Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-01-28
Supporting Tactics.


In other cases supporting tactics were
continued. but evidence Of persistent selling
on an favorable opportunities had the same
effect on speculative sentiment as the shift
in other instances TO the avowal of views
for lower prices The reversal of opinion
In these cases was attributed to various
motives.
The extent OF the advance already
achieved in the prices OF securities has done
much 10 meet the growth of prosperity on
which they are based, and active discussion
is going on over the proper prices to rep
resent the actual enhancement of value
which has accrued to all securities by the
prosperity OF the country. In the highly
speculative conditions existing in the mar
Ret more Importance was attached tN the
movements OF special stocks.
There has been marked revival OF spec
ulatiOn in some of those which have risen
most IN the past speculation Their later
flights have been without visible develop
ments regarding the properties they repre-
sent and without any confirmation of many
OF the Tumors which were employed IN the
earlier stages of the advance.
Il IS the superstition that these later
movements are due to the entry of new
forces into the operations in special stocks
in the attempt to carry their prices into
untried upper regions which are distrusted
by the earlier 8CCumulatOrs. The heavy
offerings from the earlier holders have had
the effect Of frustrating the new designs
Disapproval of Excessive Advances.
The disapproval thus expressed of the ex-
cessiye advance IN some Of the hlgh-prIced
stocks was accompanied by organized eff
forts to divert the speculation into new
quarters of the market. The present ad-
vance in the market compared with that in
former speculative movements has been I'M
even. and the pushing to record prices of
selected stocks has left a large number far
below those touched in previous great pc
RODS OF speculation,
This is especially true Of the low-priced
stocks. The Increase in earning power
which increases the dividend rate on sea-
soued dividend payers is counted upon TO
bring Hon-diviGend payers nearer 10 the en-
1oyment OF a distribution OF profits TO stock
holders. The lower grade of stocks have
not advanced in the present market in pro-
portion 10 the rise In higher grade stocks.
The non-diyidend payers have been con-
EpiCuOus among the strong features in the
weeks irregular market. and there has been
an obvious effort by organized parties to
divert the speculation into these channels.
The success OF these efforts has met with
some obstacles in the conservative views
expressed by some of the directors OF COM
panies affected TO the policy OF begin
ming payment OF dividends rather than de-
voting earnings to the accumulation of
working capital Some OF the Industrial
companies which suffered severely after the
great advance Ia prices OF three four
years ago from the necessity OF abandoning
dividends once begun are affected by con-
serYatlVe Views OF this kind now
New Capital Issues.
Attention Is given to the growing offerings
OF new capital Issues to take advantage of
the present large general demand for securi-
ties. New stock and bond issues are an
nounced from many quarters. ana their
claims upon available capital must be
shared In the future market with those Of