The sun., 1919-06-09
INVESTMENT VIEWS
AND THE OUTLOOK
Brokers More Generally Are
Advising Investors to Buy
Stocks Cautiously.
ARE MORE CONSERVATIVE
Writer Likens Some Issues to
Balloons Which Have Lost
Their Anchorages.

While the stock market continues 10
make UP the grave setback of the early
part Of last week which resulted from n
clamping on of the lid by the banks
and the raise in money rates to IL per
cent, brokerage houses generally are
coming more and more to advise caution
In their weekly market letters to Gus
toners. Those houses, most optimistic
during the recent bull market have
adopted more conservative attitude
and those which have been pessmistic
in late weeks have adopted q downright
bearish attitude. The following excerpts
from letters written by some of the Stock
Exchange houses to their customers give
an idea OF the general attitude toward
the market assumed by their writer's.
]. 3. Bache & Co. say: THE market
situation is viewed from different angles
by different people. The setback early
in the week. due to apprehension, infiu-
enced by a suddenly high money rate,
has to certain extent subsidized A
market unprovided with strong under
lying foundations could not have passed
through this phase without q break Of
more substantial proportions than en-
sued. Within twenty-four hours after
the reaction, which did take place. the
whole movement Of prices had been re-
sumed with much the same Characters
tics as had prevailed before. The situa-
ton Is now unQuestionably less
secure than It has been. The rise
in prices, which began some time since
under the stimulus OF investment buy
Ing, carrying advances to n point where
the general public became interested and
finally rushed in, creating a general
speculation for the rise. has now changed
its character and is being carried for
ward almost altogether on the specula-
tive influence in which all arts of ma
nipulation permitted are being used.
Some Stocks Have Lost Anchorage.
Loans, in the meantime, have risen
very heavily. and while not yet at the
level where bull markets In the last two
or three years have broken are undoubt-
eddy approaching these levels. Increase
In prices has been extremely Irregular
some stocks selling at comparatively
enormous advance, This may be due
to the fact that strong holders with large
incomes are deferred from selling on ac-
count of the necessity of turning over to
the Government an excessive proportion
OF the porfits which would be thus real
lied. Consequently prices in some
stocks which should long ago have halted
have continued TO rise because the origi-
nal buyers are barred for the reasons
above stated from taking their legitimate
profits. These stocks have become some
what like observation balloons that have
lost their anchorage"
A. A. Housmann & Co. cay: "In our
opinion SO long as general business
prospects are as promising as at present
there is no danger in the situation save
that created from time to time by the
Ill advised buying of specialties by
those who fail to realize. the possibilities
OF danger. or by those who are willing
to take the large chance for the sake of
inordinate profits
Lamborn & Co. say: The present
million share day market has reached
the record of the 1901 bull campaign.
and promises to leave that memorable
period far in the shade before the culmi-
nation OF the rise. We have had this
week a 100000 share day, with the
frst real break of Notwithstanding
TO an average of three points for the in
dustrials-but the speedy recovery plainly
points to an even greater volume session
before the imitation OF money and credit
loses its stimulating influence.
There is no use going against the
tide. which is still strongly on the mood
since the speculation mad public, with
pockets full OF fifty cent dollars, has the
bit in its teeth fguratively speaking
and refuses TO give way to urgings OF
caution from banking quarters. In
occasionally the wise trader will dis
eliminate against the cat and dog
brand of securities and keep we'll mar
gined against the eventuality of sharp
shakeouts from time to time, but these
are merely incidents in a bull market
such as the world has never witnessed,
the aftermath. be 1t said, OF a likewise
Unprecedented war
street Ahead of Revival,
Brokers loans are not so inflated as