The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-08-11
Majority Of Market Letters
Continue Moderately Bull
ish on Stocks.
SOME OF BEARIsH TONE
That Securities Will Not Drop
Lower at Present Is Held
by Few Writer'S.

them are very decided In their opinion
hat stocks have seen the lowest level
that they viii touch for some time, and
advise purchases OF all standard stocks
Az present levels. Here and there In the
saskly batch OF letters sent by various
brokerage houses to their customers ic
dlscoyered one with a distinctly bearish
ring. but by far the greater proportion
Of them reflect the attitude that the mar-
ket is due for another important up the
scale movement.
Halle & stieslltx say: President
Wilson'S address should be we'll received.
I; was the most statesmanlike speech he
has delivered In q long time and should
have the effect OF bringing before the
American public consideration Of every
economic and social problem and the
causes and remedies therefor. While the
address warrants no excited bull market,
II does seem to warrant the conviction
that the future level of standard shares
il upward. Some hesitancy may result
before Congress gets through determin-
IN the faure at which profits OF cor
poralions become unconso'onable. Tn.
propoaal for Federal licensing OF cor
porations engaged in Interstate cona-
merce is liable to alarm those who feel
that nationallsing OF our industries and
means OF transportation Is destructive
tendenc
Richa rdson, Hill 4 Co. say; whether
the handicaps will completely smother
the burning optimism which this weeks
douche OF disquieting news has at least
temporarily quenched remains to be seen.
Technically the stock market Is better
of for the disturbance. Weak long ao-
counts have been eliminated and the
short interest augmented. 1t is very
doubtful, however. IL a resumption OF
the forward movement on a broad scale
will be inaugurated until the track Is
clearer OF obstacles
wrenn Bros Co. say: Ever since
the end OF the FIRST week In June there
have been technical evidences of dis
tributlon of stocks by large holders, Mon
days bad break in the market was prob
ably due not wholly to the Socia listis
railroad programme Of the brotherhoods
but in part to an overexpanded mAcgir
account in the market itself. Although
call money loaned at the lowest level OF
recent weeks, there Is no Indication thai
the monetary situation has improved
more than momentarily. and the heavy
burden OF financing the crop movement
10 yet to be met. It 10 not until after the
end of August that the crop movement
attains large proportions. and not unit
November or late in October that III
financing becomes the most difiicult For
eign exchange Is still weak. rejecting
the unstable position Of much of our ex'
port trade. and the needed loans to Eu-
rope are difficult to arrange, because Of
the limitations OF our own supply OF cap
ita! Through the issue OF $4,000. 0oC
Of new securities in the spxce of sixty
days-half as much as we ordinarily
float in whole year-corporations have
IL a. to- oh "a fana ha1
weather, and in this sense existing val
uer are fortified"
Bears Have Their Innings.
Lamborn & Co. say: The bear party
which so long fought the rise with sucf
poor success had their innings the pas
week. seizing the psychological momen
when the news was decidedly Of a char
acter to throw Wall Street in a fit of the
blues, the cumulative effect upon a mar
ket technically weak being readily i'm
agned The readjustment was radical
furnishing fine opportunity for bargaii
hunters to pick up attractive issuei
throughout the entire list, for INDUSTRIAL
and rails alike dropped in the debacle
Unless we assume that the stock marke
Is discounting future de1ation in cred
It's. commodities--and last but not least
lhbor-the break must be considered a
merely an incident in the general up
ward tendency. Much as return to nor
nal conditions in the country Is to b.
wished, we do not feel that this 10
probability during the next two years a
best, for, after all. the efforts of Wash
ington, we'll meant as they may be. ar
not likely to have more than q tempo
rary influence against the inevitabl
workings of the law of supply and de
mand."
shonnard, Mills & Co. say: We d
net consider II useful to any longer dwell
upon any radical effort on the part
the railway workers, or indeed any othe
class OF workers, having employment II
Interstate commerce or directly unde
Government supervision or direction
That the shop workers were requested
to 70 back to work. and that the railwa
workers had 1t suggested that ther
would be negotiations with them unles
the strike was abandoned IL sun1cien
evidence that progress has been made !
handling this situation. 1t would b
illogical TO expect immediate return O
confidence on the part of the investmen
and operating public. but at the sam
time the decline has laid bare some ex
traordinary opportunities for both classe
Of security market dealings. and we es
pect this to be followed by good suppor
10 nearly all groups"
Goodbody & Co. say: I'VE espresso
the opinion last week that practically a
stocks should be sold on rallies and this
most stocks should be sold without wal
Ing for rallies. We also said that "
expected many rallies. >Jotwithstandin
the severe declines Of the past week "
continue to hold the same opinion tins
We held week ago"
Merrill, Lynch Co. say: "rhe lAbC
situation. the Presidents message
Congress and the strike OF the New HI
ven shop workers all caused an unsettl'
nnent in the market. Advantage WI
taken Of all this news by the bear plum
ers and helped along by stop loss oroei
put into the market on account OF NJ
satisfactory telephone service due
many Of the operators being absent I
delayed by the Brooklyn Rapid Trans
strike. 1t is our opinion that the ma
ket has seen It's low level for the tin
being and stocks ought to be purchase
around these levels."
Stocks Pass to strong Hands.
A. A. Housman & Co. say: The sit
auon has improved to the extent thi
stocks are passing from weak into stror
hands The technical position IL by !
means stabilized as yet. but, at leai
me public must now realize the wisdo
OF not overbuyDE"
Anderson, Bruins q Co. say: '-rl
security markets ara facing a numb,
o. adverse factors Labor dsman.
nave reached a point where new ente
nrises are discouraged and operations
Industries inpoded. Sterilization
toreign exchange would be health