The San Francisco call., 1905-02-10
STOCK MARKET OUTLOOK.
Pronounced Strength Shown by the
Whole List.

Pronounced Strength Shown by the
Whole List.
The New York circular Of Henry clews
Gays:
Many stocks are now at record prices and.
measured by customary standards, are es high
as conditions warrant Under ordinary cir
cuu'staEces reaction would be in order as
soon asAJhe January investment demand had
been satisfied. especially rich operators are
known TO have materially diminished their
holdings and the big banking interests are de-
= (-ioec-y conservative in their views regarding
The futurs- But the entire market shows
oegree or strength that is surprising and which,
-or TIE moment al least. sets aside the usua4
Standards or judgment. The fact is that when
business is good and money plentiful II rs al
most impossible 10 materially depress market
values. although they may be unduiy high
long continued prosperity has impaired de-
cideo degree of confidence among investors,
ana which has been strikingIy illustrated by
me comparative insensibility OF the market 10
agitatiols- TO the political disturbances in
Russia Under ordinary circumstances tne
movement in Congress TO give the Government
power 20 tx railroad rates would have created
serious alarm ia Wall street; albeit there Is
little prospect OF such legislation becoming
Law.
Much OF the business on the Stock Ex-
change has been OF professional character
and manipulation appears easier tor the rise
than the fau. Money is plentiful and easy
and this is q powerful instrument in hands OF
Cfqucs, which single out first one property and
then another for their operations Since pros
nerity mas been amply discounted ana the IN
Festmenr demand, except for good bonds, "a
subsiding the chief arguments for advancing
prices are dividend prospects or deals OF one
slrt or another among railroads These are
The potent influences on the stock market at
preseut-iEfiuences Il may be noted, which IN
The past have generally marked the climax IN
an upward market. In the present situation.
however, Il would De premature 70 assert laAt
The top had been reached, for unless restraint
ol some sort comes. either through a turn IN
-he uoe O. AFFAIRS or conservative actloh Dy
our leading bankers. are almost sure TO
see a revival Of unhealthy speculation
EFFECT OF ABUNDANT MONEY.
The chief basis for this opinion is that
e business conditions remain satisfactory the
market cannot forever Withstand the imitation
arg e1tect OF abundant money The circulation
0r our national banks has been increased 70
Sl6T. .100. GOO compared with S3S4. .00Q. coo this
--nle two years ago. Meanwhile our gold sup
Uir has been largely augmented. so that the
nations monetary supplies have been increased
our ~ all proportion 70 the growing activity
10 business Bankers are now looking for very
easy money during the next few months
e1uditiUn which must inevitably affect security
values Already some Of our large institutions
have been buying good stocks and bonds for
ternporary investment on the theory tnal Iney
would yield better returns than loans Had
we an elastic currency system, such as Con-
eress las been repeatedly asked 70 give, We
should be spared the danger Of such eNeesses
and the supply OF money, when superabundsnI
would contract naturally until The eQuiil orluTn
between supply and demand was restored 70 a
healthy basis such situation viii naturally
facilitate gold exports. altnoogn recent snip
m=n-s were mainly attributable to genuine
EurCuCau necessities
Indications point toward continued activity
and in the absence OF unfavorable develop
uents prices may advance II is, however,
4 ci1ued and artificial market, particularly
subjected % the setbacks arising from such
Conditions. AS before said, cheap money ana
good business are not bear arguments, and the
facilities for manipulation are somewhat un-
usual fortunately the public IS n cautious
mood and not cver-hungry for high priced
FANCY investments. Purchases should continue
Or D. made with close olscrlrniratlon ana
profits taken all pronounced advances.