The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-07-24


The hiph point OF this recovery was
reached on Wednesday Of last week, with
twenty active railroad stocks selling at an
average price Of 1858, or within less than
per cent. Of the previous high point on
March 10, when the average was 127.lo.
II ia seen, therefore, that at its highest
point last week the market showed almost
A complete recovery from the depression OF
prices in April and May. The manner in
which this recovery was accomplished Is
the subject Of consideration. Throughout
it's progress dulness was the superhciai
phase of the stock market most commented
upon from day to day. 1t was in the hret
week OF June that prices resumed theH
upward trend and since June the average
Of daily transactions on the Stock Exchange
has been only trife more than eoo'oOo
shares. During all this recovery there
has been but one milllon-share day on the
board. Previously, that Is, toward the
elimination in March OF the last upward
swing, the daily transactions regularly
exceeded million shares day and ran
as high as 2.OOO, 900 and over reaction
OF less than two months duration-from
March 10 to May 22-sufficed to reduce the
public's margin commitments In the market
to purely nominal proportions, and on the
recovery that has taken place since juno !
the public's speculative account has not
been materially increased. Theindinerence
of the public. indeed, has been necessarily
complained Of. There are largo commits
sion houses that have scarcely any more
stocks on their books at the present time
than they had two months ago. The re-
coyery has been made without any outside
support whatever, and largely without
the assistance or participation OF the big pro-
fessional spectators Of Wall Street. many
of whom have been absent. The Western
contingent made turn on the long side
OF stocks and withdrew, but it's operations
were more or less incidental. and although
the market became less active after its
retirement fortnight ago. prices advanced
further on a reduced volume Of transactions.
Abrupt and violent reactions are char
acteristic Of bull market, just as violent
and briefly sustained recoveries are char
acteristic Of bear market. The general
public never gets the full benefit Of the 70
actions in a bull market. 1t Is lucky to get
any benefit out Of them at all. After such
reaction as took place in April and May
there is always the feeling that prices can
never 90 up again, or at least that the Duh
market has eliminated for good. lot OF
weak wasted bull accounts have gone over
board and everybody is discouraged. It
Ia not until the adv nee has been unmis'
takably resumed, and generally not until
there has been almost a complete recovery
that people are persuaded that prices car
90 up again. Confidence Is restored and
the public comes in once more and buyt
stocks. In the last few weeks 1t has beer
demonstrated that the market can 60 ur
and confidence is returning accordingly.
Those who would engineer q sustained
bull movement in prices from this leve
have a pronounced revival of bullish sen
timent behind them. The influences con
tributing to the support Of this sentimen
are varied and seem almost Irresistible
They embrace increased dividend disburse
ments on stocks like Reading common
Baltimore and Ohio common, Union Pa
cific and Amalgamated Copper; very pro
nounced Improvement in the steel and irol
trade. a highly satisfactory general crol
outlook the continued growth OF railroad
earnings which steadily increase value
as distinct from prices, and expanding gen
eral business Up to this time there has beef
wholly lacking in the market the kim
of initiative upon which the public Is won
10 act It has been said that bullish am
munition Is bein wasted. The market ha
not been made to respond o what the Stoc
Exchange calls good news in manne
calculated to stimulate the speculativ
imagination. The inference is that the 90
called big interests, to whom Wall stree
looks for stock market initiative, are In n
haste to promote genera speculation.
There has been no effort to distribut
} stocks to commission ousPs on this ad
vance. Expressions Of banking opinion az
extremely confident and optimistic, but a
though se' ling campaign in stocks woul
appear to be very feasible under existin
conditions, with commission house holding
at a minimum, with general sentimer
bullish and with influences at work whic
arc favorable to aggressive operations o
the long side OF the market. it is apparent
cling deferred. Indee !, 1t 10 to be inferre
from the attitude Of those who might /
expected to profit most by such campaie
that they ara in no hurry to invite publ
participant IN in tn stock market.
It is a habit of the speculative mind
demand original reasons, real or imaginar,
for every little variation Of an effect oil
viously produced by some general caus
, With the effects Of certain causes Wa
Street becomes so familiar at times throua
= the constant hearing Of set phrases, as, e. g