Evening star., 1905-08-27
Financial News Letter
BY W. G. NICHOLAS.
al Correspondence Of The Star.

Special Correspondence Of The Star.
NEW YORK. August &C. 1905.
The workings Of the stock market
these days betoken vigorous under
lying strength. The situation is full
OF virility and signs everywhere tell
OF popular awakening to the buoyant
speculative conditions Commission busi
ness Is increasing and the operations of the
professional element are also growing IN
volume and emphasis. Occasional reac
tions occur, and there is more less profit
taking at every step of the advance, but
the controlling forces are energetically at
work for higher prices. Manipulation is
unquestionably in evidence, but great
majority of stocks felt to have intrin-
sic merit and they are attractive alike to
investors and spectators. The country
whole is fairly pulsating with prosperity
and so far as can be seen there Is nothing
in sight to cause alarm for the future-for
another year at least An early frost
throughout surplus corn states might cause
partial failure in that harvest quarter, but
aside from that the sky is almost free
from clouds of uncertainty. Money rates
are hardening somewhat which was to
have been expected at this season or the
year Funds in abundant supply. how
ever, to meet every legitimate requirement
with something besides to encourage spec
ulation for rise In the stock market.
Commodity markets seem to be more two
sided than they have been at any time for
months Peace negotiations between Japan
and Russia afford day by day converse
tional entertainment, although the out
come is not generally regarded as of para
mount Importance to the course of the
American stock market.
Now that the stock markets are under
headway and the outlook strong for ad-
vancing prices 1t becomee The part of COM
mon prudence for small traders to get
their money out of bucket shops and keep
it out. If there is any fact that is well
established it is that bucket shops cannot
live in "a genuine bull market. They stand
toward their customers in precisely the
same relation that faro bank does to
the gamblers playing against 1t. The
bucket shops take the money from their
customers as bet and as nine out Of ten
minor spectators are bulls, the shops lose
every time the market advances. When
the market takes an upward sweep 1t spells
ruin for the bucket shops and they lay
down by hundreds When a shop fails its
The warning cannot be sounocd too loudly
or too strongly: Keep away from the
bucket shops" If you make money on
your trades you will stand to lose it in the
inevitable collapse of the institution In
which you have your cash.
A live factor in the consideration Of
in the steady increase in our population.
Every year the population of the United
States increases at least f,000Wo, and since
the. tide of immigration, has swollen the
rate is approximately 100000 annually.
The equivalent almost of a city the size of
Chicago more than Philadelphia, consider
ably in excess of Boston and double of St
Louis The annual increase would dupli-
cate the population of any one of twenty
states of the Union. This means more
mouths to feed and greater consumption OF
everything that enters into everyday use
it means a great increase in the earning
capacity of the country. 1t means more
tonnage for the railroads. Too little Wall
street thought is given to the population
phase of the situation.
The big insiders of the steel trust are
almost to a man enthusiastic about the
future of the giant corporation. The poor
organized some months ago in the steel
issues continues in force and there mas
been recent further large accumulation OF
stock in anticipation of still higher prices
If is the firm conviction of the heavy
weight pool interests that preferred VIII
sell around 120 before the end OF the year,
ana that common will be firmly established
around 80.