The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-17
INVESTMENT VIEWS
AND The OUTLOOK
Tone Of Stock Market Letters
Is Faith in Continuing Of
Upward Movement.
SOME PREDICT DROP SOON
While Bulls Herald Further
Rise Bears Say Advance Is
But Spring Drive.

While there are hero ana ehere q few
Stock Exchange houses which counsel
tho sale Of securities at present levels
the consensus of opinion. according to
weekly market letters. seems to be in
clned toward continuation OF the
present upward movement There are
those who are decidedly bullish. Others
taie q moro temperate stand. suggest
ing caution in making commitments but
predicting that the rise In not at an end.
A few Of the bearish type believe that
the recent movement OF the market has
been merely a spring advance. which
win be but temporary,
Various phases OF the market situa-
ton are analysed in the letters. Some
Of the houses take UP the point of the
markets technical position, while others
lay stress on the amount OF investment
buying which may or may not have en-
tered into the rise. Still others comment
OH Individual developments such rs the
railroad situation. the price OF steel
products, &C. Following are excerpts
from some Of the letters sent out by
brokerage houses to their customers on
Saturday:
Long Pull Buying Premature.
wrenn Bros. Co.-The market
proved to be a purchase upon the reac-
ton following the failure OF the railroad
bill. Those who anticipate higher prices
are satisfied and pleased with the evil
dent intention OF the Government to
operate the railroads by means OF one
H.. 49, To- It1nr .N.
Appropriation by Congress and in any
event the general market has been
stronger and mote active than before.
The factors behind the rise are now
painted in very impressive colors. but II
Is doubtful whether they are really much
different from q month ago. Certainly
the amount of investment buying on the
part OF the outside public Is small, and
Is far less important as n bullish figure
than Is the persistent short selling. The
basis of the rise, then. still seems to be
chiefly technical, although It is to be con-
.sidered that the growing disposition to
regard the peace reimbursement as being
already nearly accomplished is itself q
rather powerful bullish influence. This
view of the readjustment Is likely "a
prove completely erroneous for aside
from copper mining there Is probably nc
great industry In this country which has
actually readjusted itself to a peace
basis. There has been n substantial
aggregate Of buying OF goods and COM
modities for the spring trade. but this
buying ia generally confined to the i'm.
mediate necessities Of consumers. The
majority Of products are still 30 high in
price that those consumers who are
making only normal peace profits cannot
afford largo quantities OF them. Struc-
~ Rfeei for rrpia still n N rrice
which practically prohibits its extensive
use In building. The latest averages OF
wages. too, show an advance. whereas
before the peace readjustment Is COM
plete they must decline. IL the read
5ustment has much further TO go, II fol
lows that we now enjoy merely TEN.
porary spring rise in the stock market
and that buying for the long pull ID
premature.
may nc feaco Market Hise'
]. s. Bache & Coin just about
out the recession in stocks of around
nine points which look place Slowly
ster ene arnis.lce mao peeh declared
Aoout inc miooIe OF octoDer. IN some
way psycHo, prlces anticipated peace
by an lnsistent rise Al mat Time
the cerman war. pack had oeeh broken
tne inoiViouai ana general opinion wat
almost universally tnat the war wouio
.sst INTO me spring. SeVertheiess' ris-
ing prices inoicated an carry ternina'
uoh, ana .his came with the armisuce
on november IL Ihen "neh the mrs.
Juoilation was over the consideration
that was an armlstice ana not an
unconditionai surrender. mat VAST prop.
iiems OF adjustment ana Reconstruction
enormous war debts unequalled in his.
Ur!Dah ms .enaeu " prouuce pes.
sn.IsS anu hesit opn,'oI'' anu tis
n, ey - y. Nss
- .e nv" n W 'o'u
~" 40 Nau.e We arr nioNihs nv.
Ino Loi'e Vi reAi peaoe' ~ may oe INA
arg no" navhs the reai peac'
lna,ket r,se when nau always peei
"i'.iepe.eu. Nea,!y al ia.lois i"uloa'e
CONTINUATION OF IT, LOT 'inie al least
Ho"A Aor iNe"c'"" SUM
Goodbody & Co.-Beyond question
much that will happen to industry and tc
Wall Street this year depends upor
what viii happen to the price level. II
the price level should touch bottom
soon and prices should begin to advance
industry would revive quickly. II the
price level should continue TO decline
for six months buying would proceed
but slowly and industry would continue
10 lag. While the prices OF many In.
dividual stocks may reach new high
points In the next few daya wa douh,