Richmond daily palladium. [volume] (Richmond, Ind.) 1905-1906, 1906-02-12
AND STOCK MARKET Is LESS
STRONG ALTHOUGH NOT
FEvERISH.
BUYERS TAKING A VACATION
Threatened Coal Strike a Menace
To Market Winter Has Fa-
cilitated Building.

New York, Feb. ia change Of
sentiment is gradually creeping over
the stock market. The feverish IRA
tional speculation which character
lied December and January, his sub
sided and is giving place to quieter
saner and somewhat weaker tenden-
cy. Technically, the market is less
strong because many large holders
have sold considerable lines of stock,
and temporarily, at least, retired
from the market for the purpose Of
enjoying vacation. If all accounts
be true, the absentee list during the
next few months is likely to be unus
ually large, for the reason that a
large number of operators have dis
posed of their surplus stock and are
not inclined to reinvest until prices
reach a substantially lower level.
Without this element quick traders
may be confronted with narrower
market, hence will cause a noticeable
decline in transactions. Fortunate
~, the public is not in the market to
any great extent, the principal buy
ers Of stocks lately having been the
"nouveu richie" who possess an
abundance of cash, but a compare
lively limited amount of experience.
From the best class of investors there
has been very limited demand for
securities. During the month Of
January about 100 millions of new
bonds were placed on the market, and
though these were readily absorbed,
it is noticeable that purchases by the
shrewdest class of investors were
lighter than usual. Experienced
buyers are turning their attention to
other directions for investments; no
tably, in the real estate field. Not
a few heavy investors are carrying
much larger balances with their
bankers than usual, awaiting more
favorable opportunities.
The threatened coal strike is GER
tainly menace to the stock market,
since it materially affects the value
of very important group Of stocks.
There are those who believe that no
strike will occur and that some sort
of adjustment will be reached; but it
is quite certain tina renewal of la
Dor agitation, growing out Of this
strike would impose a very consider
able check upon new enterprises,
which are already seriously handi-
capped by the high costs of produc
ton. The fact that we are at the
top of big boom is universally rec
ognized; and the moment that it is
perceived that the expected turn has
been reached, we are likely to see a
very decided abatement in new pro-
jects, with a consequent slackening
of demand for crude materials and
labor. Another difficulty against
which the coal trade has had to con-
tend has been the unusually mild
winter, which caused a large falling
off in the consumption of domestic
sizes in anthracite. The same infu- |
ence checked the demand for heavy |
clothing. On the other hand, the
open winter has greatly facilitated
all forms of constructive work. The |
effect of such an unusual winter, how
ever, does not end here. The result |
to the crops is still an open question, |
and will be matter Of much doubt |
for some time to come. In fact, we
are now approaching period when
the crop outlook is the most import
ant single factor in the stock market. |
There is good undertone to the mar
ket and general financial conditions
appear to be perfectly sound-sound
enough at least to produce sharp raj
lies whenever the market becomes
oversold. For the first time in
about a year there are indications of
fam-sized short interest, without
which the market is altogether dam
gerously one-sided. 1t is true that
the bearish contingent at present
shows the timidity of youth, but as
it natures ard gains strength and
srcce. ), lis operations are likely to
5econ more aggressive and NOR i'm
porte t.
In short, % tendency in all our
markets r. on, lie back towards
the Lca''a' nal This does not
rean { II activity or depres-
sion. 1t Means healtlie md SAT-
er and saner Isis Ger business ~