The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-01-21
REVIEW OF WALL STREET
SHARP FLUCTUATIONS EITHER
WAY MAY BE EXPECTED
FOR A TIME
RUMoRs THAT HIT MARKET
Henry CIews Now Recommends
Trading Only to Catch the
Turns I'm the Market
Foreign News.
NEW YORK, Jan. 19.-Henry Clews In
his weekly financial review SAYS:

NEW YORK, Jan. 19.-Henry Clews In
his weekly financial review says:
The stock market requires close watch
ing; circumstances being favorable to
sharp fluctuations in either direction
whenever the market leaders choose. At
the moment the most uncertain factor
in the situation is the outside public,
which has come into the market with
such unexpected force The public has
bought stocks on an unprecedented scale,
generally with ample margins, so that
thus far the market cannot be said to
be honeycombed with weak accounts
such as generally mark the elimination
or bull movement. Much OF the recent
advance in railroad shares has been due
TO the progress Of the Community of
interest idea in the various railroads.
especially the anthracite coal properties.
1t does not by any means follow that
these properties are to be consolidated.
state laws often being an effectual bar
rier to such projects; but by purchase,
exchange Of other means the owner
ship of these properties has been so
distributed as to silence conflict be-
tween the various lines and to permit
the adjustment of traffic upon more eco.
nomical and, therefore, more profitable
lines. With the prospects of rate-cut-
ting thus diminished, If not abolished,
the prospects of better profits are great
ly increased; hence, with the present
large earnings of the roads, the recent
boom in values has some appearance
of justification.
Some Of the big operators seem to have
been trying to curb this speculative spir-
it; not from any philanthropic motive, but
simply because it threatened to interfere
with their plans and carry the market
beyond their control. The outlook for
gold exports and rumors of a Federal
Steel bond issue gave the market a set
back, the tndustria1s leading the de-
cline. Very considerable liquidation fol-
lowed, and the short interest was in
creased to an extent that may strengthen
the market later on. The immediate fu-
ture Of the market, however, is very
uncertain, and we can only advise eau
ton until the situation is clarified
In Judging Of the future course of the
market, 1T is important to. take at it's
proper value this element In the wholly
extraordinary rise in prices The ques-
ton is-has the advance in prices been
attended by an equal rise in intrinsic
values? It may be safely assumed that,
so far as prices have been put up through
the pure force of extraordinary and un-
opposed demand, to that extent the rise
stands. exposed to reaction There is no
rule, however, from which we may Judge
as to when, or under what set of cir
cumstances, the reaction may be expect
equal, the persistence Of any imitation
will be proportioned to the persistence
OF the uniform order Of confidence which
forced the advance. So far there has
been no broad or serious abatement of
the hitherto almost uniformly sanguine
feeling; nor has the money market in
terposed any obstacle to the carrying
of stocks. Conservative holders keep up
steady stream of realizing, but the san
Of 10 IN
cendant; 1t cannot be said however, that
they include as many Of the really strong
ana sagac1ous operators as heretofore
Steadily more and more the market is
getting Into a state in which its sup
porting resource consists largely. of the
outstanding profits of holders; and 1t re-
mains to be seen what that sort of stay
ing powers, amounts to. It's strength
usually Is proportional inversely to the
degree of imitation there is In prices; and
the precipitaney there Is in a reaction
depends on the same cause. At this mo-
ment the market is sustained by certain.
elements which are unQuestionably CAL
culated to encourage speculative buying
Important corporate reconstructions are
In process or in contemplation. under the
control of high financial potentates, and
rumor is busying itself in the invention
OF fctions which, If true, would consti-
tute tbulF' arguments Of considerable
force. 1t is a question, however whether
these very tactics may not compel said
plans to retire into postponement; by
which an opportunity for getting out of
stocks under pretty effective cover would
be lost.
1t Is not to be overlooked that there is
limit to the time for which a high
speculative excitement can be kept up
After time the nerves protest; the re-
lapse stage Of the Wall street fever sets
in, and the patient settles into a state Of
invalidism in which he is apt to brood
over profits which he failed to realize
For the present I recommend trading
only to catch the turns in the market
rather than for permanent holding, which
hereafter will be Of frequent occurrence.