The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-07
INVESTMENT VIEWS
AND THE OUTLOOK
Market Letters of Brokerage
Houses Continue BulliSh
as a Rule.
SOME LESS OPTIMISTIC
One Writer Declares,Public Is
Running Away With the
Stock Market.
SOME LESS OPTIMISTIC


The weekly grist OF market letters
sent out by various brokerage houses to
their customers continues to show that
bv far the biggest majority of the brok-
ers are still bullish. In one or two In
stances II Is pointed out that rises in the
future may not be expected on the scale
OF those of the immediate past, but as
a general proposition the letters are de-
cidedly optimistic. As one Of the writ
ers expresses the present situation, the
public is running entirely away with the
market, and the professionals have no re-
course but to follow along with the gem
eral current. How long it will last. says
this writer, depends entirely upon how
long a time will elapse before the en-
thuslasm Of the public now ruling the
market will wane. Excerpts from some
Of the letters sent out last week follow
W. ]. wolman & Co. say: zone fea-
ture of encoura cement has been the
marked shifting of interest to the steel
IL showing a noticeable revival. and It is
expected that the Forthcoming report OF
the United States Steel Corporation Will
show gain in the amount OF unified
orders Food stocks, as Is quite natural
have participated in the rise. ana the
rubber and tire Issues have scored sharp
advances. On account OF the command
ing financial and industrial position OF
this country we see no reason 10 iooh
for any abatement of the strength III
American securities. The great part We
are 10 plav in world reconstruction must
continue TO receive reflection in the
shares Of the corporations engaged IN
this task. Earnings are bound TO DC
LARGE and on the basis OF present anu
prospective income stocks do not appear
to be too high
Innution Causes High Prices
r. w Wagner & Co. say : "Securi-
ties are selling at high levels because
of imitation which is concurrent with the
deprecated buying power OF the doiIar.
because leading corporations have pu'lt
I'D huge SURPRISES during the war period
and have an outlook for enormous peace
business, which promises 10 be almost
as profitable as was their war business.
AS a concrete example take the Inlted
States Steel Corporation. Since ofSa-
rization United states Steel has built
IN surplus after dividends equal TO
$50 a share for the Junior Issue OF
stock more than $1,000 900, 600 has been
Tut back into the property in the same
nsriod Thus Il is clear to the lay mind
that United States Steel selling at $llV
q share with a property value in excess
OF its capitalization must be mighty
GOOD investment. We have all witnessed
the wonderful development Of United
Cigar stores pf the petroleum industry.
the automobile industry and the tire
business 40 one can Eainsay that
those businesses before our very eyes
every day have a most secure future
While the foregoing should not be re-
sarded rs an unqualified approval OF the
skyrocketing Of special issues on the
stock Exchange, it Is calculated TO in
form those who are not careful readers
~ commercial and financial data that
securities on the whole are not selling
at dangerously high levels"
shonnard. Mills & Co. say; THE
forced selling of the two or three weeks
preceding the signing Of the treaty evil
IDENTIFY put the market in strong tech
meal position. The continuation OF
high money rates. however, has placed
q brake upon undue activity. but the
urdertone has been Enthusiastically firm
This confirms our judgment expressed
in recent letters that the high prices OF
month ago were still far from dis
counting the intense industrial and COM
mercial activity "hich are 20 char
acterize the ensuing years of recon
struction."