The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-01-26
MEXICO SUDDENLY
RISES ON HORIZON.
Strong Opinion That Admins
tration Is About to Announce
Change in Policy.
FINAacIERs GROW CAUTIOUS
Securities Prices Write Happy
Prologue for New Freedom"
Under Democracy.
.FINANcIERs GROW CAUTIOUS
ny Bl,oADAN WALL.

New York, January 25.-MeHico. in
bold letters, has suddenly appeared on
the financial horizon. Coming with the
elimination of series of favorable de-
velopments, hnancierS have grown eau
tious and are to-day. conservative re-
garding immediate prices.
The recent advance In prices ON the
stock Exchange ran practically for
thirty days, normal period View.
ing the rise from the purely technical
side, II may he noted that the gain
has averaged nearly SIX points winch
again, is u normal movement.
Developments during the past week.
all tended TO give swift upward
impulse to prices. PresTo:t Wilson'S
ably received, and was followed by the
striking success of the bond sale by
the State of New York, and this IN
foreign bank rates. The publication of
such favorable news items were utti-
lied for the marketing OF large blocks
month or two ago, when high grade
issues were being sacrificed at low
prices not eQualled since the 1907 oS
panic. Sudden and rapid accumulat ton
of funds at New York has stimulated
and encouraged speculation, perhaps
IN excess of tho reawakened public de-
for granted, in the change of senti
ment, that in the future, all suits Will
be compromised. and the so-callod
trusts or combna tons may sink back
heavy Increase In reserves at New
York largely reflects violent con-
cial industries. and further increase
in the showing Of idle cars tell all
TOO plainly, that railroad earnings are
FAR below normal.
Increase Is Discounted.
The advance in stand issues has
probably discounted an increase IN
freight rates, which may not be grant
ed TO the extent predicted. Union Pa
Pacific at ll6, or Southern Pacific at
99, arc not the bargains they wero
some five points lower. Amalgama,ed
Copper at 75, and Steel common around
66, suggest an Improvement in bust
ness that cannot normally be expected
TO occur for some thirty or sixty days.
Baltimore and Ohio is yet TO be dis
tributed. and New York Central has
not improved its weak financial posi-
tinn one jot. Heavy trading has not
lifted the price of Reading. The stock
sells at the quarterly dividend OF per
cent to-day and should look cheap.
To revert to the Mexican situation.
there Is strong opinion in financial
circles that tho administration having
disposed of the income tax, the tariff,
change In its Mexican policy.
The first effect of such action would
undoubtedly be diauuietine, and prob
ably bring about n reaction. This.
however. will no doubt he succeeded
10y optimism and a heavy speculation
on the bull side.
Railroad securities can hardly be con-
sidered cheap. until some definite con-
clusion is reached on the rate case.
There is tendency to turn to the
minor industrials and the low-prced
railroads. rs Offering n greater profit.
Amsterdam and the Continent have
shown disposition to purchase Fries,
Missouri. Kansas and Texas. Southern
Railway and Rock Island. London APP
parently refuses to enthusc and has
taken practically nothing in the re-
cent upward movement
AS January, so the year" Should
this hold good during 1914, securities
prices have written Il happy prologue
for the new freedom or prosperity
under Democracy. However, conserve
usm for the moment, Will be good
asset.