Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1901-06-16
8. Iopen. High. Low. Close.
VIEWS OF HENRY CLEWS.

Special to the Register.
NEW YORK, u 1.-THE stock mar
ket has been enjoying a period of COM
parative rest and recuperation since the
bull revels of last May. Such a period was
desirable and has certainly been health
full. How long it will last cannot be fore
told, for we are entering upon the season
of summer quiet when absenteeism is
usually an effective hindrance to great
activity. The present market, however,
is not governed by precedents, conditions
being so exceptional as to 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 rigidly until
the forces which interfere have exercised
their sway. In the long run, natural con-
ditions will assert themselves. but just
now the market is largely influenced by
a set of events that require close watch
ing; so that while indications just now
are for a good trading market during the
next sixty days, sudden outbursts of ac-
tivity need cause no surprise.
As to the immediate course of prices it
should not be forgotten that they are al
ready high; some stocks nave scared to
dizzy heights and are better left alone by
the unwary. On the other hand, it must
be admitted there are few bearish ele-
ments in the situation; in fact, almost
none, except the high prices of certain
stocks and the possibility of friction de.
veloping in some of the big deals now un-
der way, which would precipitate sharp
reactions, the Northern Pacific slump be-
ir- otiII , epoo 81, ~ rnr,ioaar yyyi+, aacx,
money, July disbursements, good crops,
large railroad earnings and good general
business in sight, there is every prospect
that the market will gradually harden and
improve if left to itself. What it will do
under manipulation remains to be seen.
The speculative spirit is abroad and is
likely to follow any good lead until some
accident or reaching the exhaustion point
induces a setback. Easy money is likely
to prevail until the crop demand begins in
August. Last weeks drop in the bank
reserves was a surprise, but as this was
due to transfers connected with important
stock deals it exerted only temporary eff
feet. 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 in
creasing supplies of gold from the Klon-
dixie and the Transvaal in addition to
other liberal supplies there is little pros
pect of any immediate stringency. The
June government crop report indicated a
heavy wheat crop in sight with the posi-
bility of beating the record. Some esti-
mates went as high as $50 millions n
others $40 millions. Last year we had a
crop of only 52e millions, so that we are
comparatively sure of another year of
prosperity for the farmers and the rail-
roads, with a liberal margin for later dam
age from weather conditions. The Won
derful demand for iron and steel has car
ried us into q new record for their manu-
f~acture. which is now going on at a rate
of over 100000 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 conf
dence in railroad securities is we'll main
tanned, even at present high prices. The
latter are as everyone knows very largely
due to the graf consolidation movement
which is rapidly placing Our railroads in
the control of a few men and insuring
more stable conditions of railroad man
agement. Speculative operators are of
course using this leverage on the market
for all 1t is worth, and while stocks are
so largely concentrated in strong hands as
at present their ability to lift prices is un-
usual. 1t should be. remembered, however,
that the big men have stocks to sell, and
that as heretofore they will lessen their
holdings on a rising market. This trans
fer of stocks from strong hands TO weaker
ones is the danger point that must
be watched, and we are constantly draw
ing nearer to it. HENRY CLEWS.