The times., 1900-04-09
STOCK MARKET GOSSIP.
Facts Regarding the Bank state
nlcnt ut First Overlooked.

NEW YORK. April S.-wall Street people
who were at first inclined to regard The
bank statement Of yesterday as an unfa-
vorable one from the fact that decrease
in reserves was caused by a heavy increase
in loans. came around to the ssuer view
last night that the showing is in no way
bad one. 1t should be remembered
that SIS GOO ooO was paid to the New Yc-k
Central during the week for the taking
up OF the new stock issued at par. Wall
Street houses paid over this amount for
their customers and when the new stock
is issued it viii be taken up by the cd
stockholders aud the cash returned to the
brokers. whose borrowings in this cen
nection had much to do with the increase
in the loans shown in the statement The
actual cash holdings Of the banks in
creased as has been said nearly s. 000.
00o. The increase in loans not to be attri-
buted 10 this cause shows very clearly
that spectators are gaining confidence
and embarFing ON the large plans that
have been held back heretofore b. the fear
OF tight money.
The investment in stocks has not come
thorities believe that prices viii reach
higher aad higher levels during the com
ing few months. Reactions arc 10 be eX-
peCted in every bull market. and people
who trade on small margins should be
careful in making new ventures after
rapid advances. II is not impossible that
a reaction will come some time during
this week. though this is net by any meafs
certain. Advantage should be take1 of
declines to buy good securities.
street authority said yesterday: "A
consideration. not 10 be lost sight Of is
the scarcity Of good investments EXCEPT
at prices almost prohibitive to the present
buyer Government bonds and gilt-edged
securities are so firmly held, and at su,h
high figures, that new buyers. whether
for investment or speculative purposes.
are obliged to turn to the newer issles.
Hence, the preferred stocks and Iow-pric d
bonds Of recognized railroads and some
Of the industrials have been receiving in
creased attention. Government bonds are
so high that owners are frequently tempted
10 shift their holdings into securities that
yield larger returns. and the same a2Il es
in some degree to other high-c.ass in
yestments. Not a few shrewd capitalists
are parting with fancy issues and takirg
some Of the cheaper investments having a
future
There is still another element that is
frequently oyerlooked-the unusually large
sums that must come on the market for
investment during the next six or twelve
months. Increased dividends and activity
in business mean not only larger expendi-
lures by the public and the stimulus Of
new enterprise but also larger sums seek
ing profitable investment. There is still
one more element TO be considered and
that is the attitude Of the big holders Of
stocks. For several months the market
has been held back by the differences and
skirmishes Of conflicting interests Until
these were settled cooperation among the
big leaders was impossible. Recent events
have cleared the financial atmosphere of
some Of these clouds and harmony once
more prevails, so that the heavy opera
tors are now free to follow their convic-
tions- These, it is almost superluous to
state, are on the bull side and there is
good reason for believing that the mar
ket is now receiving strong inside sup
port and will continue TO receive II for
some time to come.