Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-10-26
Prominent Banker Says Stock
Market Is Turning Corner
OF Its Long Depression
FlNANclERs AGREE WITH HIM
They Emphasize the Fact, However,
That Investors Must Expect to Wait
Patiently for Profits Upon Invest
ments Made at This Time-PubIic
Confidence viii Return Slowly.

New York, Oct. pa gentleman
whose name in a catalog, according to
merit, of our country's bankers woule
easily be among the first two or three
written down by any intelligent critic
and who. ever since the summer Of
1902, has been a constant pessimist
concerning the future of the security
market. said last week that 1t seemed
to him that the market was slowly
and gradually turning the corner OF
its long depression. He expected that
the commercial liquidation that, follow
ing the stock market liquidation, had
already begun would run a little fur
Their; but he doubted IL any material
impression would be made by his upon
the quotations for the standard divi-
iend-paying shares more than had al
ready been done, because the decline in
the price of these shares that had TAX
en place anticipated, and probably more
than anticipated, any decline in earn
ings that was at all likely. The pleth-
ora of money, too, would force an In
vestment demand for all classes of
good securities, not simply SM per cent
first mortgage railway bond issues.
This is the present opinion of not
merely one great banker with a life
lines record of s%agacity, but of many
Of our foremost financiers. They do
not look for a bull market. They know
and say that we are not yet out of the
woods OF the financial difficulties which
have surrounded us for 4 year They
emphasize the fact that investors must
expect to wait with great patience for
q profit upon purchases made at this
time. and that public confidence in the
value of corporation shares will return
10 the market, in view or all that has
happened, very slowly. But what they
do Tool for is the 'prostration of bust
ness turnout the country that bearish
operators in Wall street are so loudly
proclaiming as certain. They maintain
that the prosperity of our country rests
upon the substantial ground of the de-
velopment of what have hitherto been
our merely potential resources, of a
great increase in the cash wealth of the
land, as measured in actual gold coin
and bullion, OF the practically entire
axtinguishment Of the load of debt that
in previous years pressed upon the
shoulders of the western farmers, and
Of an absolutely safe, sound, ana
abundant circulating medium. They
agree, in other words, with n View
expressed by Mr.. Ridgely. the omp
troller OF the currency, before the
bankers convention at San Francisco,
that Ii prosperity lis not going to dis
appear or vanish in d day because of
the slump in stocks or the collapse of
a few underwriting syndicates."
Public Confidence.
Corroboration is certainly given to
this opinion by the action of u stock
market in the last month. 1t has been
on the whole II period of advancing
prices. interspersed with alarms and
occasions upon which the market
headed downward again as if it We're
about to dive to fathornless depths. But
each time the downward plunge sud-
denly halted. The spectators who sold
stocks in the course of it found that
the expected renewed liquidation by the
general public did not occur, n that
they were compelled to buy back az
higher prices the stocks they had soil
belonging to other people. When this
was over the market became duh and
featureless. The public was as I'M
willing to follow the advance" as to
get scared at the decline. And this is
Il state of mind on the part of the gen
aral public that wholly accords with
the diagnosis Of the situation that has
been presented. So, too, the market
for bonds has taken on a strength n
that bears directly upon the
Of the general securities mar
future.
In nine cases out Of ten a high bonl
market Is a prelude to a higher stock
market. In the present Instance the
higher quotations for. bonds directly
reflect the ease in the money situation
md the confidence of those possessing
large quantities OF ready funds who
1t more profitable to buy good
yielding from 4 to Az per cent
than to lend their one on time or on
When money becomes as ex-
eeedingly plentiful as there is every
reason to believe it soon will be, oppor-
tunities of loaning it ~ all VIII grow
very scarce and investment will be-
compulsory. In the very nature
Of things, a process of investment thus
started does not content itself with
- re ..g~ilt-edged' issues, but spreads
bonss CT the second n third
and in the better lass OF pre-
shares
uow To CAIN n EcH