Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1901-01-20
VIEWS OF HENRY CLEws.

VIEWS OF HENRY CLEWS.
| Special to the Register
NEW YORK, January 19.-The stock
market requires close watching; cir
/ cumstances being favorable to sharp
| fluctuations in either direction when
ever 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 honeyoombed with weak &C
counts such as generally mark the
! culn-lLation CT bull movement.
Much of the recent advance in railroa1
shares las 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 prop
/ critics are to be consolidated, State
laws often being an effectual barrier
| to such projects but by purchase, ex-
change or CIJher means the ownership
| of these properties has been SO dis
tributed as to silence conflict between
the various lines and TO permit the
adjustment CT traffic upon more eco
nomical and, therefore, more profitable
! lines. With the prospects OF raSe-cut-
| ting thus diminished, if not abolished,
the prospects of better profits are
greatly increased; hence, with the pres
ent large earnings of the roads, the
recent DCcm In vaiues has scme appear
ance of justification.
| IN Judging CT me future course of
the market, it is important to take at
It's proper value this element in the
| wholly extraordinary rise in prices.
The qutLtion is-h&s the advance lin
prices been attended by an equal rise
in intrinsic values! 1t may be safely
assumed that, so far as prices have
been PUT up Though the pure force of
extraordinary and uLCpposed demand,
to that extent that rise stands exposed
to reaction. There is no rule however,
| from which we may judge as to when,
or under what se3 of circumstances,
| the reaction may be expected to appear.
All ether things being equal, the per-
Slstence CT any lnfaClon Will be proper
toned to the pei 5iStence of the uni
form 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
tn,>nnSc5 al bn rim
Of stocks. Conservative holders keep
up a steady stream CT realizing; but
the sanguine class are still largely in
the ascendant; it cannot be said, now
ever, that they include as many Of the
really ST. ong and sagacrous operators
as heretofore. Steadily more and
more, the market is getting into state
in which its supporting resource con-
sistS largely of the outstanding profits
of holders; and it remains to be seen
what that sort of staying powers
amounts to. It's strength usually Is
proportioned inversely to the degree Of
imitation there is in prices; and the
precipitancy there is in reaction de-
ponds on the same cause. AT this mo-
ment the market is sustained by Ger
ably calculated to encourage specuia-
tive buying. Important corporate re-
constructions are in process or in con-
temptation, under the control of high
financial potentates, and rumor is
busying itself in the invention of fic-
tions which. if true, would constitute
bull arguments Of considerable
force. 1t is question, however,
whether these very tactics may not
compel said plans to retire into post
ponement; 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 high
speculative excitement can be kept mp.
After a time, the nerves protest; the
relapse 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 trad
ing only to catch the turns in the mar
ket rather than for permanent holding,
which hereafter will be of frequent oc-
currence. HENRY CLEWS.