The Washington times., 1902-01-07
COMMENTARY ON The
DAY IN WALL STREET

The Steel securities were made the lever
on which the stock market was given an
important upward movement yesterday af-
ternoon. They were bought in an immense
way and advanced 10 the highest level
since last July. II was said by good mar
ket authorities that Mr.. Morgan and his
friends were the power behind The move
raent. Mr.. Keene was said to be one OF
their lioutenan;s.
For time the strength of the Steels
had little effect on The general market
but before the close there was a general
covering OF short contracts and very
respectable amount of general commits
sion house buying all over the list.
Jersey Central Gets = =. c. Div iden,l
Another matter that had much to dc
declaration of per cent quarterly
dividend on Jersey Central, an advance
OF the dividend rate from to S per cent
per annum.
Mr.. Morgan and his friends are the
chief factors in the Jersey Central affairs,
as they are In all the anthracite coal
companies. This fact is most suggestive
that the theory Of Mr. Morgan's prepon-
derating influence in the present market
is the correct one. Ii suggests that Mr..
Morgan, and the people that he repre-
sents, believe in the present prosperity
of the country and believe further that
the stock market is to advance in har-
mony with this prosperity. II suggests,
in addition. that having this belief they
are doing all they can TO bring about
such a strong market.
The Morgan Coterie's Position
There can be no doubt that If a big,
broad, active market can be engineered
into being the Morgan interests will be
immensely the gamers by it. Their plans
are vas, ina they are not all launched
successfully as yet. The thing that has
addition TO general business prosperity,
has been stock market prosperity.
There is not necessarily in this any in
ference that Mr.. Morgan wishes to unload
big blocks of stocks on the public for
more than they are worth. 1t is the
professional conversational currency in
Wall Street that the big people" make
booming stock markets for no other pur-
pose than TO sell stocks in when they
know that as soon as their efforts are
over prices will react Il long way. The
fact is, of course, that all big people"
always wish high prices for stocks. and
are always bulls because they person
ally own vast blocks of stocks always
The fortunes of the Vanderbilts ard the
Gculds and the Morgans are made up of
investments in stocks and bonds, and the
higher the prices of these stocks ard
bonds are the richer these families are.
Only the professional stock market opera
tors. or The people that are chiefly stock
l-arkct operators, are ever bears for very
long at time.
High Prices for the stccIs.
The present movement in the Steel So
curities IS based on the knowledge that
the forthcoming quarterly report of the
company will show q continuance of the
wonderful prosperity of the company.
There is little reason 10 credit the ru-
mors that the dividend on the common
stock will be increased. Very likely these
rumors are circulated by the bears in
order that they may engineer bear cam
paign when the report OF the company
is issued and when no increase in the
dividend Is announced. The friends of
corporations are not the only people that
find it profitable to circulate rosy stories
about their securities at times.
The prices of the stocks. around A and q
yesterday, are advancing toward The level
that prevailed before the strike of last
summer. Conservative people are of the
opinion that these prices are still under
the level that they deserve 10 attain to
be in harmony with the great prosperity
of the company and its fine outlook. The
preferred is apparently solidly fixed on its
present dividend basis, and under par it
certainly does not look inflated"
The Anthracite ConIers
The Jersey Central is making wonder
full earnings returns every month. 1t is
said the company is earning 20 per cent
on its stock. The wisdom of increa sing
the dividend on the stock to s per cent
can hardly be questioned therefore. The
advance in the rate is he best kind OF
bull argument on the anthracite securities
generally. OF course, it is especially an
argument why the Reading securities
should advance, as the Reading company
owns half OF the Jersey Central stock.
II may be noted here that there are
few people in Washington thai did not
sell out their Jersey Central to the Read
ing people, and that they are glad of il,
of course. Some people considered them
iOOlI6n not 10 sell at the price OHefSu,
which was a fancy one at the time.
A Delaware and Hudson Boom.
Delaware aud Hudson had sharp ad
vance OF five or six points during the
afternoon on inside buying. The street
heard the story that the dividend on the
stock was 10 be increased as that of the
Jersey Central had been, but there was
no official confirmation OF the story. The
earnings of the company are very heavy.
The other anthracite coalers generally
were strong during the afternoon.
City Bank 10 Export Gold.
The Cts National Bank yesterday with
drew from the Sub Treasury $500, 900 for
export today. II had been suggested early
in the day that the higher exchange rates
nigh; lead to gold exports, and tine news
of this withdrawal did not cause much
surprise.
Call money Was easy yesterday and the
promise is that il Will continue go. 1t Is