The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-01-21

INITIATION In STOCKS

Several active speculative stocks
sold yesterday on the New York ex-
change at the highest figures ever rec
orded, and unless something entirely
unforeseen shall come up to check the
fever, there can be little doubt that
other issues will speedily follow. The
big bull market, long predicted, but
held back by unfavorable influences,
began to show itself early in the present
month. The campaign has been carried
on, with the, plan in mind to draw in
the public. For long time outsiders
have not appeared in Wall street in
Important numbers. When great de-
cline comes, and the many who play the
lamb find their margins wiped out, spec
'ulation receives black eye, and the
people stay away from the street for a
long time. just how often the public
can be drawn in depends upon the
severity of the decline that last let them
out, the condition Of the country, and
other things.
! AS a general proposition it may be
stated that the public gets into Wall
street about once in four or five years.
Then it is that the irrational and in
discriminate buying begins that sends
prices mountain high. and prepares the
avalanche that finally engulfs these
outsiders. " 5 ao
The last great continued upward
movement in. stocks reached it's cul-
mination in May, 1902, at time,
when, to an observer not acquainted
with underlying conditions, it might
have appeared that all the country had
gone crazy, and that legitimate enter
prise had been abandoned in the rush
to get rich quick. The crash engulfed
the late Corners, who were carrying
the inflated stocks that the profession
ais had worked out of. The lesson
struck home, and from that time to
the present the public has not appeared
inssthea street. - /, sis41.,.. s&s. ~
Everything is forgotten in time. The
country is now SO prosperous that peo-
pie are again inclined to take chanes.
Thus, within the past few days there
have been reports of large business on
the. buying side coming from outsiders
who have had attention drawn to Wall
street by the activity, the money
made, by the Fortunate. and the ex-
IRENE likelihood that the J. end is not
yet, and that prices are still to rise.
One Wall street house Of prominence
has alreadyJ sounded "a note of warn
ing. Thiss:will have no. effect, if past
experience is anythingtto go, by. Some
time, it may be soon, or it may notsbe
until next fall, there will be a whirl-
wind market. When prices have
reached the dizziesti heights the smash
will come. sss4 .,.s.g. 49,,
Factors Of Importance have been
favorable of late. Thru the fall
months OF 1905 all influences, except
the, nnquestioned prosperity of the
country, were against a rise. Now
there is the other story. Money is
flowing back to New York, and rates
are again very low. Commercial, f.
nancial and governmental reports are
; favorable. Even the elections in Eng
land helped the bulls in America, for
many labor candidates were success
full, and some Of the scary old English
moneyed men, of the conservative
stamp, bought American securities in
their January Refreshments, instead
of English, thus helping along the rise
The situation is such as to entice
! anyone into stock who believes in his
country. The important fact that the
| inexperienced buyer will overlook is
that while conditions are all highly
favorable, the time to have bought the
stocks was afteryst the last great de.
cline, or a year or two ago, when they
were lower. People forget, many in.
4 deed do not understand, that Wall
street discounts the future very large.
lv; that while it is true that sum.
mary Of conditions in the country to.
, day presents an attractive bait, Wall
street has seen all this coming, and
if it be true that present conditions
warrant high prices, one may be sure
that prices are fully abreast of them.
! No one can forsee. what may arise
to check the imitation. War, or for
leigh complication, or other things ever
less serious, might. do it. But barring
y the development Of any such influence
it seems almost certain that the coun
try, some time in the present year
s will witness another speculative de
bauch such as New York presents tx
3, its view at intervals Of a few years.