The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-07
VIEWS
AND THE OUTLOOK
Theme of Optimism Still Runs
Through Market Letters
Of Brokers.
TONE is MORE BULLISH
Although Conservative Advice
Is Given There Is No Note
Of Pessimism.
TONE IS MORE BULLIsH

Of Pessimism.
T. ,..
Optimism continues TO be the lead |
ing note of this weeks market letters
SAINT out by stock exchange firms to
their clients. Predominancs Of bullish
letters 10 in fact moro noticeable than
Il was a week ago. or. for that matter,
two weeks ago. There are those. of
course, who counsel conservatism. but in
the excerpts from letters appended there
In no word OF downright pessimism. All
agree that the steel price muddle IN
Washington has had an important ef-
fect upon the market for securities. but
they appear to be equally sure that It's
final settlement win be favorable de-
velopnlent marketwise. Following are
quotations from some OF these letters:
Paine, Weber q Co.-'There are sew
eral leading industries, including steel
and copper, which should improve with
a return to normal trade movements and
tho stocks representing these industries
are still selling at very moderate levels.
As one line Of business after another
hnds It's bearings. bullish stimulus for
tho stock market Is provided and this
fact In given full recognition by the
| leading interests. Rsadjustments fol-
lowing; tho war must inevitably include
tho public utilities and tho railroads.
| While readjustmeuts In these directions
are allow to materialize, they Will event.
ualfy fsavo strong effect on stocks OF tho
companies concerned. Following the
greatest war In history, the rehabilita-
ton Of affairs Is proceeding much moro
satisfactorily than might have been
expected and rapid improvement should
ensue during coming month"; We con-
tinue to favor purchases of stocks. espe-
cially on any moderate trading recess
sions in the general list"
z. w. Wagner & Co.-''wall Street
| IL taking a great many things Tor
granted these days and refuses to DE
upset by disturbing rumors- There Is
unanimity of opinion that great business
| activity Is Just around the corner IL IL
| OF course known by everybody that the
Government wishes TO cooperate with
large financial and industrial interests
| In every reasonable way to bring about
[ a normal state OF business and this IN
the last analysis inspires much opu-
uism throughout the country. Business
| enterprises and individuals as we'll that
have been hampered and jeopardized by
the war and in turn by the transition
of q war basis to a peace basis are con-
l
| a comfortable feeling that nearly all or
our leading corpora tons now have larger
current assets than at any time in their
history"
why Markets Are Uncertain.
Clark. Childs & Co-"Markets con-
ltinue uncertain while official prices OF
credit and. commodities are being deter
| mined. The number of conservatives IN
banking circles increases. This Is a period
when a conservative will attempt specu-
iative Judgment only on longer ana
broader lines. and chief reason Tor MOD
Grafton in market activity Is money as
these letters have recently sought TO
innpress. Gold cover for circulation Is
Decreasing as its amount il increased
nv activities of Government in financing
war and industry that has had TO apply
for public aid. When is Government eN-
penditure to be measurably reduced:
We can not safely go on much longer
as now"
HAYDEN, Stone s. Co.-'"rhe market
as usual is looking forward TO the next
step, which undoubtedly will be that OF
reconstruction. Soon the problem to DO
faced will not be lack of demand for
goods. but means to finance their pur-
chase Two Developments OF the week
The first is the apparent revelation that
In spite of tremendous wages our pro-
ducers OF steel are able to deliver their
product at less cost than those OF Eng
land Apparently the rise in labor has
been even greater. proportionately'
abroad than here. This Is of the first
Importance in the matter of competing
for the worlds market. Secondly has
been the fall In English and French
exchange. II cannot be too often re-
iteratcd that next to subscribing TO our
own Victory Loan Il is our duty to in
culcate the habit of investing in foreign
securities. II is good business and good
ethics. 1t is now five months since the
armistice and though there has been
J some recession in prices, for the most
al part they remain stubbornly high. Evil
IDENTIFY the extremists of neither school
are correct. There should certainly be
some recession from war levels more
than there has been In most articles,
but It is also equally true that they
will not go back as a whole TO prewar
levels"
Goodbody & to.-"The world turmoil
cannot but be reflected in Wall Street. II
Is remarkable, however. that in spite OF
the big advance OF the last six weeks
and of the many unfavorable factors
the stock market holds wonderfully
strong 1t has had a most severe test.
with the bad news from Europe and
the scrappng OF the steel price fixing
agreement the market was apparently
in n bad position to resist an attack by
the bears. 1t stood UP so well against the
desperate attacks upon II that calls
are said to be getting relatively scarce
in the New street put and call market
Until few days ago calls were more
plentiful than puts. Now this order is
reversed Evidently the makers of puts
and calls have reason to think that the
bull market will be resumed soon"
May Reopen Price Question.
Odd Lot Recieto-"It looks very much
as though the whole question OF prices
not only for steel but for other commod.
tiles was about to be reopened and as
as though the only solution of the matter
would be some sort of a compromise
involving. OF course. further reductions
in commodity prices Undoubtedly the
whole affair comes as somewhat of q
shock to those who have been rushing
into the stock market on the assumption
that prices having been stabilized the in
, dustrial adjustment was practically COM
Ipleted. But after all, from a stock market
standpoint, what has happened is the
vary hest nosRible thing that could hays