The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1901-06-20
HENRY CLEWS'
MARKET LETTER
Stocks Resting Since Bull
ReyeIS Of Last Month

Marsct hss been enjoying a period
OF comparative rest and recuperation I
since the BUN revels Of last Mag
Such a period was desirable and has
certo.0ly been healthful How long
Il viii last cannot be foretold for we
are entering upon the season Of Sum
mer quiet when absenteoism is us
uaily al effective hindrance to great
activity The present market, how
ever. is not governed by precedents.
conditions being so exceptional as 10
defy the usual methods Of judgment.
In considering the future. therefore.
we must accept these conditions as
we find them; and while keeping
history and precedents in mind, not be
ruled by these too rgidly until the
forces which interfere have exercised
their sway. Ia the long run, natural
conditions will assert themselves but
Just now the market is largely infu-
enced by set Of events that require
close watching; so that while indica-
tions just now are for a good trad
ing market the next sixty days, sud
den outbursts Of activity need cause
no surprise.
AS 10 the immediate course Of
prices It should not be forgotten that
they are already very high; some
stocks nave scared to dizzy heights
and are better left alone by she up-
wary On the other hand, it must
be admitted there are few bearish
elements in the situation; in fact
almost lone. except the high prices
of certain stocks aAd the possibility
Of friction developing in some Of the
big deals now under way, which
would precipitaUe sharp reactions,
the Northern Pacific slump being still
q emartins romlndec With easy mon
ey. Juiy disbursements, good crops,
large railroad earnings and good gem
era business In sight, there is every
prospect that the market will grad
ually harden and improve II left TO IL
self What Il will do under manip-
ulation remaing to be seen The spec
ulative spirit is abroad and is likely
to follow any good lead until some ac-
cident or reaching the exhaustion
point induces set back. Easy mon
ey Is likely to prevail until the crop
In A / af q
in the bank reserves was a surprise,
hut as this was due TO transfers con
nected with important stock deals
Il exerted only temporary effect. In
all the principal money markets Of
Europe easy rates prevail, as Illus
trated by the reduction OF the Bank
OF England rate TO 3 per cent, and
with increasing supplies Of gold from
the Klondike and the Transyaal in ad-
dition to other liberal supplies there
Is little prospect Of any immediate
strngency The June Government
crop 2port indicated heavy wheat
crop in sight with the possibility Of
beating the ecord. Some estimates
went as high as 6SS millions aud 9th.
ers $40 millions.
last year we had a crop OF only
522 millions, so that we are compar-
atively sure Of another year of pros
perity for the farmers and the rail
roads. with liberal margin for lat
er damage from weather conditions.
The wonderful demand for iron and
steel has carried us into new rec
ord for their manufacture. which is
COW goiag on at a rate of over S00,-
600 tons per week in excess Of last
years great output. And in the face
Of this. stocks at furnaces show a de
crease. Railroad earnings continue
TO make very handsome gains; hence
confidence ln railroad securities is
well maintained, even az present high
prices. The latter are as everyon,
knows very largely due to the grea
consolidation movement which is rap
idly placing our railroads In the con
troll OF few men and insuring mor'
stable conditions Of railroad manage
men. Speculative operators are o
course using this leverage on the
market for all it is worth, and whii
stocks are so largely concentrate,
In strong hands as at present thei
ability TO lift prices is unusual.
should be remembered however, tha
the big men have stocks to sell, an
that as heretofore they will lesse
their holdings on a rising marke
This transfer Of stocks from stron
hands 70 weaker ones is the DANCE
point that must be watched, and W
are constantly drawing nearer to IL