New-York tribune., 1900-11-14
BONDS.
THE DAYS OPERATIONS IN STOCKS.

healthful reactionary tendency developed in
Yesterdays stock market, and at the close Of
business the greater number of issues showed
net losses as compared with Mondays final quo
tatons. Dealings were again heavy, although
well under the enormous record of Monday.
Sales. for profits and bear pressure were respon-
sbe for the decline, but the vast amount of
stock offered found ready buyers-buyers who
had been waiting for reaction, and who in
many cases paid for their purchases with their
own money. In certain quarters it was assumed
that the decline in prices recorded the end Of
the bull movement, despite the fact that some
of the strongest financial interests in the Street
were active buyers. The current market can
not be judged by ordinary standards and 1t is
therefore not safe to base predictions OF Pc
Rod Of saggiag values the records of past
bull speculatons. 1t looks as If the people who
are banking a season Of lower prices are
doomed to disappointment, especially those peo-
ple who now assert that the rise in values has
reached its limit, and that the bear side Of the
market Will be the safe side for several months
10 come Bull markets founded conditions
such as those now prevailing cannot be de-
strcved by bear manipulation. Declines yester-
day ran from one to three points: in few cases,
notably Pacific Mail and American Linseed pre-
ferred, the loss was greater. Excellent buying
was reported in the standard shares. including
Union Pacific preferred The close was active
and weak.
Stocks have not reached a dangerous level
despite the sharp advances and enormous activ
ity since the election. In the greater number of
cases securities are selling under their actual
worth, and an important sustained decline Is
not likely to develop until prices reach point
well above real value. Profit taking sales are
in progress every day, but the strength of new
buying offsets to a great extent the influence of
sales upon quotations. Buying orders come
from all parts of the country. Investors
throughout the land convinced that condi-
tons warrant the purchase Of stocks. while
many purely speculative interests believe that
they will never have a better chance to make
money the bull side of the market. Specu-
lators are using caution, despite their enthusi-
asm So far transactions have not reflected
wildcat operations, while in a good proportion
Of the dealings actual buying has been the
feature That is. people have paid for their
stocks. No should buy stocks in a big bull
market small margins as markets Of this
kind generally accompanied by sharp re-
actions. In Mondays great market. when most
stocks showed net gains for the day. there were
many instances in the course of trading where
and per cent margins were wiped out in a.
few minutes, and where 5 per cent margins were
considerably reduced by quick declines. result
Ing from heavy selling pressure Recoveries are
certain to follow reactions but brokers do not
calculate on recoveries and if margins are in
danger for a few minutes only the stocks are
sold out, unless increased margins are imme
diately forthcoming. A 10 per cent margin
ought TO be the minimum in these davs NJ hip
fluctuations
American Linseed, Industrial stock which
has received much favorable comment of late
suffered a severe decline yesterday owing to tho
report that the directors will pass the dividand
on the preferred stock Tomorrow If the divi
dend is passed it will not be because # has nor
been earned Indeed the company not only has
earned It's full preferred dividend but il shows
Tor the current quarter a large surplus on the
common stock. II is said that the C,btcsa
directors believe that the large increase in the
companys business demands additional work
ing capital. and that the best way to raise the
money is TO use surplus earnings instead of
paying dividends This movement naturaIlv oF
fords spectators chance to depress the price
TO the intrinsic value Of the stocks Managers
earnest in their efforts TO improve the real value
leaders in this market The long established
issues, such as Peoples Gas, and the newer
ones. such International Paper preferred
should appeal to investors who want safe in
vestment and a good investment yield OF the
railroad stocks the preference issues of the reor-
ganized properties have had little advance, and
IT is thought that they will figure as active
favorites before the end Of the year.
THE DAYS OPERATIONS IN BONDS