El Paso daily herald. (El Paso, Tex.) 1881-1901, 1901-02-06
LETTER
NEW YORK STOCK MARKET
STILL A PUZZLE
Money Market Continues Easy ant
Likely to Remain So.

Money Market Continues Easy and
Likely to Remain So.
NEW YORK. Feb. 2-The stock
market continues an enigma to the
average observer and shows an utter
disregard of all presidents.
Activity has been greatly diminish
ed. n some efforts were made to force
declines. but with very limited sue
cess. At the moment the public shows
no disposition to enlarge its purchases.
The average outsider has made money
during the last few months, and has
either taken his profits and withdrawn
until lower prices or some other in
ducementS tempt him to reenter. or he
is so confident of the future that he is
content to wait and TAX the chances
of still larger profits. Since railroad
earnings are large and general bust
ness active, and there are fewer weak
accounts open to attack than usual,
there seems to be nothing in sight to
check the present wave of optimism.
until the latter has spent it's force and
begun to recede. When hat point will
be reached is, of course beyond human
wisdom to determine. Just now the
out o for a reaction is not very pos
tive. Prices seem very high n good
securities scarce. Solid investments
are rapidly settling down to a 31h a
4 per cent basis. and so long as money
continues abundant we are not likely
to see any important recessions in the
best securities. 1t is the difficulty of
finding safe and profitable employment
for money that is really underneath the
present strength OF the market. Man
ipulations and deals of various sorts
are simply the lever by which prices
have been lifted. They could never
have attained the present high level
but for the prolonged period of cheap
money. and until this underlying con-
dition is changed we do not look for
any serious reaction in the stock mar
ket.
In other respects the market has
been in a very peculiar position, &C
tivity and strength being in spots or
confined to certain securities. This is
entirely due to the various railroad
deals in progress. The consolidation
of railroad systems moves along al
most irresistibly, h improvement OF
facilities and economies of operation
making such transactions imperative.
Legislation may prevent the formal
consolidation of many of these pro-
jects. but it cannot prevent closer
working arrangements, nor is it desir-
able tnat it should. Passengers or
freight between New York and San
Francisco can certainly be transported
more cheaply, more rapidly and more
through a single system
of railroad with n ticket, n berth
one car, than with a series of
changes. detentions. risks of connec-
lions. etc. 1t is quite safe to say hat
the public, much as it hates large
corporations. would never go
to the methods of twenty or TWEEN
years ago, when long journeys
meant much discomfort and depriva-
tion. h movement, however. to-
wards consolidation has it's ups and
downs. Actual combination and pool
ing often being impossible owing to
legal distractions, the community of
idea is being tried. This in
wolves such a distribution of owner
ship as can exercise control over the
powers and prevent the
demoralizing cut rate struggles which
bankrupted so large a proportion of
railroads during the last decade. This
plan is to be put into effect in the coal
ers, and efforts are being made to car
ry it out in some form in certain of
the western and southwestern lines.
The accomplishment of such plans
means the transfer of large amounts
of stocks into the hands of those con-
trolling the deals, and it is such oper-
as these which have impaired re-
cent strength into the market. Some
negotiations have not been completed,
n no means are yet offered for
judging their stability; but many of
the market leaders have certainly been
dis~couraging a vigorous advance for
some little time past. and this ac-
counts for diminished activity.
For the average outsider the market
at present is a somewhat dangerous
one. being particularly dependent upon
manipulations of a few opulent men.
whose control of the market is more
complete than usual by reason of the
deals they can make or break as their
interests prompt. Their industrials are
an element of uncertainty. the specu-
lation in this quarter being less legiti-
mate; n while business continues
large in volume, prices are declining
and the profits of 1900 are not likely
to be repeated in 1901. New c%oh,peti-
ton is steadily increasing in the in
dustrials. and the experiment of put
ting a lot of scattered establishments
into huge single concerns has not by
any means proved a permanent sue
cess.
The money market continues easy