New-York tribune., 1909-04-12
FINANCIAL MARKETS
HIGH STOCK RECORDS.
RECORDS.
public Buying LndiscriminoteLy =
Money Conditions Suggest No
Immediate 1drance III Rates.

..r~z At the attractive purchasing levels estab-
lished in 1908 took advantage Of the nlsh - -
attained in last weeks market TO Iiquiuo
holdings At the same time operators VINO were
ofra;d IN come into the market when quotations
were selling from ten to forty points lower were
enthusiastic buyers taking securities WIN
reckless disregard for conditions governing liie
c,ec,,1atjva movements that have been en-
sineered by clever professional interests ioi -
prrpose of unloading their accounts up'" ~
a,,hI;c element that never exercises common
sense in its transactions. Prices redcileu !" ~ ~
high point on the current movement anu W.
o;Ioted at a range not far under lhe p
corded in the early part of 1907. ana lhouei
o. ,,-or q large amount Of distribution re-
nor+ad +he speculation was so well handleu 'ii0t
+ba selling was accomplished without nateI la
reaction from the best figures made III Aoiiu'E
wide and active dealings In view or lHe eaeel
ness shown by commission house traders 10 0O
cllmulate bull accounts. pool operaIiohs ",0s
hull limos doubtless will be continued JUST d9
long as there is any possibility OF carr @ ms
values higher but all advances the a!.ouiil
of stock in strong hands VIII decrease "i'li'
4;,,,o will come possibly sooner than SeheraliA
o,+ad u.hen the foolish public will have all
the stocks with no market 10 sell On except a'
big concessions in prices IheFe mas D''
rnucb manipulation in recent days ana So liiuo,
buving on borrowed money at quola'ioiiS 'i'l
more than measure the coming return OF n"i .i'i
times in the country's industries that II IS mn
,,ossihIo for educated Wall Street observers ~
see other than the usual results that IN iiie Pc
ALWAYS have followed periods or specuiatlle III
fation Stocks in most cases are 100 ms" ~
ar,eaI 70 investment buyers though IN some
cases a considerable amount OF lnNeStiiell,
,,o,ax- has been placed in first class falirodu
shares and issues that have lower actual Halu,'
on the assumption that eventually price leNei9
will make better showing than an! iha' ,i"S
he recorded in the current movement l''e
time view of the market encourages inns eN-
nectation but operations on this theory repre-
sent as q rule actual purchases Whlch VIII H''
be affected by a collapse in the present passing
speculation. New buyers on snlah Hldisiii9 a.
prevailing quotations, however, do not appear
=, ba in a particularly envable position.
The market has reached the point where the
strongest supports are being withdrawn, DIS
tribution of stocks by the people WI" pougHl at
cbeaper levels and the elimination OF the snort
interest are under way. Though money IS easy
and promises to remain so for some time 10
rome money market conditions OF themselves
will not sustain a bull speculation after the
market has passed into the hands OF 1rehzieu
traders of the get-rich-quck variety Inc IN
position of American securities VIII
,,o+ he iriured bv speculative losses that may
5evaIon in the future. Conditions aHectlng Ii'e
intrinsic worth of railroad and Industrial ISSUE
gradually are moving toward posi'i"t oi
greater strength. In the larger number OF III
stances reasonable dividends are being pald. ana
while there may be lighter distributions TOT d
+f,,,a on certain class of metal shares as d
consequence of the long period OF depreSsIoh III
the metal industry, the general outlook laNorS
the maintenance of current rates on most se-
orri+iee throughout the year with advances Nu
80 issues in 1910 the latter possibility being
based on indications that in the year named our
industrial activities will be running toward
plane of record breaking prosperity. Al 'le
the price Of the metal shares does not
eugpest dividend changes on a downward scale
hut unless there is a great expansion IN business
II, t7e near future at better prices independent
steel concerns may be compelled TO lower IheiI
rates while it is not at all unlikely the Ihl'eu
States Steel Corporation may ma II necessaIH
IN susnend for a brief period the dividend on
SIC common stock which is not being earned at
rresent Wall Street gossip figures out thaI
Steel common is being held at hlsh price III
order to let the insiders out at good proIiLs.
Ind that in the course of time the price VIII
react To the 3O's lower. with reaccumulatlon
t,. tho Dowerfll interests who always nave
made hinge speculative profits from the move
ments in this issue The Understanding pup
lie has been buying Steel common around %.
When the cut in steel prices was announced anu
this stock sold in the neighborhood OF Al TINS
class of operators would not touch IL Inc
people who make speculative prohts IN wan
street do not wait until the market begins 10
boil.
-rbe stock market situation as whole and
the factors that control the real value of secuTl-
rjes are being studied by careful followers or
market movements, and their conclusions DO
not encourage the purchase of stocks at pre-
yailng levels. They believe that more money
can be made by waiting for the lnevltaole Feac-
ton but their attitude should not be construed
as indicating bearishness their part over in
dustriaI and financial prospects in this country.
They recognize that there are many uncertain
ties ahead, and that it Will be considerable
time before tariff legislation is effected and
business readtusted to the changes in the sched-
1Iles; they realize that the country will need
large crops in the current year and that the
outlook for winter wheat is not so promising
as hoped for while they fml in the heavy spec
uation in stocks and commodities at advanced
prices reason for some uneasiness. But in
weighing all evidence and considerations they
find the scales heavily in favor of gradual mate
rial growth in the affairs that make for prog
ress and prosperity. Special significance Is at
tacbed TO the governments April report Of win
Ter wheat and rye. as the figures of condition
conrare with an unfavorable situation at the
beginning OF the winter and anord standard
for measuring the effect of the winter weather
upon these two cereals The estimated condi-
ton Of winter wheat expressed in percentages
was S53 on December /. while on April ! it
was 81 compared with a ten-year average of
S66 a loss in the winter months of 81 points.
against an average loss in the same time in the
last eight years of points. which indicates that
the cereal passed through the season Of greatest
danger with relatively little loss after starting
with lis condition comparatively poor. And
with good weather from now on the crop may be
larger than estimates would indicate, especially
as the acreage is practically equal 10 the larg-
est ever planted
Wheat prices advanced to new high levels fer
the year last week the May option selling with
lnIt two exceptions al the best figure reported
i'm the last twenty years. The advance appar-
emily is being overd0ne, but bull spectators
predict better quotations. and. as IN stocks, the
public is rushing in 20 buy above 81 "a bushel
" hen il would not take d bushel Is cents lower
Eb benefit