The San Francisco call., 1905-01-27
rHD FEE1dNG IN WALL STREET.
Outlook Good, but a Warning Note
Sounded, Nevertheless.

A Ieadtny financial circular of Wall street
'5ome Of the, roads are now beginning to
eeei the benefits Of the big OUTLAWS Of the last
two years. and; II earnings continue on the
present soals no material recession in the
values OF good railroad properties is at present
In sight The railroads. however,. are not
. rising against oppressive railroad manage
Eneut and the threatened strike on the Penn
yavsn.a -yystsm IL disturbing issue mas
soss no further tSan & % the stoppsse ,p Of rebates
p ssa w II ssns the o. al
gut any attempt by the Government to NIX
eonso @ ga ana % poiiucsi system % and expose M @ us ito to
begtous distnrbahce In values.
'Generl trade continues active for the sea-
he benefit Of = profitable harvest. Even the
sossoa plsntsy ere doing well o naslns YIN hs.ne sG,e
auats capable Of holding the balance of the
kop Cor better prices If. they choose. Pig iron
ero6uotson = going along at record breaking king
fateI and, while the top notch has probably
keen reached. this great industry is certainly
SnJeyfng q revival Of prosperity not dreamed
Progressing at rate unusual for this season
f tho year and are likely to- continue unless
nsifnts1n nonsy ssp IS pieniifui at easy rates rates
and, though the demands from business chan
neis are Increasing there 10 little prospect of
hny advance in rates until the April settle
fnants approach Somewhat higher rates than
bow exist would be wholesome. for if profit
channels moro hazardous uses are sure to be
found for idle capital. The present super
abundance OF money is one OF the chief sup
ports OF the stock market at present and is
stiu reflected in the good investment demand
for bonds, which continues active and has eX-
eseded all expectations.
- THE STOCK SITUATION.
''The stock market situation just now. is one
that demands much caution. There pow
erful cliques ready to take advantage Of
good business situation and to manipulate first
one stock and then another, endeavoring by
repeated advances to secure larger follow
Ing and thus create active market. IL
nothing interferes they viii probably succeed.
since there is little If any. antagonsm
yet from other large operators. But there are
other facts be remembered. Stocks have
been steadily passing from strong into weaker
actively committed TO the long side. They be-
lieve that all the Strong factors in the situa-
tion hayes been amply discounted, by present
high prices; all the good news about increased
dividends ETC., having been known to them
for weeks past Anti railroad anti trust and
anti tariff agitation do not promote confidence.
Moreover, the situation abroad requires watch
ing Russia ist SnFefy distressed. - The Cars
life has again been endangered and Russia's
credit is under the severest sort of strain.
Only by most extraordinary measures is that
all the principal financial markets of the world
including our own would feel the blow. The
local cltques which are now 80 successfully
manipulating this market may carry prices TO
a still higher plane; but there. sufficient
forces at work to render their success in
creasingly difficult II not precipitating sharp
reactions when least expected.