The times., 1901-05-20
STOCK MARKET COMMENT
The Upward Movement in Prices
Again Strong.
Street Belief That the Level May BE
Advanced Nearly to That before
the Pnnic-The Prevalence of Bull
iSei Tips - MIR. MorEan's stocks.


Advanced Nearly to That before
the Pnnic-The Prevalence of Bull
is.i "Tipsv - Mr.. Morgan's stocks.
NEW YORK. May 19-FoIlowing the
scrutiny of accounts on Saturday, May II.
when the exchanges were closed. a great
wedding out of the market occurred last
week 1t required several days for bro
kers to dispose of the weak accounts and
get matters adjusted 10 their own satisfac-
ton, but as soon as this was accomplished
the brokers the mseIves began to assume a
more bullish tone and to talk with more
confidence. Bull tips began to emanate
from every office, and the announcement
of a truce between the warning factions in
Northern Pacific also had a stimulating et-
feet.
The volume of trading has been compar-
atively small from day to day, as the pub
lie has not yet come back into the market
with any degree of activity While the
weeding-out process was going on market
values sank from day to day, but the re-
action has in most cases carried the quota
tions above the level which prevailed at
the end OF the preceding week. An easing
up in money rates and the expectation
that yesterdays bank statement would be
favorable also had tendency to brace
the market. 1t is the general expectation
that the current week may witness still
further advance which will bring the price
level close to that which prevailed before
the panic of Thursday, May 9. If prices
should rise to this altitude there will
doubtless be further heavy realizing sales.
Nearly every house has its favorite
stock, and from these sources originate
the bullish points about earnings, about
possible consultations and deals. about
economies in operation, about additional
feeders which are TO bring great increase
in traffic. 1t is a fact that the collapse of
the market on May put check to some
important arrangements which were pend
ing. and which were very likely to be of
benefit to the properties affected. It is be-
lieved that these arrangements, or some of
them, at least, will be again taken up and
pushed to a conclusion. Announcements
which viii encourage buying may there
fore be expected from time to time. Upon
the return of J. P. Morgan it is expected
that he viii take the United States Steel
stocks in hand and give them boost
They are hardly keeping pace with the
buoyancy Of the railroad list, and need
some energetic support.
Henry Clews says in his market letter
for the week:
Il am disposed to believe that the break
of last week will prove only temporary
and be followed by a quick return to
higher prices, but not the highest ante
panic level. We are now able to under
stand the chief cause of the persistent
and extravagant rise of prices. The pro-
tracted extraordinary strength of the
market was not due to a mere over
valuation of factors intrinsic to the i'm
proving traffic of the railroads. AS a
matter of fact, the prevailing feeling did
no doubt overvalue that factor; but we
now see what was very imperfeetly com
pretended before-the immense magni-
tude of the operations of millionaires who
were secretly buying controlling interests
in four or five great railroads, without
regard to the intrinsic value of the prop
critics.
The Northern Pacific corner has re-
vealed the true source of the great rise
in the stocks in which there had been big
deals. and suddenly the street awoke
TO the fact that il had been misled into
extravagant buying by unsuspected and
dangerous ventures, and had become in
Yclvec in an imitation of alarming nagni-
tude- This undeceiVing of extraya ga Mt /
expectations has alarmed the whole spec
ulatiNe community and driven them into
realizing, with the result of the fan in
prices which the past week witnessed;
and the lesson Of moderation which re-
cent events have taught is likely TO be I
remembered for some time to come and /
chasten the tone of speculation.
The situation created by the violent |
competition Tor the control Of Northern /
Pacific has now abated and the struggle |
Is no longer hksly 10 develop any derang- /
ing connict; and the same may be taken |
Tor granted in respect to other stocks /
more or less concerned with current rail- |
road deals. Moreover, the transactions !
IN these stocks, having been well elirni- |
mated from the general speculation are I
likely 10 remain forsaken until the |
deals have reached a final settlement |
This clearing up Of the situation opens |
the way TO resumption of speculation in |
other securities, but probably not with /
the same spirit and activity as hereto |
fore.
The situation. however. has another |
side that merits much consideration The |
crisis OF the danger is passed; We have |
seen the worst, and IL is felt to be great |
relief that the consequences have not |
been more serious. Not one stock eX- |
change house has suspended: which i'm |
plies that operators have. from their large
profits, been well able to take care of their |
contracts This is. perhaps one of the |
most gratifying experiences in the his /
tory of Wall Street speculations.
During the past week, there has been !
a pretty thorough wedding out Of en- |
feebied operators; the bargain hunters |
have taken on considerable floating stock 1
into their strong boxes; and the market |
IS thus working into a sounder position. |
While there has no doubt been a consid- /
cradle clearing out Of the weaker eIe-
ments, yet 1here remains an important |
class Of opera tors of large means and /
who have confidence in the staying quail
ties OF the market, and look for tho main
tenance OF activity through the summer
months They regard the underlying con-
uIfionS as essentially strong; and. while
conceding the transient effects of the past
shock and in no disposition to premature
" force uD prices they vet rcpys rd tho
workings Of the railroad deals as des-
tined to produce a permanent elevation |
In the value Of that class Of securities;
thus the very causes that have temporarf- !
ly oVerthrOwn the market are looked to /
FOR widespread consolidation Of our in
YeEtmeut interests
Transactions on the New York Stock
Exchange during the week just ended ag-
6.2i9,509 shares. OF this amount |
5,54I, ,l2j shares represent the dealings in /