The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-26
Market Experts Are Divided in
Opinions of Course Of
Stock Prices.
SOME SEE HIGHER VALUES
Others Declare Speculation Is
Beyond Bounds Of Safety
for Investors.

nrces. as evidenced by their weekly
letters to clients. On one hand there
/ ia the group which believes there is
rom for still greater advances in mar
ke quotations. Opposed to them are
those who believe speculation has gone
beyond safe limits. Between the two
sroups stands the market observer, who
takes the attitude that present levels
are in most cases about what they
should be, considering earnings, divi-
bends and other factors entering into
the establishment of security values.
The following excerpts from some OF
The letters give an idea OF the difference
a. opinion which appears to exist as
"a lust what the stock market Is going
10 do.
Paine Weber & Co.: tho techni
cal position has become less favorable
during the last two weeks, owing to the
extent to which prices have advanced
in many instances and the indisortmi-
nate speculation which has caused a
rapid expansion OF loans. High prices
greatly increase the amount of money
that must be used in carrying stock,
40 that more liberal margins are being
generally required. This automatically
reduces the aggregate buying power In
the market Under these conditions IL
In reasonable TO expect moro or less of
a resting period while speculative hold
ings are absorbed by investors Eventu-
ally the upward trend should DO re-
sumed, with q secondary advance based
on better general business conditions
some special favors to stockholders and
perhaps various merger transactions af-
fecting the status of large corporations
This Is a very great and wonderful
country. Accumulated wealth of the
people is turning toward securities in
manner which cannot fail to have
marked effect on prices The investment
demand promises to show steady ex-
panslon, and we believe that growing
commitments during the coming year"
W. J. Wollman & Cove see no
reason to abandon a bullish view of the
future Peace is at hand and the world
will soon be back at work We shall
30 called upon for vast amounts % raw
materials and manufactured goods, New
phases OF our changing industrial and
commercial life will continue to receive
reflection through the stock market. The
conservatism with which both brokers
and clients have conducted themselves
n the last three months of rising values
offers fair assurance against a sudden
ton in the burden of taxation we, ex-
pect to see earnings increase and prices
rising In response. Reactions should az
lord new opportunities instead OF coca
sion for Encouragement"
Where Are s<ocks Coming Front
Old Lot RepSe,o-"It Is true that q
larger proportion than usual of the pur-
chases are for cash. 1t is true that
margins as a rule are substantial. Still
In the mind OF any conservative person
the question must inevitably arise,
Where are all the stocks coming from ?
The public Is buying steadily and on q
larger scale than has been seen in years.
Who Is supplying the goods? All this
would have made for reaction long ago
had It not been for the fact that the
public has both money and unlimited
confidence in a great revival in business
IN the not distant future. Stock prices
have risen extensively. 1t is true. but II
that turns out to be the case everything
that has happened marketwtse Is fully
justified. II the treaty of peace is
signed without delay and the expected
revival in exports Of manufactured
goods follows: If the current depression
In steel gives way to a condition of
great activity: II a plan Is devised for
the return to their owners of the rail-
roads In such shape as to make 1t pos
sible for them to earn their dividends
II all these things happen. we say. the
market has not risen too much, possibly
not enough"
sonnard, Mills Co.-'The stock
market reflects more and more every day
a greatly increased public interest and
wider diversity in the shares traded
in All important groups have made de-
oided advances and some others have so
strongly held their own that It was not
difficult to determine their status as be-
ing on the verge of a decided upturn-
Among these the leading Steel shares
and all OF the lesser properties In this
group have shown for several weeks a
hardening and rising tendency which has
finally shown itself in the decidad ad-
vance of the great leader to-day
Wrenn Bros & Co.-'There are some
signs of q change In the character of the
market. The spring rise began earlier
than usual and has continued longer
than usual, which in itself Is an EVIL
dence of strength. However. prices are
now at a high level. Industrial stocks
having gone up about 21 points since
the early part OF the year and rails 9
points. Besides this, yields are becom-
ing rather low. Representative indus
Yield to the typical investor of only
about So per cent after the payment
Of war taxes: and this Is rather low
considering the risk involved in these
shares. Prior to the war the normal
Yield Of good preferred industrials was
around sax per cent Railroads as a
whole are earning no dividends, and only
little over half of their interest
charges This fact together with the
uncertainty in the Government solution
OF the railroad problem, clearly indicates
that there is no sound basis for any sub
stantial rise from this level In railroad
snares The bull movement still has
/ behind It, however. the boom in export
trade which is of great and undimin-
ished proportions. Never did exports
play larger part IN sustaining COM
modify prices, employing plant capacity
and helping business. After Germany
Signs the peace treaty, which she IL
pound 10 do in view OF her helplessness.
u Is not at all unlikely that there may
Oe even greater boom In our export
gade for a few weeks. This ought to
se reflected In the stock market in the
shape Of either further rallies or else
SUI greater public absorption of stocks.
upon the whole it appears that a change
IRON a bull market to a distributing
market Is liable TO occur at any time.
stocks are doubtless still a purchase on
FACTIONS, but as the market gets closer
mo closer TO the top one must become
nTeasingly careful TO take profits while
'nsy are in sight"
International Exchange Factor.