New-York tribune., 1909-04-19
FINANCIAL MARKETS
STOCKS At HIGH LEPELS.
Speculative FeUer Gro1cing IN Stoc6S
and Commodities--Easy Money
Encourages Initiation.

vel q -'ic44Ne-''
average for the leading active railway 'ssu1o
,rss a. 100 a6 and that for the chief indusuAalS
at SSH on the following day there M. "
decline to 122.17 for the railways ana o'.oo ro-
the lrdustrials, with advance on i" 80 -
to 122 Sc for the railways and decline u o.
Co. tba ira,strials on Thursday the same ran
road shares worked down to 1224o anu ti0 ~
dustrials to S7.16, followed by a deciiie
1921 and 1855 in Fridays market anu q"
vance Saturday to 122.17 and S6-sl for 'le , iaI
roa DIS and industrials, respectively Inc sei &c
movement reflected a large amount ol .-t
but no great volume of distribution on tie pa
of the prominent bull interests VINO MD -
that conditions were not ripe Tor sehei"l ~ III
dation and that under the lhHuehte
money further new high levels would De te
o-5ad Money market conditions are making
for imitation in stocks. Prices in the sIea'e
number of instances have more imam ul9N
anv Improvement that may take place III tilt
co,1ntrv's industries in the course OF the heA'
six months but with call FUNDS III dctiNe sup
Ct lou, quotations and time money at an dp-
sIrdIv cheap range considerations alleC'iiie
relation of market prices to actu3l Ndlue' ieO
little attention from the speculative cohliiuii.S
There are possibilities involving oailsei
marginal BUYERS at current quotations. as snap
.o+tlocl.e re Droba BILE as a consequence OF Top
heavy bull accounts The danger OF soiiie ~, ~
favorable development does not apPeai -
discussion, but if anything OF reall5 "u
ra+,,re should turn UP with speculation III i10
-. condition heavy losses would accrue 10
tbe enthusiastic operators who are laoorlhs uii-
der the impression that nothing can ocCul -
unset the upward movement OF Stoch I En- -
cIo+a+ions stocks may not be considered dedi
when the yield is greater thah Ihe Pi
,,one,. hut essv money tends TO promote lHld-
zion from which eventual collapse must ue
velop The stock market has advanced 'oo 60
so has the wheat market Specula'ioii III e
latter is creating economic cohol'loite - b.
tain elements calculated to produce troupie' Dul
81 should be borne in mind that this specuia'ioh
is based in part on natural developments au
,-antaqa of which has been taken by poWerfui
interests to carry prices for the various options
"a levels that seldom have been exceeded
The speculative fever is growing IN Ihe s'oSh
and commodities markets. but intending buyers
ought to remember that no one ever mas seculeu
large profits by making purchases al aoNailCeu advanced
oro+ations People who buy for permanent
income Will find many securities ina. @ sl.'t So htot
turn a fair yield but the general lsI VI H1ei
ora de stocks and bonds is too high 10 encourage
much buying for keeps The 1act that me
ma in argument of the bulls in the stock marhel
is based upon the expectation of an active re-
,,ival of industrial prosperity before the end OF
tbe ,-aar naturally has created more confident
feeling in business quarters, and the appreCla-
ton in prices therefore has Significant Nalue
to the business community which ho"eNe''
should not be taken as license to trade IN
stocks on shoestrng margins SpeCuldtIoiI
serves a good purpose up to certain point ana
in the minds of many observers that point mas
been reached. though any attempt to discourage
commission house buying on borrowed money at
the prevailing levels will be froWned upon py
the community that makes its living from the
SO 40 on each one hundred share lot bought or
sold The public only buys to sell again. ana
at the moment commission houses that nave no
interest in their customers welfare are advising
the public to buy. as buying in quantity means
selling in equal volume at a subsequent time
no matter which way the market goes, with
S25 commission TO the broker for the completed
operation Of hundred shares OId line
houses that do a conservative business sare not
suggesting purchases, except on scale down.
and for the long pull transactions Of this char
acter doubtless will prove profitable. There Is
nothing in sight to provoke investment hqulna-
tion but there are, nevertheless. breakers
ahead for persons who become involved in spec
uIative bull commitments on the theory that the
advance will run indefinitely. The biggest
professional spectators in the Street lndividu-
ally and in pools have been working on the long
side of the market for the purpose of supplying
the outsiders with the stocks for which they are
clamoring at high figures These buyers could
not be induced to take stocks when they were
selling at bargain prices, and powerful Street
interests, therefore, have pushed quotations to
what the public considers attractive range.
And many public operators sold at a loss in the
reaction that developed in the latter half of last
week
Wheat is high. stocks are high, money is
cheap, paper currency is expanding in volume
and gold tends to leave the country Money is
cheap but no one outside of the speculative
community appears to want it, except our best
money. which the great Of redundant paper
circulation and abnormally light exports OF mer-
chandise forcing out Of the country The
production Of copper is breaking records. the
price of the metal is low and few buyers are in
the market Production is far ahead OF con-
sumption, and yet the trade is viewing the situ-
alton with indication OF uneasiness and pre-
dieting a large buying movement at higher
that are not above the cost of production with
active buying reported in only a few lines. The
factors cited make q mixed situation that sell
dom has been experienced in this country, but
with all the Inconsistencies and abnormal feat
ures the general position of the country's indus
trial affairs rests upon I sound foundation. with
absolute confidence IN business and financial cir
cles of coming readjustment of all conditions
to d basis that will bring about era of great
industrial activity, especially if the seasons har-
vests are abundant. Early reports on winter
wheat have not been encouraging, but this crop
has wonderful capacity for recovery, and with
favorable weather in the balance Of the time
necessary for Its maturity the total yield will
be far better than the April crop report indi-
Gated Foreign exchange rates are slightly easier
4 consequence Of heavy buying of American
securities for European account, and at the
ment the only hope of lower quotations for
sterling lies in a movement of stocks and
bonds abroad The position Of the local money
market does not encourage the drawing of
finance bills. and the help generally extended TO
the sterling market at this time of the year
from this source is not in sight at present
There is great scarcity of commercial bills
while the demand for remittance is active, rea-
son for the poor supply Of exchange and the
inquiry for settlement being found in the posi-
tion of our foreign commerce and in easy money
market rates which do not attract the lending
Of foreign balances here.
In the last month the outward movement of
merchandise from the United States was lighter
than in any cOrreSDoDdinP time with tho