The times. [volume] (Washington [D.C.]) 1897-1901, 1901-04-21
Henry Clews in his weekly comment on
the market says of the present fever of

Henry Clews in his weekly comment on
the market says of the present fever of
speculation:
there seems to be no limit in sight to the
extremes to which speculative tendencies
may carry prices. The market has passed
beyond the control of cold. calculating
reason. and seems to be careertng along
at an intoxicating gait which promises to
last until accident or sheer exhaustion
brings the public to its senses. Conditions
are certainly favorable to Il period OF eX-
cessive speculation. and this fact must be
admitted irrespective of the opinions of
ordinary prudence. With prosperity gen.
eral. with money plentiful at reasonable
| rates: with the speculative temper at
| high pitch. and with larger aggregations
| of capital than ever before known work
| ing with all the irresistible power of a
! tremendous force, il is not surprising that
| values are made to soar upwards Moth
] ing is more contag ious, once it is fairly
developed. than the fever of speculation:
| and, like fevers Of other sorts 1t must
| run its course. At the present time much
| of the buying is based upon the belief
! that the big capitalists and syndicates are
! Obliged to support the market, rather
! than allow the various deals which they
! have in contemplation to collapse. Let
/ one or two weak spots Of Importance de-
| velop; let one or two important deals
! fall through and the whole bun movement
would be checked. and the results of a
| stiff reaction just now would he disas-
| trous. Fortunately no weak spots Of con-
1
There are no signs yet that speculation
| has been carried to a dangerous excess,
or that financial resources have yet been
weakened. If speculation has surpassed
| the record. IL must be remembered that
! 1t is simply keeping step with record
breaking times. and that in the large ma
iority Of instances the advances in stocks
have been justified by their Increased
earning powers and the aDund 1nce of
money.
he toe h.
have occupied the centre OF the stage
speculatively during the week. Interest
| In them has been at fever heat at all
times and the fluctuations i'm prices have
been large and important Burlington
and Northern Pacific were extremely
buoyant early in the week. but later they
gave way TO ST. Paul, Rock Island. Union
Pacific, and the Atchisons The reasons
for these movements have been meas
urably well understood by the street The
Burlington deal has become a verify and
its terms are known with reasonable ac-
curacy. They are most fiattering to the
Burlington stockholders. Interest natu-
rally switches from this deal TO the prob
able developments to follow IT, The Bur
lington being in possession of the North
ern Pacific-Great Northern clique II is
certain that the Vanderbilt clique and
the Gould clique. and the Pennsylvania
clique. and the Hartman clique will wish
not to lose anything i'm the balance of
power. The street realizes this fairly
well II is a nice problem just what part
of the buying of Union Pacific and Rock
Island and St Paul and the Aichisons has
been for the insiders of these various
clinues and how much for the SPECTATORS
IN discounting further deals. Unquestion-
ably the PENNSYLVANIA has been buying
the Atchison securities heavily. Certain
". too, there has been buying of Union
Pacific and ST. Paul by important people.
and In large blocks. Nearly all Of these
securities are now selling at prices where
Ii Is impossible to figure out a profitable
Investment. Some of them are at level
where the investment will yield little
more than per cent. But as long as the
insiders are working their deals and the
public does not receive damoer the adj
vance may continue. ON the other hand.
the end Of the wild upward movement
may come at any time. The stocks are
dangerous at their present level II is
never safe to speculate In stocks that are
selling above their legitimate level. sim
ply because they may be forced higher.
The risk is the same that assumed In