The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1909-11-07
STOCKS ARE LIKELY
TO REMAIN STEADY
Declines and Advances
Should Offset Each Other.
Activity Unlikely.

NEW YORK, Nov. 1.-THE clearings
Of the leading cities for last week
showed an increase Of S9.4 per cent over
those Of the corresponding week Of last
year. On one day the totals. S756.461 .549,
were the largest on record.
Therein is the nub OF the Wall Street
situation; therein is the barrier against
any prolonged bull movement at this
tirne-therein Is the promise Of national
prosperity realized, and possible warrant
for even higher prices for securities than
now preVailing-but not until there IS a
return Of the millions being used 10
move the crops. although with the habit
that has become chronic Of d1scounting
events, Wall Street may discount the
return flow from the interior and start
the bull market almost any time within
the next thirty days for a clean geta-
way. The world of business. commercial
and manufacturing. is using money TOO
freely TO permit OF the financing Of the
crop movement and Wall Street at one
and the same time.
The remarkable promise IN the iron
and steel trade has been more than
realized. and there has been no let-up
in the booking of orders or in the trend
OF values to higher figures Everything
in the United States runs TO prosperity
ia the present and rather distant future
with the exception OF the gmallness Of
the cotton crop, but the sharp advance
in prices viii give the South the returns
despite the lack Of yield.
Market Action Natural.
The action OF the market all last week
had the warrant Of being strictly logical
and in keeping with sentiment Here
and there special influences produced
certain ACKNOWLEDGEMENTS II was a
case OF backing and filing and back
ing again. And the discounung Of the
bank statement on Saturday gave the
cue for the checking OF the good sized
boom while yet II was barely under way.
This week is apt to be much like last
week in so far as the movement in Sc
curities is concerned TOmorTOW's open
ing viii probably be in the nature Of a
slump, then the stocks sold yesterday
and late on Friday will be taken in at
a small profit and rally result, with
the net changes for the week not show
ing much greater losses or gains than
displayed last week-and there were
comparatively few Of importance.
The special features were gains Of
1s3s points in LackaWanna, 81 IN Har-
veSter, ~ in Pittsburg Coal, ~ in Beth
IeheIm Steel. 4 in Central of Jersey,
ana 81 loss in PENNSYLVANIA. Steers
gain of ~ was warranted by the buy
ing Of the following that viii not be left
in what they think may be the move
nent toward thu highest ever. The Sc
we're loss IN the surplus is the reason
for the theory that toTnOrrOW's opening
may be at lower figures than Saturdays
close.
The Street Is up a stump as TO the
manner in which the financing of the
London has been accomplished. The loan
item OF the banks exceeds the deposits,
for the drst time on this movement and
II Is rare phenomenon when money
is loaning on q Ger cent basis. Our
financial men claim that the interior
bankers are sending large quantities Of
cash 10 local banks and yet with the
free use OF money as confirmed BY the
clearlngss It does not seem possible that
1he cash receipts from the interior could
be very heavy.
Values Are High, But
Admittedly security values are high
but the question is. are they high, con-
sidering the existing conditions in bust
ness? Has everything been discounted2
Are stocks good purchase right now,
provided there was that ease in moDey
which has permitted the making OF
money through carrying securities for
dividends?
London is afraid OF an advance in the
Bank of England rate OF discount 20 6
Der cent. France is still making a fight
for gold, ana our national finances are
not entirely satisfactory. On the last
score no concern should be felt. But
money IS the nub OF the nut.
Chronic Conservatism.
Under the circumstances it is but
natural that conservative commission
houses should encourage the waiting at
titude, even though Il is a hand thing
for room traders, constantly watching
the ticker 10 keep out. Yet tbs burden
OF the refrain from some OF the ICa1lng
offices on the Street is to sit tight"
wait. keep ont" do nothing" sell
on rallies. and buy on weak spots.
This advice has come TO ne so chronic
that some brokers are simply sending
out the word repeat" In this advice
the Street but reflects a disposition 10
check reckless pecUlation-that any
advance In interest rates would be a
serious hinnrance 10 any further exc
pansion IN values. But this cOnserva-
tive feeling cannot be wholly clothed in
gloom so long as the industrial pros
perity is so full OF hope realized.
Henry Cbews closes his last letter
thusly:
"Our center Of gravity has been rails
ed too high, and lasting stability can
not be expected until equalization has
restored the 6QulllDTluTn ana prices gen
orally come down TO q less speculative
level"
While this sentiment does not find
unanimous ecnO By any means, II IS ad
nnitted that caution Is but wisdom, and
that II should be exercised now In the
stock rnarket-noW, II ever
SpecialtieS VIII continue 10 show larg-
Ter movements than the active market
leaders. The Street believes that the
situation in the copper field is such that
these stocks viii do better, the more
SO as IT IS understood that ]. p. Nor
gan has become Identified with the
properties. Equipment stocks have had
good gains and are likely 10 hold we'll
ia view OF the large expenditures for
their product.
In view of existing conditions il would
rot be surprising 70 find stocks at the
end Of the current week but slightly
different from the ciosings Of last week.
Precautionary signals are stu flying.
FINANCIAL.
ITEM MILLION DOLLARS