The Caldwell tribune. [volume] (Caldwell, Idaho Territory [Idaho]) 1883-1928, 1915-11-26
New York City, Nov. 20, 1915.

Transactions on the Stock Ex-
change maintain their million-shares-
a-day pace, and while liquidation has
been very heavy, there has been no
marked depreciation in any of the
market leaders. On the other hand,
the price level has maintained firm
undertone, not only in the rails, but
also in the war stocks. The course
of the market in recent weeks gives
every evidence of heavy and concert
ed buying by large and strong imam
cial interests. Enormous earnings of
some of the leading industrial con-
Germs, the stock of which is repre-
scented on the Exchange, has made the
purchase of these shares very desir-
able from an investment. as well as
speculative standpoint. For example,
A stock like the Western Union, which
paws a regular dividend of per cent,
Yields an income basis of 6 per cent
at current prices. Those who pur-
chased the stock two months ago at
Is. however, may now turn it over at
81 or more, an additional profit of ii
points. 1t is arguments of this sort
that make these dividend industrials
irresistible to those who have surplus
funds awaiting profitable employment.
Tt is conceded that the stock market
is now in a very strong technical posi-
ton as a result of ten days or more
of liquidation through which it has
passed, and violent reactions are now
hardly possible through flooding the
market with over-bought issues. And
moreover. traders have been taught by
two recent reactions in the highly
speculative war order stocks that 1t IS
not safe to buy into companies whose
shares have had tremendous advances
based entirely upon unofficial reports
of huge profits to be made out OF
munitions. Some of these issues may
be worth their present prices, and
more. but until the mystery that has
surrounded their changed positions
has been cleared by earnings state
ments buyers are likely to favor the
standard copper and steel stocks and
those Of the "war order" companies
which have issued official reports.
Moreover, New York financial lend
ers are predicting still higher values
for standard securities. Though it Is
to be assumed that reactions are al
most certain in all securities. the stan
dard railroad and industrial stocks on
the basis of actual earnings and mini
mum dividends, are becoming safer
and more satisfactory form OF invest
ment for those who apply the doctrine
of safety first" in choosing their
securities.
Comparison of market quotations
further substantiates the position oil
those who look for the rising level oil
stock prices. 1t is pointed out for eX.
ample that the closing prices of x
active railroad stocks on Saturday Of
last week, at an average of l06$, was
nearly 20 points above those of the
low price of December last. The
average price on December "a, 1914
was only 87H. The twelve 'statiscal'
industrial stocks moved up from M
to l2138, an increase of 81 points, II
the period from July of last year tc
the present time. From July OF thi:
year to the closing last Saturday. &C
cording to the accurate records OF thu
Journal of Commerce, the railroad
shares have advanced Is points from
885S to 1868. and the industrials 3.
points from 87H to 1915. The in
creases in these stocks is of cours,
based upon the probability of thu
maintenance of dividends at curren
rates, and in some instances of tn
payment of cumulative dividends tina
have long been deferred.
IT, as most conservative bushes
men believe, the present outlook TO
prosperity in the United States is no
because of the war in Europe, but II
spite of it, and that the furnishing o
- war goods is on a much smaller basl
than is popularity believed, there.
indeed ample reason for the adde
public interest in our great industrla
establishments. Take, for example
the, steel trade. The latest MONTH
report of the United Steel Corpora
ton showed the remarkable increas
of 847 900 tons in the untitled orders
an increase all the more phenomena
when we consider that in prevlou
months the output of the steel mill
has been greater than ever betor'
Within less than years time tn
worst depression in the steel trade /
a generation has yielded place to tn
biggest demand which this industr
has ever been called upon to flll.
is perhaps the most remarkable eVolt
ton in the history of the steel trad
and it is no wonder that many eve
of those who were most depressed b
the low ebb to which business in tn
country had fallen should be harbo
ing now expectations of an eXpansio
in trade within the United States sue
as the country has never before see
Money and Investments.
The announcement made Simultai
eously in London and New York n
week to the effect that new SSl
100000 credit had been arraigned
this country for a group OF importa
London banking institutions, is an
Their step in the advancing intern
tional financial prestige of the Unit,
States. This will probably be q
forerunner of other and similar tran