The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-09-15
INVESTMENT VIEWS
AND THE OUTLOOK
Optimism Continues to Be
Keynote of Week. End Stock
Market Letters.
CAUTION is STILL URGED
General Belief of Expectation
of Further Advance Is
Expressed.
CAUTION is STILL URGED

| note Of the various market letters sent
! out over the week end. While many OF
J them are advising caution and careful
| discrimination in all purchases they are
almost without exception based on the
belief that further forward movement
| may be expected in the immediate fu-
! ture. Various factors are pointed out
az being Of direct favorable influence
/ and the possibility of a steel strike,
which doomed so great few days ago.
is discounted pretty generally in most
II the letters.
Paine, Weber & Co. say: "Impor-
mt general factors include pending ad-
| justments of the labor. foreign ex-
change and railroad situations ana of
the level Of commodity prices, together
| with disposal of the peace treaty. All
Of these elements may or may not be
decided in manner that will be con-
strued by the market as definitely IA
| vorable to prices. Concrete events such
as increased dividends promise to con-
tinue TO stimulate prices and induce In
| vestors to retain their holdings 1t Is
| evident that with so many uncertainties
the definite basis for n general advance
In prices Is not we'll established. At the
same time there Is so much of encour-
aging nature to cause Investment abb
sorption OF stocks that the market prom
Uses to develop good buying on all fair
recessions and individual stocks may
readily show special strength during
coming weeks"
Block, Maloney & Co. say: 1.-THE out
look seems better and the labor heads
mar have concluded that they have gone
- far. But 1t is wlsest and safest to
wait until we get something more def
mite. even II you pay more for stocks.
We believe that the future has more
large and broad markets in store and
that the labor question will eventually
be settled"
See Undercurrent OF Confidence.
L. w. Wagner & Co. say: Despite
the fact that the business and financial
community Is confronted with the most
complex situation In history there Is an
undercurrent OF confidence that did not
exist few weeks ago. This Is prob
ably due to the feeling that the worst
that can happen Is fairly before us and
to- the fact that partisan politics play ar
important IL not the leading part, ir
the bitter controversies that are now
restricting industry and mercantile ex'
pansion. Capital and labor are gradu-
ally coming together to meet upon COM
mon ground and the time seems not far
distant when tho capitalisuc aut0craf
and labor representatives of the radica
| type Will ma themselves IN an uileuNl
able position"
Clark, Childs & Co. say: occasionally
we are encouraged, as was the case thi:
week. by indications that come Of the
dark spots are Frightening; but ther
Immediately 1t appears that things are
so correlated that the relief, to do much
real good. must extend In many direc
tons. The conclusion, therefore, is that
our stock market for the present will
register only spasmodic moves, respond
ing TO the news grist OF the day. Buy
Ing on the decline following the stee
strike cali seemed only professional"
Goodbody & Co. say: at looks like
change again in the trend of prices
We do not say higher prices will not
be made. In fact we rather expect they
will be seen In some OF the specialties
The market. however. Is thin. The short
interest is old and somewhat reduced
The fact that many did not sell at higf
figures on account of taxes eating VI
profits. limits the buying power usually
found to come from those sources. Stop
orders TO protect short sales from spec
tacular action OF pool stock are most
necessary. But such protection is ever
more needed when purchases are made
except on very sharp declines. The
present market Is influenced by traders
and temporary news exaggerations."
Market Has RnllyinS Power.
wrenn Bros & Co. say: Conditions
for the time being at least are such as
to give the market good rallying power.
During the early part of the week.
owing partly to these conditions, and
partly to covering, some groups of stocks
rose buoyantly. The export financing
company which is said to be In process
Of organization for the benefit OF the
\ / mi MT iu
tgarded by traders as II II were almost
a guarantee of the continued prosperity
OF these companies and of the further
conquest OF foreign markets on the part
OF other industrial corporations. Doubt
less Its Importance IS overestinated but
II may very likely remain n market
factor at least until the details are
announced. Another factor is the grow
ing feeling in banking circles. that tho
tight money period is over. and that
from now on the supply of loanable
funds will gradually expand. This feel
ing, too, looks like overoptimism, since
the real monetary strain does not usua lly
begin until October. Besides these items
the Presidents Labor Day message
against strikes is favorably regarded
II IL an open secret that the steel man.
agements are not worrying about the
proposed strike; the strike II II occurs
Is expected to develop into either a
failure or n lockout the untitled orders
OF the Steel Corporation made n better
showing than expected; sterling ex-
change is Not as weak as II was, and
IL Ia reported that the public is huylns
stocks rather than selling them"
. Shonnard, Mills & Co. say: 9Th,
marketing OF the huge American crops
has already passed the apex Of it's great
est financial burden, and declines in tn,
foodstuff items have been sufficient Il
, relieve, In degree, the economic anC
! social unrest without invading the pro
, ducers' position as to earnings We re
gard the stock market as in a stront
technical POSITION and believe, with !
! favorable termination OF labor ant
capital negotiations. that the way Il
: paved for stability and strength"
Richardson, Hill & Co. say "Whil,
! organized labor threatens TO cripple IN
. country's basic Industries, and the OK
pansion OF export business becomes IN
creaslngly difficult. we doubt II the con
strucuve features OF the I situation
;. varied and genuine as they are-wiI
materially raise the level OF securit,
! prices at present, The volume of trans
5 actions is likely to subside until IN
0 prospect is clearer"