The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-08-18
BIC MARKET EAST
HAS BEEN TURNED
Coming Swing to Securities
VIII Be Upward, Says
an Authority.

Fees the rece1; upward movement IN
the stock MARKET simply represent a rail-
ly IN bear market or are stock prices
asEin on the food tide? That ih the
al-irnportant question. For nine months
values have been dvlndling. The persis.
;ent fall IN prices with subsequent eX-
trsnc dullness. has played a violent tat
too on the heart strings OF security hold
srs Sentiment - very depressed. Mar
ket optimists are as scare as the proven
2ial hens teeth. say Thompson. Towle q
Co
There are substantial grounds FOR tho
prediction. however. that the market has
definitely turned for the better Conf
Dulness may. and g. likely IN continue.
II IL better that II should: but tho main
point is that the trend has changed. The
next big broad sWins in security values
II is axiomstic IN Wall stree, that tho
public ,never buy stocks when they are
scraping on tho bottom. An average
traders courage cUmuiafes with strength
In the market. As prices advance his In
'erest - sharpeued. then his senses are
awakened 10 possibilities or tho situation,
After big upswing he buys, and at the
tor ~ the swing an average trader - 50
filled with enthusiasm thar his Judgment
iS completely warped and long commit
ments are made haphaEardly No better
the Boston copper share market Con-
trarily. a long and continued decline IN
prices 30 sops an average trader or In
vestor of his couuag" that al the bottom
take advantage or the opportunities pre-
sented.
That is the situation At tho present
time. The mar rkst has discounted all of
the unfsvorabc features iu the present
situation and outlook. Conditions are Inn
proving. and the market has begun TO
discount the Improvement. actual and !
prospective. and unless there should be
new and serious untayorable develop
meuis. now unforeseen. the advance will
slowly progress.
Probably because the beginning OF the !
decliu" in the market was almost stimuli |
taueuus with the announcement Of Prcsi- |
dent Wilson's election has been the pre- |
dominating hear factor; but n President |
Wilson had been possessed Of the wisdom |
Of a Solomon ho could not permanently /
have avertcd the stock markets fail, for \
~ has been caused py an economic con-
d'tion In no wise brought about by tho /
Democratic plriy's administration OF az
fsirs.
First and foremost among the unfavor-
able factors has been the strained none |
tsry situation the world over. There has
been gross over expansion OF credit. In
iensined by the thutening OF European
purse strings. following the outbreak OF
Tho Balkan war; and as our present piu-
fully poor currency system offers no
they have been depleted by European bor-
rowiugs when we needed 20 husband
them most.
But The monetary situation Is being
reUedied both at home and abroad. Our
bankers arc now forcing commercial en- |
'erpriscs 10 go more slowly. loans arc be-
ng reduced and reserves strengthened.
The big banks abroad are also making
strenuous and successful attempts 10
strengthen tho monetary situation on the
other side, The continuance OF troubles
n The Balka M makes their efforts much
more difficult. as II makes the European
Investors particularly those In France
md Germany afraid 20 again loosen their
purse strings
There is tremendous amount Of undi-
rested securities both iu our market and
- the markets OF Europe. Furthermore,
He financial requirements OF our big
business enterprises, particularly the rail-
'oads. are enormous. IL IL one OF the
most disturbing les tures OF tho situation.
'ut the ability of this country 10 absorb
securities once .hat confidence has been .
.ueuCtFcucd. should not be under-csti-
mated and. with the improvc In fun- |
factors. this situation will adj
uSt Itself