The Savannah morning news. (Savannah, Ga.) 1900-current, 1904-06-19
FINANCIAL PROPHETS AND SEERS
CHARY OF BOOM PREDICTIONS
After Weeks of Persistent Hammerns the Stock
Market sold to StandstiIi.''
By w. @. NICHOLAS.

New York, June 1S-The founda-
lions of the stock market have the
appearance of hardening. A tendency
to increased activity is also noticeable
and change for the better in the
character of the dealings. The pro-
fessional element has been forced to
the conclusion after many weeks of
persistent hammering that the market
has been sold to a standstill" and
that the supply of shares is no longer
large. Holders of securities some
time ago settled down to a test of en-
durance, and nowhere along the line
is there evidence of general weakening.
There is an occasional soft spot or
air hole, but the situation as a whole
is becoming more satisfactory. Moth
ing short of a great calamity could
start further important liquidation. At
current quotations a great majority of
active stocks represent about all the
shrinkage they can be legitimately en-
titled to with business as 1T is and
prospects reasona bly, bright.
Prices Picking Up.
Price changes are, as a rule, trivial.
Whatever little action there may be
from time to time is generally in the
line of improvement. Sailroad earnings
are coming in better; crop reports are
in the main Favorable; ,he manufac-
turing industries show Amost no adj
ditional recessions; tire supply of avail
able money is continually IN the in
crease with low interest rates uniVer-
sally prevailing while danger of loss of
confidence due to political agitation
becomes less threatening day by day
1t is true that business expansion is
at low ebb. There appears to be no
money obtainable for new things.
Capital has grown unusually cautious
and is content to rest and let the
country grow up to the measurements
lately taken. That may be regarded
as very healthful indication, and it is
so regarded by a large majority of
conservatives.
Necessity compels owners Of es-
tablished properties, either railroad or
industrial, to keep up with the times
and that requires continual expendi-
ture in periods OF leanness as we'll as
plenty. Indeed, improvements and ex-
tensions are going on without cessa-
ton, and the leading railroad systems
of the country have two or three years
ahead OF them of large outlay before
the active work upon which they are
now engaged is completed Until then
they will have no breathing spell, it
might be said. The prophets and seers
of the financial world are in the mean
time chary of predictions of booms in
the stock market. They do not look
for any for year or more, and bank
ers and great financial institutions do
not encourage a return of wholesale
speculate ton in securities. They are
Il s-4I- -
control and permit restoration to
complete health to be a gradual pro-
cess.
Bond Market Active.
Banks and bond houses agree that a
very large aggregate business is being
done in bonds, and that securities of
that kind are rapidly going into the
strong boxes of investors. The supply
of the so-called gilt edge" variety has
become very small and investors are
obliged to accept the newer issues,
many of which are quite as good as
those of more established rating, and
sell at lower prices merely because they
are not so well known to the public
There are many issues of safe bonds
obtainable at from 65 to IS. In a ma
jority of instances these are certain to
work up towards par within the next
year vi INOs anu lIlCy di6 ICdily IlOIS
attractive for investors than anything
else in sight. They pay from to 6R
per cent. at current quotations, and
are really better than almost anything
to be had in the shape of standard
stocks.
A majority of the so-called collateral
trust bonds are in this class, and they
are meeting with increased favor as
their real value is looked into and pass
ed upon by competent judges. Bank
ing houses of the highest rating are
fathering these issues, and give them
the benefit of their unqualified indorse-
ment. A notable fact in this connec-
tion is that the banking institutions
making a speciality of the better grade
of collateral trust bonds are those
which kept aloof entirely from the fu-
rore of promotion and wild-catting
which involved concerns of even great
err prominence in the financial world.
AS a result, their Endorsement end
friendship now goes much further than
the promotion houses. They stand bet