The New York herald., 1920-01-11

securities that are bought for strong
boxes. In face OF most discouraging credlt
and money conditions the market has
acted exceedingly well. This can be eX-
planned only by what appears on the sur
face-a steady flow of investment funds
In small amounts to take securities out
of the street and a technical situation de-
velopfng through persistent short selling
by spectators throughout the country.
Investors should give the question of
marketability careful consideration. New
issues. unless well fortified should be
avoided. in my opinion. All securities are
nowadays subject to special considera-
tions- The market position in each issue
has a widely different phase. This is
condition that Wall street never before
experienced. In the old days we had the
railroad group, a few steel stocks, a few
coppers and dozen leading industrials,
all of~which were under the wing of a
comparatively few financial interests
HENRY CLEWS IL CO.-While the
year has opened favorably with relatively
low rates for money and with a good busi-
ness outlook, the necessity for continued
caution and for care in making commit
ments again has been emphasized Rec
ognizing the good features of the situation
the general run of shareholders are disin-
clined to sell, feeling that by exercising
patience they will come out on top in
'NDCAAS
limited and without any great pressure
TO sell il is natural that sort of deadlock
should exist. Conditions of a smiar kind
may probably be expected pending set
tiement of the important issues now at
stake in national legislative and executive
action and until the money and financial
situation is clearer
HALLE ~ STIEGLTTZ.-T'he Keynote
to the future of all business in this coun-
try is supplied by the steel industry,
which now is working at or near capacity
and which is promised capacity business
for the rest of the year. We continue to
favor the purchase of the coppers, steels,
equipments. motors and oils.
COHEN sS HESS.-For the major por-
ton Of the week the market was narrow
and uncertain, due primarily to the dispo-
sition of the banking powers TO restrict
speculation by high money rates. Toward
the end, however, optimism Increased con-
sderably as the date approached for the
signing by the Allied Powers in Europe
Of the treaty of peace with Germany
Sentiment also was improved by the grow
Ing belief that the politicians here soon
will reach a compromise on the treaty and
thus clear the path to foreign markets for
An erican products That bright outlook,
however, was dimmed in the last hour of
trading on Saturday by unconfirmed re-
ports that the German government had
showed a big decrease. In that connection
a tabulation of the earnings of number
OF trust companies of this city for the
twelve months is interesting. They show
the total net earnings OF twenty-five or
the companies for the period to have been
s292e2.5 500. The average dividend paid to
stockholders was 1913 per cent, while the
aggregate surplus and profits increased
s10,S50, 900.
Reverting tc the market outlook, caution
in commitments appears wise. Steels,
sugars and seasoned industrials look good.
WOOSTER, THO1LAS q CO.-Many
items last week encourage the investor
In the belief that we have seen the worst
of our troubles and the constructive side
of the market again will take the place of
pessimism which has obtained for some
time 1t looks as If the railroads were to
be treated fairly: copper and silver con-
tinue strong with an advancing tendency;
foreign trade and oil demand shows an
other large increase. For the moment we
advise purchase of good stocks on any
decline.
policy of the Federal Reserve Board will
be to hold rates high and to prevent the
loaning of funds for any but legitimate
business purposes. They will try to re-
St-.S+ credit without -curtaiiing industry
The Federal Farm Loan Board is at
tempting to keep down unwarranted specu-
iation in farm lands by refusing to com
pete with private loaning agencies and by
declining to loan more than 500 an acre
even where land is selling from S250 to
s400 an acre. In view of these facts as
to credit exhaustion II is evident that a
bull market in the near future is virtually
impossible. The most that we can hope
for is a traders market with some strong
and some weak spots. More likely we will
kox m ma fnr m few
weeks. with sharp breaks in some of the
stocks that have flourished most since
1915. We would not be surprised to see
drastic declines in some of the motor. oil.
rubber equipment and steel stocks. While
we do net expect railroad stocks and bonds
to advance in the next few weeks, we
think that they can be bought with reason
able safety on moderate declines
J. =. BACH & CO.-The squirt in prices
at the beginning Of the year seemed to in
dicate that the expected January rise was
at hand, but this soon spent itself, and dur
ing the week irregular markets have pre-
vailed without much trend There is. how
ever, a certain sturdiness manifested, with
Indications that some of the stocks have
still strong holders behind them. This spe-
cialty activity will probably continue inter
mittently until the SOLDERING conditions con-
fronting the financial and industrial world
bring the usual late-January and Febru-
arN reaCUOnS. Inc trenu OF the market
then will be influenced by the outcome or
prospects Of solution, OF the larger prob
lens. The presumption is for a continua-
tion OF high costs and maintained indus
trial activity during a good part OF the
year-overhung with the murky atmos-
phere Of the Presidential contest.
McCLAyE & Co.-As to the imme-
date future of the market. We see no
reason to change the opinion expressed re-
Gently. We think it trading market and
advise purchases on really sharp reactions
for trading profits or the purchase of in
dividual stocks that move past recent
highs In the last instance we should
limit losses and get out OF any individual
transaction whether with a profit or a
loss the moment the activity in that par
ticular stock ceased.
C.L. HUDSON & CO.-The soundness OF
fundamental conditions are revealed by
the action Of the steel equipment, copper
and other metal markets. The same in