New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-11-10

Wall Street opinion is that the board
would hardly be able to 60 so far under
present conditions. But the warning
was emphasized by high money rates
and, at times, by shortage. Of funds
so severe that brokers had difficulty in
filling their wants even at fancy prices.
Yet the market held very we'll. There
was some reaction, 1t is true, but moth
ing in the nature of a really serious
setback, such as might have been ex-
pected in the circumstances, occurred.
At the close of the week the average
price of thirty representative indus
trial stocks was 115.47, or 2.96 points
below the close Of the preceding Satur-
day, while the price Of twenty railroad
stocks used in computing The Tribune's
averages was, at $3.50, up eight-tenths
Of a point.
But if it did not cause an important
recession Of prices, tight money and
the possibility of its becoming tighter
at least had a restraining influence on
trading. Toward the end Of the week
the volume Of dealings began to shrink
appreciably. Moreover, the market
lost much of Its buoyancy. Stocks did
not go up so easily, apparently because
it was harder to attract following.
A disposition to hold aloof was in evil
dence. Price movements consequently
were within a narrower range, though
still wide enough to make the market
attractive for the trader. On the
other hand, stocks did not react easily.
AS one veteran trader remarked: "They
look strong even while they are going
down" He was right. The resistance
to selling pressure was undoubtedly
strong. 1t was perhaps significant
that after even relatively slight de-
clines the market became dull, only
I hat yI,h ho
came. Holders were not easily to be
frightened into selling. This was the
more remarkable because Of the fact
that not q little Of the buying had
been based simply on the fact that
prices were rising-the public, that
IS, bought prices rather than equities.
Evidently the technical position of the
market is very strong. But it would
not be surprising if the market should
be relatively dull for a time.
That market sentiment should remain
optimistic in the face Of nationwide in
dustrlal strife--with the battle center
Ing IN the two greatest basic indus
tries, coal and steel-seem remarkable.
But Wall Street finds in these very
troubles the basis for a hopeful view
of the future. 1t Is convinced that the
strikes are doomed to certain defeat,
anu 1t believes the defeat will mean that
the nations fight against radicaism
which only few weeks ago had an
extremely threatening aspect, will have
been won. AS one observer remarked.
when council called by the President
refuses to endorse collective bargain
ing as an abstract principle, the tend
ency must be considered as reaction
airy rather than radical.
A considerable section of Wall
Street opinion holds that the specula-
ton IN steel stocks, among others, has
been overdone. The other side retorts
that 1t is only beginning, and glibly
Asset value" Is one of them. That
the assets Of most steel companies
have increased enormously cannot be
disputed. Large sums have been ex-
pended on betterments and improve
ments, and liquid assets have expanded
tremendously. Moreover, the doubling
of prices has added vastly to the value
of properties. The result is that, on
paper at least, certificate of owner
ship IN these properties represents in
cases much more than it can be sold
for on the Stock Exchange The asset
value Is only theoretical figure, how
ever. The holder cannot expect to cash
process Of deaation goes s," on, as ASSET sat
values will go down with other values.
Which Is not to say that meanwhile
security prices will not rise further.
Another argument in favor Of the steel
stocks Is that the volume Of pros pee
tive business Is immeasurably large.
The country is short Of housing; The
railroads have deferred purchases that
cannot be much longer delayed, and in
numerous other fields work has been
held back that will call for enormous
quantities of steel when labor condi-
tons become more settled. Added to
this lis great foreign demand. But
that involves the question of credit.
The matter of providing credits for
our European customers is perhaps the
most disturbing problem the financial
world has to contend with; Large
maturities, aggre eating, with interest
perhaps s7oo00o,0oo, will have to BIS
met in the next twelve months. In
terest on advances made by the United
States government will call for another
$5O0,O0O,000. The trade balance will,
at the present rate, be about $4,000,
100000. This Is a total exceeding
SS,000,0oo,o0o. 1t Is staggering sum,
the more so as 1t is apparent that no
Siedt snare ol IL can DC rRlSeQ by d.
rect appeal to American investors. That
cannot be attempted with any assur-
ances of success until there has been
long campaign of education. Time
will not permit that. Any way, the
public now seems to be more in a mood
for speculation than investment. What
the outcome of this critical situation
will be no one can foretell. But two
large things appear to be reasonably
sure; there will be future declines in
foreign exchange rates and a shrink
age in our export business.
This, from the mornings mail. is an
illustration of the fact that no place
Is so remote as to escape the craze for
speculation. 1t is from state In the
Middle West: II guess you know all
about stocks. l don't know much about
them, because Pm long ways from the
railroad and don't see the papers, and
haven't got any money, but would like
to make some. Please tell me what to
buy to make some money, and would
they take my land, instead Of money,
for $500 worth of stock and give me
$500 IN cashG My land is worth 81 900. y
The problem was too much for US.
When the end Of this boom In stocks