Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1904-10-12
SITUATION.

IN many cases are as high az condi'
tons warrant. but the technical po-
sition OF the market Is such that the
advance may easily be continued to a
higher level, and the prevalent opin'
ION among those who ought TO know
Is that the upward movement has not
by any means reached its culmina'
ton.
4 There have been genuine and well
grounded reasons for the advances
thus far. A satisfactory harvest. good
prices for farm products. easy money
In abundance. a partial revival OF bus
mess and a strengthening OF conf
dence in financial circles have all i'm
parted a better tone to the stock mar.
ket and afforded legitimate reasons
for the recovery which has recently
taken place In securities. Consefya-
tive opinion Is that stocks are now
selling az high as justified upon eth
er present or prospective conditions
As prices rise the temptations 10 real
ize increase and a good many shares
are already selling at exceedingly
high figures. Not a few cautious PEG
| pie argue that all the satisfactory in
t~Iuences In the market have been am
ply discounted, especially al some
Of the most optimistic expectations az
to crops and industry have not been
realized. On the other hand, exper.
lence reminds us that all important
movements run TO extremes. During
the last serious declines values went
much below intrinsic worth, and now
that the rebound Is on there Ia moth
ing In sight 20 prevent the pendulum
swinging as far in the other direction.
That Is the almost unbroken history
Of market movements, and il as nee
essary a part Of correct reading of the
future a. Ia the legitimate study of
crops. finances and tie multitude Of
other factors governing values. Hu.
man nature II. still responsible for ex
trenies Of fear and confidence, and il
cannot be entirely eliminated from
stock market fluctuations. Investors
may safely ignore this factor. but pro-
fessional spectators usually play
with more or less skill and success
upon these transient Influences
which constitute an important source
OF profit to the sIsillful trader.
But a really more important factor
than mere sentiment In the present
demolition Of the market IL the atti'
tnde 81 the big holders. Our heavy
capitalists we're large buyers Of Sc
curities on the last decline. chiefly
as a matter OF self-protection. These
securities they still hold. not having
succeeded In distributing them to any
extent. The powerful support OF
these holders. as well as that Of the
financial institutions which they con
/ troll, la the chief element In the mar
ket at present. These gentlemen have
succeeded In putting the market uf
upon themselves. They have created
new and wide activity among the va
rious cliques. without. however, thus
far disposing OF any large share Of
their surplus. They are thus OF ne
cessity committed TO the bull side.
and al there Is nothing In sight to In
~terfere with their operations, except
public indifference or limitations Of
the money market, the chances Of
their success are good so long as the
various cliques hold together. When
ever the market Ii strong there fol
lows more or less inside selling,
which, however, Is well disguised and
does not yet seem to have been suf'
ficient 10 weaken the general market,
No adverse Influences have deyel-
oped In the outside situation The
crop killers have lost their vocation
and while the yield Of corn. cotton
and wheat Is below early estimates,
which In The almost unbroken rule.
still a liberal supply OF corn and cot
ton Ia practically assured, and SO far
as wheat f. concerned this country
Is likely to secure compensation in
high prices for the 100. 900. 900 bush
els which 1t seems able to spare for
export A very encouraging feature
is the continued growth of bank
clearings. which ~ not entirely at
tributahle to Stock Exchange opera.
tons. Another good feature is the
improvement In railroad earnings. In
the second week Ut September &c rail
roads reported a gain Of 6 per cent.
and in the first week 50 roads an
nounced a gain Of owe 1 per cent.
These returns. which have been stead
lily gaining. %substantiate the hopeful
views recently expressed by railroad
managers, besides demonstrating the
Increased activity Of general business.