The times. [volume] (Washington [D.C.]) 1897-1901, 1900-02-12
STOCK MARKET GOSSIP.
Opinions ne to the Immense Increase
I'm Loans.

Opinions ne to the linn cnse Increase
I'm Loans.
NEW YORK, Feb. 1.-THE closing OF
the week In the stock market, stupid and
dull, after a fine buoyant opening. WAS not
a surprise, though it was disappointment.
The bulls, like the bears, always expect q
reaction of a point or two after move
ment OF six TO eight points, but, never
theless, they are always trihe disappoint-
ed that all rules are not set aside for each
little boom. The reaction is not TO be de-
plored, however. II was natural and will
prove TO have been beneficial in the eiimi-
nation of the weakest margined accounts.
The outlook now is excellent. Careful
observers o. the market would not be in
the least surprised at a revival of business
Immediately on the resumption, OF the
market on Tuesday. They are OF the opin-
ion that good deal of the money dis
bursed on the LIST of February and divi-
dends has been reinvested in stocks rather
than In bonds as the latter pretty well
discounted the more favorable money mar
iet. The rapid expansion in the loan ac-
count in the past four weeks is pretty
good indication that the most important
interests IN Mall street nave
themselves with funds and are prepared
TO take the market up 10 much higher
level Many plans that syndicates and
railroad arrangements calculated upon an
nouncing the first of the year were post
poned on account of unfavorable condi-
lions prevailing at that time. These
plans, however. were not abandoned, and
within the next thirty days important an
nounctments may be expected.
The bank statement on Saturday broke
all records with the enormous change
which il showed in loans. The Significance
Of the 81 .000. 600 increase in this account
may be appreciated from the fact that it
exceeds by nearly $4,000, 600 the largest
total recorded for any single week in 1899.
II is considerably more than a third OF the
aggregate expansion which occurred dur
ing February and March a year ago, when
the industrial syndicate borrowing was at
its height This astonishing result is an
index of the wholesale manner in which
operations for the rise upon the stock ex-
change have transferred securities into
speculative hands. Nor is there any reason
other than this which will suffice to ex-
plain the total increase of s43, 600 in
local bank credits which has taken place
since the middle Of January The surplus
reserve, as expected. falls off nearly
s., 600, 900. The decrease has been part ally
checked by further gain of 100000 in
cash. which bears out very closely the es-
Inmates of the interior and subtreasury
movements published in this co umn yes
terday.
Henry Clews says of the situation:
Concerning earnings. the most impor
tant and strongest basis of a good market,
the evidence is all exceptionally satisfac-
tory. Railroad prosperity is simply re-
markable. In the third week of January
sixty eight roads earned Is per cent more
than in 1899. which in itself was period
OF good earnings The great systems. such
as Pennsylvania, New York Central, the
gTangers, the Pacifcs. and the coalers. all
show handsome gains, and there is every
reason for anticipating their continuance,
because the railroad draws its income
from many sources and IL least affected by
local conditions; consequently it possesses
the advantage OF stable income TO an ex-
ceptional degree. This increase in earn
ing capacity naturally affects the low
priced stocks; especially such as have
dividend prospects or are about to be put
on dividend-paying basis. Considering
that American railroads have had the wa
ter well squeezed out, and that the char
acter OF management never stood higher,
there Is the best of reasons for preferring
them over any other popular Investment.
Another point in favor OF the railroads is
that they are only beginning TO feel the
benefit of better rates; in this respect be-
ing behind general trade and the indus
trials. which we're the first to benefit,
Activity in the latter has been resumed
and has a good basis Of reason. The iron
and steel properties are making remarka-
BILE profits, as confirmed by reports re-
Gently issued by the leading concerns.
Already there is less discrimination
against the best industrial issues than
formerly, and some of these Will undoubt-
eddy yield good profits 10 early buyers;
but both investors and spectators WILL do
well to deal cautiously 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. however, |
ought TO prevent overbuying and keep the |
market in healthy condition. 1t is quite |
apparent that the big leaders have ad |
justed many of their differences and are |
willing to permit, IL not aid, a bull mar |
ket. Now that conditions are in their ia
vor. concert of action is more probable. |
Until the situation changes, then, we can |
safely advise buying on the sharp de-
clines and selling on all good rallies"