The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1903-01-30

BULL CAMPAIGN N WALL STREET
AT PRESENT
A New York financial authority says: NOW
that the rise following easier conditions in the
money market has had its swing the stock
market shows undisgused hesitation. To put
prices .conspicuously higher some new stimu-
liant Is necessary. and il is plainly not just
now IN sight Good stocks at present prices
ere too high 10 attract large new investors,
Though held with such frmness by present own
erg as 10 exclude all ideas Of forcing them
down. The best stocks are sustained not mere
e 10y present prosperity assuring existing divi-
leEd rates, but also by the merger plans o.
ast extent which move slowly but are even
'.uallv expected 10 add 10 the stability and value
80 many OF the big railway properties.
The prospects Of higher dividends on high
class railroad securities are exceedingly re
Fn0fc. Many u these are already paying better
dividends than i've years ago, but any further
increases Just now are out Of the question IN
lew OF the increased cost of operating and the
vast sums which VIII be required for expendl J.
lures 10 keep these companies IN line with mod
Crn requirements. Thus il happens that a large
proportion Of the stocks formerly regarded a.
. aTnonE the most substantial for speculative
purposes are being steadily Withdrawn from the
say. probably. until some big deal brings them
fD life again or crisis happens which forces
realizing on the best material. There remain
tonseQuenflN, Two other classes OF securities 70
which stock market activity must be confined,
those Of roads which. with the growth Of the
Country- nave risen INTO strength ana pronl-
.Uence ana the industrials, which are still 10
be considered an uncertain and undesirable ele-
meut IN the speculative situation. Neither OF
rlese. however offer any special attractions 70
.1s-fe- Isve been smpIv discounted and the
ndispOsitiOn OF investors 10 buy at the existing
IeVcl deprives the market Of a very substantial
and desirable element OF support.
--It IS somewhat singular that with the trade
nd industry OF the country still running at the
f1p rate OF speed the optimistic spirit which
such conditions usually induce Is not 70 be dis
covered in Wall street. there IS unlNeisai
belief that the country is IN for another six
months. At least. Of good business. ana that II
factory il doubtless VIII continue beyond that.
NhE. then. the present undert0ne Of not eX-
aeJly distrust but cold pessimism. in quarters
where We have been accustomed 10 hear moth
lE o1t ine slsleI OF l'li1l.lsin some OF tne
reas2ns are these: 90 ProsPeITiJy mas been
-st rates. due 10 absorption Of money in new
enterprises. make stocks relatively dear; 90
excessive underwriting Of new schemes and
- corporation profits are declining, owing TO
Increased expenses 90 large masses OF undi-
eeste1 securities are held over the market
above buyers views. the big men having vast
merger plans ia progress must wait for de-
g. siou on the Northern Securities case affecting
Influences At work bull campaign seems I'M
possible. How long present inertia will last
tsnnot be told. The market has lately been
breaking the record for inactivity. A bear
marty Of strength might infuse some life into
highly concentrated as al present there IS little
chance of serious attack from that quarter.
General conditions continue 70 improve Bank
deserves are rising and money rates growing
easier some unessiness was manifested over
possible cold exports, as we are stil large Dor
rdWers abroad. but grain is going outward more
freely the foreign money markets are in COM
paratiHely easy condition ana there is little
Likelihood II important gold shipments until
next spring our contemplated $40. 90. 600 pur-
chase ~ the Panama canal viii OF course. com
pei heavy payments IN Europe, but in any event
ARRANGEMENTS viii certainly be made seeking to
eersnge the exchange market as little as posi-
be u seems equally certain that radical
antitrust legislation viii be attempted this
year though this same Congressional inertia
also lessons the chances OF any legislative relief
IN the currency problem. The only disturbing
elemcut IN sight IS the Venezuelan ques-
lion. which contains infamnable possibilities.
but the chances are still very largely in favor
% p peaceable settlement. For the coming
week an irregular market may be anticipated.
with the drift toward a somewhat lower level
IA