The Washington times., 1910-10-24
Business and Financial Outlook
BY FRANK A. MUNSEY
Rctyiqted from lIaqsey's IIagaziue for NoOem5c,

THE financial situation looks very
much better to me than it did
a few months ago-better, in
fact, than at any time within the
last six months. The powder mines
are out of the market The atmos-
phere of Wall Street is clarifying.
The conditions that breed panics have
been eliminated.
Panics come from a disturbed
money-market. from wild speculation,
from over-extended accounts, from
over-extended business, from sky
high prices for securities, and
from over-production by factories
and undue expansion of credit, There
are none of these in the present stu
alton. Securities are below their
value. Bankers have their affairs
well in hand. There are few, If any,
over-extended speculative accounts
and business is running along on low
pressure. Money is cheap, and
cheap price for money enhances the
value of securities, while high-priced
money depreciates the value Of Sc
curities.
Another evidence of bettered con-
ditions is found in the good demand
for bonds. This deIaand is probably
better than it has been at any time
within a year, and a buoyant bond
market usually presages a more buoy
ant stock market.
There are. therefore, no squall sig
nails or storm signals or hurricane
signals anywhere TO be seen The
general underlying condition Of af-
fairs is sound. Our crops have been
satisfactory, anC our people have been
and or. for the most part well-em-
ployed and industrious, We are a
bit extravagant, but then we always
have been so, and, notwithstanding
our extravaganza, we have made
progress-progress of a kind that
has staggered the rest of the world
Securities have been selling below
their actual value for months. but
the danger Of something happening,
of a panic, OF a slump that would
break things wide open" made the
purchase of stocks undesirable. The
prices are, in the main, about the
same now as they have been for the
last three or four months, save on
dips" that is, breaks caused by the
liquidation of some over-eXtended ac-
count OF by an uItra-panicky feeling
on the part Of the Wall Street crowd
But with these things pretty we'll
ironed out. and an accurate knowl-
edge of the measurement Of our crops,
and the certainty that We shall have
money enough to move them, togeth-
er with the obvious certainty that
sensational declines from this point
are highly improbable, the situation
presents an entirely different front.
The fear Of a violent break in
prices. which has been quite possible
at any time during the last six
months. has kept investors, and par
ticularIy small investors, from pick
ing up stocks and bonds at these low
prices-and they are low, considering
their dividend WELD and the substan-
tial properties that they represent. 1
am speaking only of the best securi-
ties: the best are none too good for
you; the worst, or even the poorer
ones, are not good enough for you.
While think stocks are a purchase
at present prices, if purchased con-
servatively. l am not of the opinion
that we have Immediately ahead Of
us any runaway market-that is to
say, any great permanent boom. 1t
looks like an investment market at
the present time, not a speculative
market.
The widely f1uctuating market is a
/ spectators market, whereas a quiet
market may we'll be an investors
market The investor who pays for
! his securities should be content with