Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-02-20
Market Tendencies They Are
Being Put Away in
Strong Boxes.
HUGE EARNINGS INDICATE
BIG DIVIDENDS COMING
Banks Still Plentifully Supplied
With Money, But Heavier De-
mand Is Predicted.

NEW YORK, February ia new
tendency has developed in the stock
market-or. more correctly. an IN
creased emphasis upon a tendency that
has been gradually developing for
three months or more; this Is the
switching over of the investing puphc
from the war stocks to the stocks OF
the leading mining companies, most OF
which are at present paying their
stockholders dividends far in excess
Of their most sanguine expectations.
The same is true, to q limited extent,
of a few of the so-called independent
oil stocks, which in recent weeks have
announced enormous net earnings,
big percentage Of which will be paid
over as dividends to the purchasers OF
the stock.
We have only to refer to the official
documents of the Department OF Com
merce Of the United States for reliable
information relative to the extraor-
dinarily large earnings OF American
metal mines in recent years. Banks.
railroads and Industrial concerns ap-
pear insignificant by comparison.
Boom In FAKE" STOCKS.
One natural result has. of course, been
the introduction Of numerous fake
mining propositions, and the actual
selling to unwary Investors" Of beau
tifully engraved certificates Of mining
stock not worth price of the gilt Dor
ders which so glaringly adorn them
But those who have taken the trouble
he nj m.
dition of the properties in which they
have sought investment have con-
WINGED themselves of the extraordinary
possibilities which they offer as gen
uine and permanent income producers.
The great demand for copper and zinc
since the outbreak Of the European
war has had the effect of boosting the
price of these metals to unprecedented
levels, not only adding greatly to the
net earnings of many mines winch
making it possible for many others
which had discontinued operations to
resume and to market their product at
a fair profit. 1t Is not only the foreign
brought about the conditions described
above, for with the great revival in
the domestic trade of the United States
the call for copper land brass, Whlcn
is two-thirds copper), zinc. lead and
tin has been proportionately greater
than in previous years.
No Halt to Uplift.
The result has been widening de-
mand for seasoned dividend-paying
mining stocks, prices for which have
been continually soaring. with appar-
emily no recession for profit-taking on
a large scale. This is sufficient proof
that the stocks are being bought out
right by American investors and put
in strong boxes as income-producers.
1t is estimated that in recent weeks
fully one-third of all the stocks sold
on the New York exchange have been
the mining shares. and many instances
are cited of mining stocks which few
years ago were quoted in c&ots are
now quoted in dollars and multiples OF
ten. This is due, not to manipulation,
but in the profitable revival of mining
properties which had been considered
dead and worthless and which are now
paying fancy rewards to those who
have reclaimed them.
To enumerate some of these mining
properties would be but to repeat names
which have grown familiar through
repetition in the financial columns of
Utah Copper. Anaconda, Chino. Miami.
Shattuck-Arizona, kennecott. Braden.
ST. Joseph Lead. etc These companies
have distributed or are about to dis
tribute portions of the vast profits &C
cumulated during 1915, and much great
err profits are expected in 1916. One
authority estimates the profits on
American copper production in 1915
alone at close on to S200.0O0.000 with
prices for the metal ranging from Is to
30 cents a pound. If. as is now expect
ed the price of copper metal ranges
from "a to % and 80 cents a pound, the
net profits in 1916 will be easily double
those of 1915.
Optimistic of Future.
Wall street, therefore. very optimis-
tically predicts that in two or three
years the most successful producers
will pay out such enormous dividends
that in some cases the net income
of few years will be equivalent to the
present purchase price of the stock.
This is like having your pie and eating
it. too; but the present outlook, in
many respects. amply justifies this
of the dividend mining stocks Will. In
the estimation of astute leaders of
finance. prove most satisfying to in
vestors at this time.
Meanwhile. the general position of
the stock market. as compared with
year ago. is a most favorable one. and
contrary to an Impression winch seems
to be quite general. but which is never
theless erroneous. the improved posi-
ton is not based upon the unstable
attitudes of the price of war stocks:
The average price of the twenty rail
roads and twelve industrialS used for
statistical purposes for comparative
periods is as follows:
This Last Last
week. week. year.
Av 20 railroads. 1921 1925 9O.92
Ay IL industrials. 1880 123Ol 1871
Indicates Steady Market.
This shows an increase of liz
noints or nearly 10 per cent. in the