Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-10-19
Unusual Movement Disturbs
StocksMarket Creating Wide
Disparity In Values
INDUSTRIAL FUTURE UNCERTAIN
Liquidation in This Section of the
Market Tremendous-G General Con-
servatism Prevailing in Business
Circles Is Suggestive of Reactionary
Tendencies.

| New York. Oct. 19.-Henry Clews in
| his weekly financial letter says:
! Conflicting conditions still confuse
the stock market outlook. 1t is quite
plain, however, that the time has ar
rived for clear-cut determinations, and
| in deciding where liquidation has gone
IS far as JUSTIFIED and where it has not.
1t is equally evident. also, that the
market has not permanently turned
and Is not yet on the way TO real re-
| corery; and yet there is no escaping
another conclusion that many good
stocks are selling much below intrinsic
value, having changed hands at sacri-
flee prices in order to meet pressing
Obligations or 10 protect securities or
doubtful value. This unusual move
ment mas disturbed the markets equi-
libriu1n. so that there is today a wide
disparity in values which can not be
adjusted until both the good and the
bad have reached a leve, more In keep
ing with new conditions
Beyond ques uon, the better class of
railroad securities are selling at very
attractive prices to investors. Our
railroads are in both excellent physical
and financial condition, honestly man
aged, not over capitalized, and gener-
ally speaking are up to- date in all re-
spects. In the event or business reac-
ton their dividend paying capacity is
rot likely 10 suffer, for The reason that
there Is such large margin between
earnings and necessary operating ex-
penseS that any loss In earnings could
be readily compensated for by dimin-
lshed OUTLAWS for Improvements, to say
nothing of the. economies made posi-
bic by recent betterments. 1t is safe to
say that American railroads were never
such sound and profitable inves tmenis
as they are today.
AS for the industrial section of the
| market. its future, it must be admitted,
is uncertain. Liquidation In that quar-
ter has been simply tremendous, and 1t
would seem as ii these securities had
July paid the penalty of excessive in
iatlon 1t must be remembered, how
ever, the lnduStrials have not yet with
stood the crucial test of business re-
action; their decline thus far, steel ex-
cepted, being due to failure OF pro-
.noterS and underwriters to float their
new creations. The general conserya-
| tism now prevailing in business cir
| cles, while an assuring symptom, Is
strongly suggestive of reactionary ten
/ denotes. If merchants buy less. as they
are doing, when the harvest is good
and farmers are prosperous. it means
| less to do in the factory; and il raIl-
roads begin to econonize and stop mn
usual OUTLAWS, that means less demand
for steel and many other products
business men recognize that prices or
/ materials and labor are too high, THAI
construction work of all kinds is TOO
expensive and uses up capital too rap
idly. Much work is consequently de-
ferred and the decline in steel is the
first step in an inevitable readjustmeny
to lower level. Labor, too, must take
its share. Wages and exactions OF the
unions have risen to practically pro-
hibitory points under an over-aggres-
sive and over-grasping leadership. The
coming winter is likely to see many idle
workmen. and the labor movement, a
| movement having great possibilities FOR
good, has been weakened by its own
follies, which will be likely to cause a,
setback in it's aggressiveness for some
time to come. The present reaction is
just as much the result of excuses OF
of labor as the excuses of Wall street.
with this difference: that the penalty
for the latter has almost been paid,
while the penalty for the former is still.
to fall upon those at fault