar caus-
ed soho hesitancy in the Street" but
these Se only superficial disturbances;
tempo lily, however. their influence
Is mo Pr less hurtfui to the general
mark We continue to advise quick
turns for the present, and urge