New-York tribune., 1906-01-21
The Financial World.

rer above
nany's situation far improves that oiiioia-
d,sco,,nts are cut down a full point. On every
European bourse not excepting RusSi"
strength is manifest.
Vet during the week we have had the GUS
tomary quota of market bugaboos-no' ono
lasting Some South American eHerVe'0
Morocco's much foreshadowed conieie
trade disquietude, copper diVloehu -
stock pools in Iquidation-long anu Ie"i 81.
catalogue Of Ills proclaimed py eEei' FTt
every minute And out of it ALL ho1tliAe
one thing, except extension of an un -. -
interest The notion of adverse mann 'oi'
that we are having a market tha' can
stampeded by fabricated scares "1li nave -
obondonAd Common-sense markets are not oe
r,oIIshed that way-for conmon-sense HlarA
ia precisely what in its development the present
market is; and what common-sense mas "uiu0U'
cornnlon-sense can maintain
This does not wink at reckless processes IN the
"bulp, o1arter There Is offending on that SIDE
some performances in lifting quotations pelhs
fragrant to the point of stupidity, deceit bule-
tined by stocks run out on the tape III 'oi"--'
and apparent buoyancy-transactions executed
in effrontery, inspired by bunco-represeii'-
ing the batting OF traps. and not one lhins
elise ONLY shortest sighted champions or the
,, arlet can affect to ignore or smooth over TINS
existent feature and its brazenness "hdI INC
markets real friends realize and act upon 10 uI0
necessity-even more acute as market oFoau
ens-for scrutiny to find out what Is DacA Vi
market value. Discrimination. always lne p0A
of reasonable security market conducI Is a.
this iuncture In this market no matter OF per
functorv form it Is urgent. Taking tips oaslile
market commitments on points" may De asree-
araa exercise for a. time: but at best profit SO
mazda ts onlv an accident. Risks so taken never
fail to assess eventual penalties. And' III the
presence of prevailing conditions. no" u11neceS
sary is the reckless taking OF ultraspeoi"
chances These are times OF open accouiiIii6 "
fairly conducted corporations. Ihe ooP'
that Rides its accounts is company entitled 10
s1,spcSon-regardless OF its size-regardiesS u
anv conseouentiality in its board Oh oirec'ois
Having hundred millions Of outstanding STOCK
doesn't make a blind pool anything eIse 'nah
a blind poland no blind pool DIG OF liO'i0' -
safe repository for an investors FUNDS.
That men of character and large afIalrs are
interested in the markets development 'naI
such interests are even dominantiy HlliueH'i'i'
ia amply attested in many ways, ana hoIdD4S
by the fact of activity and buoyancy III ll10
groups of highest grade securities those coiLi-
Toandine extreme premiums above par value
Take as example st. Paul in yesterdays Market
rising offhand several full points upon buying
eminent fnancters So it is in stocks like Great
Northern and Northwest and Omaha, delaware
and Hudson and Lackawanna and Reading,
Union Pacific and Northern Pacific, NeW-1orh
Central and Pennsylvania. Masters in the money
world are at current prices investors without
any effort at disguise whatsoever. To such
minds national prosperity means something
The million dollars per day Of increase in the
country's cash sales to Europe-al past inter-
20 lad
such acute observers teaching lesson Of pes
siroisnn-they generate unstinted confidence
And beside such example the performances Of
professional Stock Exchange nlourners are now
utterly pitiable!
In this, though, is disclosed the very principle
I have urged-the principle Of wideawakeattve-
ness ability not merely to recognize the exist
ence and expanding consequence Of widespread
good times conditions but the coincident ability
to discriminate in the making OF investments,
being sure that in every specific transaction in
trinsic value is traceable.
This view does not, however, involve any
dictum requiring the selection of stocks of high
price for profit. 1t is recognizable, indeed, that
those interests OF prime Importance here quoted
do not affect TO conf1ne themselves to shares
whose quotations already mark them as gilt
edged The very foremost were buyers Of
Union Pacific and Northern Pacific at figures
far and away below values now registered But
when they bought at 10, now they buy at
160 and 210 their buying had for foundation alb
so1utely the good reason that worth there
provable worth-provable then as provab1e now.
Since Northern Pacific and Union Pacific and
Reading and Baltimore and Ohio and Atchison
were at 1O-au sold virtually at nothing-we have
had revolution In national business conditions.
Yet relatively few are the stocks that have
respondingly reflected basic Improvement Our
market is stn full Of bargains. 1t looks, indeed,
as if before long might have predominant
interest developing in the lower priced shares If
so there will be nerited advantage for long list
including sterling issues. not yet popularized to
the extent that intrinsic value warrants-in this
list figuring conspicuously stocks like United
States Steel common. Erie common, Southern
Railway common Chesapeake and Ohio Chicago
Great Western, Denver common American Ice
and Virginia Iron, Coal and Coke-the latter
intrinsically the cheapest metal security 1Inon
the Stock Exchange.
And in the outside market are similariv at-
tractive opportunities. Take. for example the
shares of the International Salt corporation
quoted around 40. They receive 4 per cent
dividends netting virtually per cent. to the in
vestor-so exceptional to be commanding the
attention of bargain hunters who are responsi-
BILE for the stocks current activity. In the COM
pany's directory are 1naneiers OF such strength
and integrity as to warrant this ouickening
business sense: and-important developnents
impending-it will be surprising If the stock does
not speedily have substantial market ir1nrovs
ment.
Upon the Stock Exchange similar intrinsic
value invitations are offered-notably by Ameri-