The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-03-24
INVESTMENT VIEWS
AND THE OUTLOOK
Letters on Market Situation.
Although Optimistic, Are
More Conservative.
TIMES NOT YET NORMAL
Opinions Vary From a Tone
of Confidence Of Higher
Prices to Caution.

Letters sent out Mt the end OF Inst
weeks stock market business by broker
age houses to clients, while prhaps a lit
tie more conservative than those of a
Week ago stu show that the general
trend or opinion among market men IL
one OF optimism Hero and there will bc
round those who advise the sale OF seou-
rites on any bulge, but the general
opinion as evidenced by the letters ap-
pears to be that the market has some
distance to go In the process Of discount
ing better conditions to come with the
signing of the peace treaty. The follow
ing excerpts taken from the letters give
some idea OF the general attitude in Wall
6tret:
Paine, Webber & Cove have every
belief In a speedy readjustment of gem
eral business. the foundations for which
nre now being laid and maintain that
with unparalleled financial resources
large crops marketed at high prices, un-
Impaired and increased Industrial ca
pacity. foreign trade OF record proper
Tons and a gradual ending OF the spirit
OF unrest throughout the world. the
United States may look forward to a pc
Rod OF dominating strength that will
make American securities still more de-
sirable for investors. This must be moro
fully reflected in the market. Therefore
while we are at present disposed to ex-
pect n general reaction In prices for the
technical reasons outlined, on such re-
ocssions we'll selected stocks will aga in
appear cheap under the favorable cir
cumstances involved and purchases
should in our Judgment be made with
fru confidence In profits TO be obtained
IN even broader and moro buoyant mar
kets than have been seen thus far dur
Ing 1912"
sure of Higher Prices.
:. W. Wagner & Co--"when the word
Is dashed from Versailles that the peace
treaty has been signed and sealed there
will be a veritabls stampede for the re-
establishment OF trade relations between
eli countries. A brief survey of the for
s.gn trade outlook at this time is highly
interesting. AS n result Of the world
war the United States has tremendously
expanded Its productive capacity tut
fortunately for US the warning nations
and other countries contiguous 70 the
same have been on short rations for
necessary peace time requirements since
the fateful day in 1914. There is a great
gap TO be filed. 1t requires no stress
of mental effort 20 perceive what this
great world trade means for our indus
tries, our railroads and our agricultural
dicates that our neutrality-suspicious.
the shares OF leading corporations-are
destined to sell at materially higher lev
els''
TIE odd Lot Rc,,ietc--"The cut in
steel prices and the removal of artificial
support from the exchange market are
two steps of tremendous Importance in
the direction Of bringing things back to
n normal basis. They must. therefore.
~ eft fixrn if,fn ff
first magnitude. The cut In steel prices
puts us in a legitimate position to begin
discounting a turn for the better. Lower
steel prices. OF course, mean reduction
in the margin of profit. but they also
mean n great increase In the volume OF
business on which that profit vii! BIO
made. With prices where they are now.
It Is entirely reasonable TO expect n con-
siderable increase in the volume OF steel
buying. Whether the reductions so far
announced will be enough fully 10 stimu-
late demand may remain 70 be seen, but
certainly II Is a step in the right dlrec-
tion and Is bound to develop u very con-
siderable amount of business which
otherwise would simply not have been
placed"
Clark. Childs Co.--"The general
situation presents no great change in
the last week. We have n very natural
important equities accrued during the
war for many companies and moved by
steel and other price adjustments. The
short account appears extended to limit
OF safety. The chief menace Is the
foreign exchange situation which the
Peace Conference must arrange. Our
letters have not minced words in calling
attention to this matter. This weeks
experience in francs Is the first concrete
experience. and now is the removal OF
sterling restrictions"
J. s. Bache d Co: 1T is conservative
70 conclude that most OF the factors
making for a decline in business are
berind us and that those favorable TO
business are ahead of rs. Peace Is a
certainty within reasonably short
tine, and once established. there Is
sure to follow more normal trade con-
ditions throughout the world. Tho
drastic cut in steel prices should start
the tide of buying. restrained heretofore
by hope OF lower prices 1t Is to be
noted that stock markets, In recording
the future of business far ahead, estab-
lish these records more or less quickly
rnd then rest. In other words, the high
prices may not continue while the bust
ness world Is making good or beyond
the time when public participation has
reached lite maximum. In the present
market, with loans IN wall street low, IL
does not appear that the public has yet
Joined apprec!ably in the speculation"
Desperate Need OF Raw Materials.
R.cha rdson, Hill & Co: Following
protracted period of million share days
with advancing prices moderate re-
action was to he accepted quite as n
matter OF course. Many sold out bulls
and still more potential buyers III Q now
waiting to enter the market at the first
favorable opportunity. Brokers' debit
bals noes as whole are probably no
larger than month ago. The founda-
ton underlying the recent rise in So
curity prices is the desperate need OF a
large portion Of the world for American
raw ard manufactured products 1t Is
granted that the obstacles In the way of
supplying this demand are varied and
will from time To timo interrupt our
progress, but the stock markets main
trend should continue to anticipate the
objt ctive OF American business. which is
the distribution OF our goods throughout
q world bare OF supplies"
Wrenn Bros. e. Co: Realizing sales
have dominated the market during the
past week On Tuesday there was
considerable reaction, but even for sew
Ia 90 tha advance had been