The Providence news. (Providence [R.I.]) 1891-1906, 1900-02-12
STOCKS AND INVESTMENTS.
Looking Backward and Looking Fot
\ ward in the Market
A Review Of the Financial Year and Sug
gestIons as 10 the Outlook.

general from WHICH the following eN-
tracts are made.
To review the course or the local
stock market for the year is SIMPLY 10
tell a tale OF values Increased, ana !"
stand firm while panics in neighpor-
ing cities reduced the values OF STOCKS
listed there, even into the hundreds
Of millions OF dollars. Investors OF
Providence are fortunate IN TINS, tldt
their securities are SO well heid tla'
speculation is almost entirely ehinl-
mated from them. and the investment
basis practically governs their price.
Among the new corners 20 our inVeSt-
ment field is the stock of the AmeIN-
can Wooden Co. Many of our local
investors became acquainted win IL
from the fact that thfir holdings OF
the stock OF the National and ProVi-
dence worsted mills were given up IN
exchange for it,. and the great ACTIVITY
i'm the w,s,len BUSINESS led many others
TO buy This stock is now largely held
throughout Rhode Island. mostly by
people presumably well informed as
10 the wooden industry The outlook
for tne company is said 10 be eN-
ceedingly bright. Ii represents pow
erful aggregation OF capital and pro-
ductive ability. and il the Drains that
have developed these individual plants
and made of them the money eafners
that their statements show, can work
together far the best interests Of the
whole without friction or petty jealous
les Jhere would seem To be no reason
why this company should not continue
TO earn and pay its seven per cent.
dividends on it's preferred stock, and
lay aside "a handsome surplus for the
common. The element OF strength or
weakness OF all trusts" depends upon
two little things, internal harmony or
internal dissention.' These are the IN
f.fl -, f,.-f atafl slf
work in the economic world. that
mans ambition may have it's bounds
and that the transgressors of any OF
the fundamental laws Of business
should reap as they have sown. All
of our local manufacturing companies
listed on the exchange have reported
great business prosperity for the past
year. and are looking forward with
confidence TO "A continuation OF that
activity for the year just opened.
The subject of the
LIQUIDATION OF SOME OF OUR
SMALLER BANKS
is OF vital importance 10 many, affect
ing as II does practically three-quar-
ters of the Investing public Of our
state. The price at which these stocks
have been turned into the trust COM
panies is generally conceded 10 be bet
ter than the stockholders would have
received if the banks had attended to
their liquidation. We believe that we
are not far from right in estimating
that fully 10 per cent. Of the total num-
ber OF stockholders OF our banks are
women to whom the re-inVesting of
this money is serious business. They
will be prey 10 the wiles OF brokers.
and all sorts OF Investments viii be Of
fered to them, from copper mines TO
LIQUID air." and there are one or two
things that il would be well for them
10 bear in mind. First-Do not expect
high rates. for high rates and poor Sc
Curities have been companions ever.
And Second-As fHT as possible seek
securities that are listed or dealt in,
upon some exchange where public quo
tations are made from time to time
that holders may keep themselves post
( ed as TO the market course of their Sc
curities Until ones mind is well set
! tied as to what investments are best
/ 10 make, the national banks and the
/ trust companies. by their certificate of
I deposit and participation accounts. Of
| fer adequate security and fair rates OF
! interest. and in the majority OF cases
| il would be far wiser for those who Will
receive this money i'm payment OF stock,
TO so invest IT, rather than rush into
the security market and take whatever
may be found on the counters.
AS TO THE FINANCIAL OUTLOOK
for the year. there are reasonable
grounds for widely diverging views.
| our own ideas are not i'm accord with
| the majority of financial writer's A
! year ago in our circular letter. which
| we sent out with this little handbook,
| we called attention 10 the growing ten
dency to capitalize allied business in
! dustries, and ventured the prediction
/ that II would sooner or later lead to a
/ panic more severe than any we had
/ witnessed for many years. Other H.
nancial writer's took up the subject,
| and we found ourselves hopelessly in
! the minority: but i'm December the
panic came. and Wall street and State
street will feel its scar for months to
| come.
Wall street always leads the country,
! ana it's prosperity or adversely is, in
the course or time reflected in the
business world. Wall street has liqui-
dated. and in that liquidation we be-
! ucVc that the axe has been laid at the
root OF the great tree Of business pros
perity, ana sooner or later IL will
weaken and many Of It's branches viii
bend low under the burden of its un-
ripe fruit Commodity values must
now i'm turn liquidate. We believe that
the tide of business prosperity has
now passed ts flood and slowly at first
and almost imperceptibly it will ebb
away How fast or how slow this
operation may be. depends upon one or
two transitory influences. These two
factors may, and should intervene
temporarily to stay the tide. even as
a strong wind may for time told the
waters back: but it's final passing away
| will leave just 50 much more OF the
barren sands exposed 10 view. and so
much shallower water where depth
was supposed 10 be Flrst-The pas
sage OF the currency bill by Congress
! II taken advantage OF to it's fun extent
may mean an expansion In our curren-
Cy 10 the extent OF four hundred mil
| lions OF dollars. Like all stimulants
this may nave an exhilarating effect
FOR the time being and incidentally
lead 90 eXtrava giant speculation, for
tho means 20 conduct IL viii be avail
able; but fortunately all of the power
| Gal influences which are az work I'm the
| financial world. bear within themselves
the seeds of their own destruction. and
while money" i'm its idle days. may
J haunt Wall street, and play at hide
ADD seek with tho speculative issues
dealt in there. nevertheless. at the call
| ~ business prosperity. "a turns from it's
/ r'olic 20 the serious business of it's
| tie and I'm the hurry and hustle
| OF renewed period of business
activity II Is lost 10 view.
and when Wall street needs n most
II \. HN a -