Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1905-12-26

lore the close OF the year. Wnen
many stocks are selling out OF all
proportion TO their intrinsic value;
when credits are extended TO a de-
gvee V experienced In the history
OF the country. and when money com
mands sucn exorbitant rates as have
been paid during the current month
II Is time that some restraint was
placed upon the speculative excuses
that are o threatening the Street"
Bankers will 500 be obliged to dis
criminate more closely both az ia
collateral and to borrowers. The
situation Is such that II any further
trouble develops we are likely to see
a sharp reaction. Very little conf
dence exists In the present level of
values; and that means q rush to sell
md take paper profits as DOR as II
IL generally recognized that the turn
has been reached. There IL no short
Interest In the market OF consequence
10 support values In such q contin.
gency. and the Investment demand
will remain q very limited factor
while prices continue at the present
high level. Money Ia already freely
seeking other channels OF investment,
going into real estate or other rpore
profitable directions. = (
Al, VI have. repeatedly stated. On,
other danger confronts the market
which appears to be constantly over
ooked ana that Is the strain upon Ros-
sian credit growing but Of the hope
less chaotic state Of AFFAIRS which
thcre exists. Only by aid Of the most
powerful bankers In Europe II . stlll
more serious break avoldsd;ta Russian
securities. II ID TO be hoped that such
efforts will be successful and the col
lapse of Russian credit averted. Should
disaster occur. however, 1t Is folly to
imagine that the New York market
will escape Its effects. for London
would be called upon to assist Paris
and Berlin. and In order to do so
American stocks would be The iirst
to be sold.
As the year draws to q close It
IL easy to ind abundant material for
sclt-congratulatiq n. The country has
experienced . gear OF unparalleled
business activity, all records being
passed both ~ 10 volume and pr0fIt.
Naturally, such IN era has beg0tten
many unfortunate excesses. BUSINESS
methods have become less rigid; over.
confidence has tsxen the place Of a..
binary caution, and continued abuses
may sooner or later threaten tht cOuh-
try With q setback leading ito an er!
OF depression. At the same time,
however, tsre Is no occasion what
ever for taking 4 diseouraging view
OF the future. On the contrary, fherP
Is every reason for h~0pafnlnsss 10. up
business world. Our, farmers, .Mhp,
are still the. backbone d the country.
are enjoying extraordinary prosperity
III both the south and the west. kApt
some. time to come they ! likely p
be large cOns1mers Of NJ the~nece&
stiles and many Of the Injuries Of lffd
Our industrial classes am also well
employed and at high rates Of wages
They too - % class ane enjOyM4
more Of the necessities, and luxnrles
OF lie than usual. Our mineral FIJI
iustrfes are going through q wonder.
full stage 81 development and earning
large dividends. The only thing I'D
sight 10 hinder a continuance Of our
activity Is our financial ex-
,esses, and 1t would be far better to.
recognize this fact at orce and put
IN the brakes than TO allow indiscre-
lions and ABUSES to progress until al
collapse Is invited. wish
to be distinctly understood that n
I'M optimistic regarding business pros.
pects; btA Wall Street, as is frequent
" the case. Is inclined to Oyerdis.
count the future. and the ov~endisccunt-
rg Is likely to become mueh great
than usual. The remedy-which Is
,ontraction--may be u~npleasant. but
d may soon be necessary. Many
have gone from stroug into
weak hands, and this process will be
continued unless the note OF caution
. sounded vide and strong. For the
present we advise gradually taking
Profits on me hulges. The c,mntry Ii
;afe and sernd, hut 1t Is a god time
o prepare for squalls when sumo hine
$ most brilliant.
The mystery overhanging the mar
,et for q long time In connection
With the tennessee Coal 4 Iron com.
,any has been solved by the recent
.hange in ownership. and the mana.
,ers and directors OF the property.
rhe previous mystery attending Rock
STAND, Gaming Its preferred and, COM
non shares to decline, whilp all 9th.
n ,stocks were advancing. has also
xnOwn. There tin remains
! mystery regarding N. Y. Central and
Union Pacific In connection with their
large advances. The mystery
. deepeAed n connection With Union
b., It's COINS up and Southern
sacinc at the sams time going down.
rho effect Of these Mysteries upon
he market, however, sesms to have
,een pretty well discounted. The Qpes
ion now II, what ncxty The stock
market On. the present high level u
arices II not likely to be. y lively