The sun., 1919-04-14
Market Letters Continue to
Reflect Bullish Sentiment
and Enthusiasm.
SOME ADVISE CAUTION
Generally Brokerage Houses
See No Reason for Prices
to Descend.

and In only very few cases Is attention
paid to psssImistic views expressed here
and there among market operators. The
general view appears to be that. regard
less of the fact that the market has had
q long upward movement, there is no
reason for its climb to stop yet APP
pended are excerpts from some Of the
letters giving opinions OF the market
experts as to the probable future course
OF trading:
J. s. Bache & Co.: wall Street gets
Information from every quarter and
passes judgment The Judgment APP
psrently 10 that business will gradually
resume In normal channels and spread
into great activity Wall Street sees
that high prices for most things will be
maintained and high wartime profits
will continue II activity increases. Those
companies in which activity liz existent
are making large profits. and their
stocks are selected for bull movements.
These stocks arc the specialties, and to
their movements the activity OF the mar
ket 10 mostly due. Miliion-share days
persisted In. have indicated distribution.
Wall Street loans do not yet show large
public participation. and the bulk OF
stocks appear to be still in strong hands
Reactions do not provo termination OF
activity"
Goodbody & Co.. Because a few mil
lion share days have usually marked
elimination of a bull or a bear move
ment, It lie generally assumed that tho
market must turn around, after four
such active days as we have had this
week. Bears had courage yesterday to
Jump In and sell stocks right and left
Forgetful OF the fact that they have sig
nally failed In several similar attempts,
H<.nA ia
few tweeks. they apparently expect to
succeed by a more determined effort.
We do not say that they will not sue
coed in breaking this market for a de-
cline that will wipe out from one-third
to one-half of the gains OF the last two
months We express our candid opinion
that conditions are not ripe for a con-
siderable decline, and that in attempt
ing to bring 1t about the bears will part
with more OF their adipose tissue accu-
INFLATED during the last two years"
No sign of Selling Pressure.
wrenn Bros. & Co-"slow distribu-
ton of stocks Ii apparently going on,
but the market shows no sign of SELL
ing pressure and there may be no such
pressure for many weeks. The readjust-
ment OF prices and profits to a peace
basis Is going forward: stocks which
are showing strength are chiefly those
which have been free from depressing
influence OF this readjustment The
strong groups include motors, chem-
calls. oils, shipping shares. sugars. steels,
foreign trading companies. railroad
equipments and leather shares. The
motor mpanies. with the removal of
war restrictions on steel. began pro-
ducing In February at n rate which, IL
continued for a year, would establish
new high record for automobile produc-
ton. Some OF the most prominent
chemical stocks are dependent largely on
sulphuric acid. which Is still selling 100
TO $50 per cent. above peace prices
the sugar shares are supported by prices
for raw and refined sugars which are
much above the war level and the ship
ping companies are getting the benefit of
ocean freight rates which are about 400
per cent. higher than before the war
Steel company shares are in pretty good
shape because the commodity after
making an advance OF nearly $40 per ton
over pre-war prices has fallen back only
about $3.50. The foreign trading com
panies are enjoying war prices for
American exports. freedom from Ger
man competition and partial freedom
from other competition. The railroad
equipment companies are working on old
contracts for equipment, which were let
at war profits. and the leather shares
are benefiting by higher than war prices
for export shoes and leather. and by a
great foreign demand Admittedly these
groups Of stocks are bound to lose their
special advantages as prices and condi-
tions gradually tend toward normal"
Markoe, Morgan & Co.: Sentiment
in the stock market is decidedly mixed
although IL cannot be denied that un-
DERIVING conditions are fundamentally
strong. Purchasers of stocks at lower
levels as a rule evidence no inclinat ton
to take profits at this time, and realizing
as they do the great era Of prosperity
which this country should enjoy during
the next few years they naturally are
inclined to hold their securities for very
much higher prices Sound Industrial
issues still show abnormally high income
returns and the market will have to
advance very sharply before stocks will
sell on basis which will compare with
the levels prevailing in pre-war times
The leading banking interests. while an
tbcipating higher prices in the markets
during the next SIX months. are COM
nitted to a conservative attitude, and
are not as a rule recomme nding pur-
chases except upon fair recessions from
prevailing price levels. Our views CO.
incide with the attitude of these inter-
ests and. while we are in entire sym
pathy with the constructive side OF the
market. do not advocate extensive COM
mitments except on a fair recession from
prevailing levels. There are still many
perplexIng problems which will have an
important bearing upon the market to be
solved. and until these matters over
shadowing the markets are removed we
would exercise caution regarding the
purchases of securities"
Technical Position Good.
Paine. Weber & Co: "Notwithstand-
ing great activity and the sharp adj
vances In many stocks. the technical po-
sition OF the market Is surprisingly good
in this respect. There are no evidences
OF overexpansion In loans Of representa-
tive brokerage commission houses and
no indications OF pyramiding by clients
OF such frms, Large operators have as
sumed and maintained an aggressive at
titude on the buying side Of the account
This constructive attitude fairly reflects
tho opinions Of we'll informed interests
who are confident that with completion
OF the peace negotiations a tremendous
Increase and forward movement will be
seen IN general business all over the
world. Initial stages OF the business re-
oovery are in evidence In the United
States. Many industrial companies are
able to ignore readJustment to a large
extent, and In numerous cases have def
mite prospects for broad Increases in
business volumes. Intrinsic values of
leading American Industrial stocks are
higher than ever. and these values prom