The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-01-14
HVEN 0F WALL STREET
HENRY CLEWS THINKS THE MAR
KET WILL GO HIGHER BEFORE
THE TURN COMES
RUM0R OF Low-PRIeED STOCKS
They Usually Mark the BEGINNING
Of the END of "A Ball Campaign
Policy of Prudence
Recommended.
NEW YORK, Jan. Especial Henry
CIews- in Lis w esk-Y financial review avs:

NEW YORK, Jan. 12.-(Spec, al )-IIenry
Clews in lis Nesky financial review says:
Tho oamra sn has now. run course
OF ten weeks Of unparalleled activity and
prices have advanced on an average
about - points. According TO ordinary
rules such . run OF speculat on would
suggest the question whether a stage had
not been reached at which realizing and a
reaction in prices were in order And in
the present case, -cCnserVat tive operators
Rave seriously entertained that uS-tion
and many OF them have realized Their
sales, however, have had scarcely any
visible effect On prizes; en- the contrary,
the rising tendency has continued and not
few of those who had sold ut have
entered the market again, thinking it safe
Tor acfeW-ponts further advance. The
strenG conviction that a react n was inn
pending bought cut large 'sFoCC' sales,
which only increased the strength of the
market and drove the bears into hur-
ried covering. So far. the progress of the
campaign has strengthened the steadily
growing conviction that, underlying the
market, there is . force of confidence and
OF speculative resource surprising all for
mer experience and he feeling, has
seemed TO gain ground that it would be
unsafe at present TO attack the market
1t cannot be said that the high range
Of prices has vet introduced any distinct
diStrust, and yet values have rsen 50 far
above the normal level that each further
advance brings the market nearer to
point Of dangerous strain and invites
realizing and short selling. Large profits
are now within reach. while IUr ther buy
ing means an increase Of risks On gen
eral principles. it is safer to take sure
profits than 10 increase holdings and
thereby. invite sweeping react n7. Breaks
IN prices are becoming more frequent,
which show that the sounder operators
are getting out of the market and the
weaker getting deeper into it. We coun-
sci policy Of prudence.
The movement on the Stock Exchange
hes been erratic and fevcrish; and
while there are symptoms that the up
ward movement is drawing TO a close,
sun 1t cannot be asserted that the end
Is IN sight. Money is easy; good invest
mentS IesSCarce; the speculative fever is
not ahating, and big deals and rumorS
OF suchsare insthe air, so that stocks are
firmly held and the large man. pulators
apparently have little difficulty in rails
ing the market at Will. Present Condi-
tons are 80 unusual that ordinary judg-
ment cannot be applied. A wave OF OPP
Jnllsm IS sweeping the Whole country,
and this has an effect upon ali values 4
which is real but cannot be measured.
some day intrinsic merit vi again be-
considered sbUt just now almost any
statement in regard to deals or dividend
prospects meets With, belief without
much question. AT the same time 1t
can hardly he, said that specula i n has
gone to dangerous excuses. The out
side Interest has made money and IS
in strong position: The big men may
have parted with a portion of their ho.d-
ings! but, II 50, ii has been OF the poor
or classes OF securities. Better grade div
idend-paying stocks of tried merit are be-
ing permanently Withdrawn from the
market, ard this fact. together with the
large amounts of money seeking profit
able investment has much to do with
the present rise in values. TIE market,
however, presents unusual risks on both
sides. The scarcity of stocks and prev
aIent bullishness render short sales par
ucularly dangerous; while uneXT ect ed de-
, Velopments of an unfavoFable nature
might easily preciptate wholesale taking !
OF profits At this writing the indica-
lions are that the market will go higher
before any decided check will ne incur
red bat buying must be conducted with
increasing caution and careful discrim-
ination against rulnors about the low
priced stocks The taking told of these
usually marks the beginning of the end
of bull campaign; and this enc, rec
Ord-brealyiRg- as it is, will be no excep-
ton to the rule.