The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1904-10-09
LONG SIDE
IS RECKLESS
Speculation i'll Stock Market
Running Wild for Past
Few Weeks.
HALT HAS BEEN CALLED
Banking Interests Still in Con-
troll, and Bull Movement Will \
Probably BE Resumed.

= q i - 4 + !
Speculation In tho stock market for. the past
few weeks has been running too wild. and In
tho latter part OF this week II was deemed
advisable to check tho recklessness of,the long
side and to stimulate larger short interest;
hence the dull and sagglng tendency OF the:
past few days. The banking interests, how
ever, arc still in control OF the situation. and
the bull movement Will probably DO re-
sumed after the market has had a reasonable
reaction {
81 Stocks are still In strong hands and no ex-
tensive liquidation is anticipated. and no ma
tcrial slump In prices will be permitted. But
a reaction has been long overdue and the
market viii be all the healthier for a ten-
porary setback OF reasonable proportions. Such
Is the expert opinion iii Wall street.
The Streets Opinion.
What Is commonly called Wall Street opinion
does not mean tho views entertained by5
bankers and important financiers. who rarely
make public utterances; hut tho phrase stands
for the gossip and rumor which float into
the street from a thousand sources. playing.
m Important part in immediate fluctuations OF
values. often to an unduly magnifed extent.
"A is we'll known, such Wall Street opinion
for long time past has reflected pessimism.
Curious Illustrations OF this are found In cur
Z rent criticism of every rise III the security
market When q stock advances little is heart
$of value or merit or earnings but Instant
h " rllnora of deals are distributed with, the
Implication that any rise must be unwarrant-5
written opinioiis lately to the effect ~ that
recent market improvements are the result OF
70 ~
view. Manipulation can unquestionahly take
up. a. property here and there and artificia!lyj
advance 1t for a time, but that any manpua-s
tive cOlrbia ton can be strong enough to have
bought or handled nll securtles showing gains
since last May Is not to- be thought of. Y,
power involving most OF the floating capital
R OF the country. m yigs 5
Natural Conditions.
Despite Wall Street opinion. IT appears plain.
that the movement which Is now gathering
nation ins:the strength and promise OF natural.
conditions. Prices for securities are. not ar
ways ul,im mute
initiation: Take prices Of TO- day. which.
1909 but which look low compared with tho
prices 95of 1901 'o2. u Wall Street persists In
Ad
falaclous; the true method OF arriving at
values being ANALYSIS Of earning power, by b,
which test most quotable prices are still
below the Just mean. y.
Among dividend paying stocks are few which.
seyona
opinion \ Of many conservative financiers this
fat.enins Of surpluses must before before long be
The Real Feature.
There is no doubt Of the wisdom Of an ac.
cunulation% of sufficient size to prot .diyi-
dends absolutely. against possible hard times
but there; certainly is.a Limit 70 tnht nec ct.
perfect safety a considerable distribution OF
assets to stockholders can be made. But part
from this. z Judging dividend payers merely
by tho dividends now paid, there are plenty
OF good, sound. earning properties ldng
an Income to purchasers quite out OF line VIII
estate and more notably from the use OF
money as loanahe funds. Hence. surplus
ings. This. not manipulation. is tho over
whelming feature OF this years security mar mar
Imitation can come only after a consldera-
BILE period OF public speculation when value
Is lost sight Of by the development, t., Of "a a
claim that there has been any public specu Y,
lation-in fact they advance the absence 81
ehG nr ,saspn yaluesase rest upon
strong foundations. the, result being that re.
re- dna no o horde
time there is a slight drop in quotations--an
Important element Of stability. Z
Conditions Excellent.
Financial conditions We're never stronger
than they are today; more securities e. = are II.
and the secretary of floating SUPPLY Is a mat
ter Of daily establishment; in brokerage cir
cles. ] is not reasonable that manipula ton
( could be responsible for this really inspiring
market, which is beginning 70 reflect the ac-
acumulated prosperity OF our country. IA.
Reports from Wall Street show that most
/. OF the prominent exchange houses are hopeful
4 for tho future. and think that conditions
Will sooner or later bring about q healthy
and genuine bull market. which with the ad-
+ ingly low rate Of money. should not be a
question OF a very long time Is e 4. s III
The improvement in the steel ard iron In
Edustrics and the increasing OF the railroad
earnings, the assurance OF abundant crops and
tho political outlook are all encouraging and
give a hopeful future to tho stock market