The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1900-12-10
REuEN Of WILL STREET
DISAPPOINTMENT TO THE BULL IN
TERESTS DEVELOPED DURING
THE LAST FEW DAYS
"A PERIOD OF UNsETTLEMENT
The Money Market Shows Evidence
That Leaders Are Inclined to EX-
ercise Restraint On Quill"
SpecuIations.

rSSEW YORK, Dec 9-(SpeciaI 1.-THE
last few days have brought disappoint-
ment to the bull interests on the stock
exchange On that side of the market
it has been assumed that the great boom
following the election had come to make
some considerable stay. Judging the posi-
ton of the market from the new elements
brought into it by the defeat of Mr..
Bryan's disorganizing policies, this sam
guine expectation was not surprising;
for the public vote did in every way mean
very much for the permanent welfare of
the country. 1t is always difficult, how
ever, to judge what valuation Wall street
should Or will put upon any new fac
tors entering the market and practical
operators are not wont to defer realizing
until holders of stocks begin to wonder
whether prices are not as high as con-
dluonS on the whole warrant. The time
at which the veteran prefers to sell is
when the juniors are Sanguine about the
prospect of a further rise in prices; and
that policy almost invariably ends in a
break in the 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 a strict
and deliberate valuation of securities un-
der the improved conditions lately in
troduCed. 1t is the result of a rule usu-
ally pretty closely followed by trained
Spectators who understand how to fore
stall the unframed in taking profits.
Under these circumstances the late re-
alizing is not to be construed as mean
ing that the election boom has spent all
Its force and that prices will relapse
permanently to a level more or less ap-
preaching the aute-election range of
values.
The remarkably active buying at the
highest range of prices meant something
that is worth considering. 1t showed
that a large number of investors and
Spectators were strongly impressed that
the action had introduced important new
and permanent elements into the value
of securities-a conviction in which even
those who have realized their speculative
profits must also have shared. That
conviction means the introduction of a
StrCDg staying element into the market.
Under no circumstances would free
buying OF stocks be in order during the
three closing weeks of the year, which
are occupied with annual settlements and
WlndIng up Of accounts. This period IS
apt to be used by operators in depress-
ing prices in order to get securities for
resale when investors are putting their
January dividends and coupons into re-
investment. Ia view of this customary
course OF the market there is strong
bear contingent working vigorously to
hreak prices, which, along with The real
AH4AlS VI pIOIIIS, amount to q strong adj
verse pressure on the market.
Unoer these circumstances, the market
between now and the beginning of Jan
uary may be expected to be unsettled
and better adapted for off-and-on trading
than for continuous buying without re-
aIlz1ngs. But the risks are likely to be
with the bears" more than with well
projected bulls" The market is already
pelhg quite largely oversold, which is
NaIues, and may lay the basis for a
revival of the boom at the opening OF
the New Year. The mercurial Western
operators who bought so largely during
the advance are getting out Of their
holdings most incOntinentIy; but as they
are above all adept in the detection and
following Of market currents and seem
to have a preference for 'bulP' opera
uons, they may be among the first to
accept an upward turn in the market
should that occur. In any case, it NAV
De expected that New York will easiIy
control the market. The Western cen
terS can only follow the METROPOLIS
London is finding it the safest course
to accept the lead of the home market
rather than take Independent action I'D.
on It's own imperfect information Be
sides which, the European money mar.
kets are becoming so dependent on ours
that the foreign SPECTATORS have nc
4OnSei any advantage from their con.
dguity TO The great lending centers
Upon the whole, therefore, should il
prove that, after giving full vent to the
current reactionary drift. there still re-
mains majority sentiment in favor OF
promoting a return to the specu,atior
Tor higher prices, it is not apparent
what serious obstacles are likely 10
stand IN the way. For the moment
however, the prudent course for specu.
lators is to buy on the drops and accom-
moderate profits, and for investors Il
take in securities On moderate conces
sons in prices.
The money market shows evidence
that lenders are disposed to appIv re
straint upon excuses in ebuIT' snacn
lauon. The large holders of loanabI,
funds see in the rising tendency of tn,
european money markets an opporfu.
nifty Ter using their funds at a good
rate of interest whilst at the same me
holding speculation within wholeson,
limits. At a later stage, money may h,
expected to be so abundant that sucI
restraint will be less easy than if i
now but, in the meantime, the feve
among the ~Sanguine outsiders will hav,
abated. Under all the circunosta noes
symptoms indicate, to my view, the nrob
ability Of a prolonged healthy conditio,
of the securities market; prices how
ever, are likely to be irregular and q
tunes saggy from now until the end n
the year Meanwhile, quick in-and-ou
turns are the most desirable to make.