Omaha daily bee., 1903-01-26
STOCK MARKET HESlTATES
Best Stocks OFF Of Market and Those Avail.
able Not ia Favor.
TRADE is LIKELY TO CONTINUE GOOD
General Conditions Improving and
Panama Canal Payment Not
Likely TO Bus
mess Much.

NEW YORK, Jan. 25.-Cspecial)-Henry
says:
Now that the rise following easier condi-
tions IN the money market has had its
swing the stock market shows undisguised
hesitation. To put prices conspicuously
hlgher some new stimulant is necessary,
and II is. plainly not just now in sight.
Good stocks at present prices are too high
TO attract large new investors. though held
to EXCLUDE all ideas OF forcing them down,
The best stocks are sustained not merely
by present prosperity assuring c~xisting
dividend rates. but also by the merger
plans of vast extent which move slowly
but are eventually expected to add to the
stability and value OF many of the big
railway properties.
The prospects of higher dividends on
high-class railroad securities are exceed
ingly remote. Many of these are already
paying better dividends than FIVE years
ago, but any further increases just now
are out of the question in view Of the
increased cost of operating and the vast
sums which will be required for expendi-
lures to keep these companies in line with
modern requirements. Thus II happens that
a large proportion Of the stocks, formerly
regarded as among the most substantial
for speculative purposes, are being steadily
Withdrawn from the market and shut up
In strong boxes, there to stay, probably,
until some big deal brings them to life
again or a crisis happens which forces
realizing on the best material. There re-
main consequently two other classes of
securities TO which stock market activity
must be COnnned, those OF roads which,
with growth of the country, have risen into
strength and prominence, and the indus
trials which are still to be considered an
uncertain and undesirable element in the
speculative situation. Neither of these,
however. offer any special attractions to
buyers just now. Dividend prospects in
that quarter have been amply discounted,
and the indisposition of investors to buy
at the existing level deprives the market
Of a very substantial and desirable element
of support.
wall street Not Optimistic.
It is somewhat singular that with the
trade and industry of the country still run
ming at the top rate of speed, the optimistic
spirit which such conditions usually induce
is not to be discovered in Wall street.
There is a'universal belief that the country
is in for another six months. at least, of
good business, and that If the harvest of
1903 proves anything like satisfactory 1t
doubtless will continue beyond that. Why
then the present undertone of not exactly
distrust but cold pessimism in quarters
where we have been accustomed to hear
nothing but the gospel of optimism? Some
of the reasons are these:
l. Prosperity has been amply II not over
2. Higher interest rates due to absorption
of money In new enterprises make stocks
3. Excessive underwriting of new schemes
and consequent locking up of funds is dis
approved.
L. Corporation profits are declining, owing
to increased expenses.
5. Large masses of undigested securities
/ II HtIu ONtI LIN AhdA dbbNt I
views; the big men having vast merger
plans in progress must wait for decision on
the Northern Securities case affecting the
status of holding corporations.
With such influences at work a bull cam
paign seems impossible. How long present
Inertia will last cannot be told. The mar
ket has lately been br taking the record for
inactivity. A bear party of strength might
infuse some life into the market, but with
stocks and credit so highly. concentrated
as at present there is little chance of seri-
Gus attack from that quarter.
General Conditions Improve.
General conditions continue to improve.
Bank reserves are rising and money rates
growing easier. Some rneasiness was
manifested over possible gold exports, as
we are still large borrowers abroad, but
grain, is going outward more freely, the
foreign money markets are in compara-
lively easy condition and there is little
likelihood of important gold shipments until
next spring. Our contemplated $40, 600, 900
purchase of the Panama canal will, of
course, compel heavy payments in Europe.
but in any event arrangements will GER
tainly be made seeking to deranse the eX-
change market as little as possible. 1t
| seems equally certain that no radical anti
trust legislation will be attempted this
/ year, though this same congressional inertia
also lessons the chances OF any legislative
relief on the currency problem. The only
| disturbing element now in sight Is the
hammabA possibilities. but the chances are
still very largely in favor of a pcaceable
settlement. For the coming week an ir-
regular market may be anticipated, with
the drift towards somewhat lower level of
prices.