The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-23
INVESTMENT VIEWS
AND THE OUTLOOK
Weekly Market Letters Of
Brokers Generally Have OPP
timistic Sound.
SOME WARNINGS GIVEN
Writers Present More Bullish
Arguments Than at Start Of
Present Market.
SOME WARNINGS GIVEN

There Is a singular unanimity Of opin-
ION concerning the. future course OF the
stock market in recent weekly letters OF
brokerage houses to their clients. and
almost without exception they show de-
eieedly optimistic feeling. With here
sad there warning against some OF the
pitfalls OF the market they present moro
bullish arguments than they have since
early in the beginning Of the present big
upward movement The following ex-
tracts from some Of the letters give some
idea Of the way ths Wall Street profess
SIGNALS view the immediate future:
Lamborn & Co. say: ''waii street Is
never keen on post-mortems and conse-
uuently a discussion Of the why's and
wherefores OF the shakeout which this
week gave the speculative fraternity a
cool douche might seem stale and un-
profitable. Sufficient to say that no mat
Ger where the money furry found Its an
spiration-and fanciful tales of con-
sriracy on the part Of high finance may
BE- dlscounted-ths effect has assurediy
been to rectify technical position that
had become dangerous The rapid rally
and subsequent stability Of the market
proved plainly that basic conditions are
sound; for the Sig interests who were
unwilling to contribute 50 per cent. of
their profits to the tax collector by SELL
ins holdings grasped the opportunity to
purchase at 10 to 20 point drop in spe-
oialties. Analysing the situation, there
fore, We feel that while a breathing spell
~ logical in Wall Street after its strenu-
Gus advance the trend Is still upward, in
Keeping with the imitation Of commodi-
ties. money ana wages"
". J. wollman q Co. say: "As new
phases Of the reconstruction period pre-
cent themselves we think 1t only natural
that we should have some change In the
character Of the market More atten-
ton Is likely to DO paid to standard Is
sues. such as the coppers, steels, equip
ments and the low priced rails. 1t is to
be expected. of course, that certain spe-
cialties will attract their usual following,
but the stability of the market will be
all the better conserved IL buyers use dis
elimination and select securities of solid
character and proved earning power.
Although we are likely to run into q
period of reduced activity during the
summer season the outlook for main
tained and advancing values Is encour-
aging. The market has all the ear
marks OF bull proposition, for with re-
viving industry. the gradual settlement
OF our most perplexing problems. and the
great resources Of the United States. OBJ
tlmsm Is Justified on the general situa-
ton, and particularly with reference to
securities"
Factors Creating Optimism.
J. S. Bache q Co. say: ''The indi-
Gated amount OF prosperity sustained by
the invariable and further to be de-
rived benefits from the growing and
harvesting of great crop is necessarily
creating optimism in stocks. and whether
II Is prosperity boom or an imitation
boom which is sustaining stock prices.
the high goods prices are certainly Gre
ating a long list of extra large pronts,
which will keep the securities of the
companies earning them worth what Is
asked for them and probably more.
Tho market has wlthstood the pressure
OF q frightened money market with re-
markable steadiness and has ridden
through 1t much as q good ship would
ride through tight little squat. The
sun appears to be shining again and
progress Is being made at little lower
rate OF speed"
shonnard. Mills & Co. say: 'TIere
certainly is q sure foundation upon
which to rear a speculative market. or
course there are many pitfalls ahead Of
US. and II behooves US in our reckoning
OF the future to take them into account.
In the words OF an eminent financial
expert at Washington we are bound
to 60 on getting richer and richer, II
We only exercise ordinary business pru-
dence.' We are best able of all the
peoples OF the earth to produce and
market the goods most wanted every
where. Our success in doing IL dep mds
upon our ability to maintain n substan-
tial portion OF our war gains in liquid
form TO be used as working capital In
financing our foreign sales Hence the
necessity for popular saving Ii con-
tnuing one"
Paine, Weber & Co. say: IAN I'm
portant element that lends stability to
the general list Is a relatively limited
participation IN the advance by the rail-
Iuau, blool anu COppcr btochb f1du dh
OF these issues reached levels commen-
surate with those seen In the special-
ties a much more serious situation would
have developed Another steadying factor
ID the limited floating supply of
number OF stocks which have had ex-
treme advances durirg the year. The
public and other buying power is very
great, and on declines in prices there
II heavy demand for stocks whom
recessions seems to have eliminated. A
speculation that ignores everything ex-
Dept actual calling Of loans and other
rigid restrictive measures 10 dificuIt 10
check for any length OF time"
Expect Higher Prices.
Mcdonnell q Co. say: I'VE look for Q
resumption OF the upward tendency,
though a trading market should be IN
order for some time. and we look for
much higher prices during the course OF
the year. We favor those stocks which
have as yet barely shared in the ad-
vance. The remote possibility that
Germany may not sign the peace terms
we regard as the most disturbing possi-
oility. The developments here should
bear careful watching"
Richardson, Hill & Co. say: Mean
while Industrial development throughout
the country IL proceeding In q most en-
oouraging manner. and there II no neces-
mtg apparent OF revising our faith In a
protracted period of business expansion
prosperity. Usually sharp recovery In
followed by moderate recessions. The
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