The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1879-11-03
ANALYSIS or THE BOON.
Tho Present situation In wall street
Ravlewad

Reviewed.
New YoRK, November 1.-Among those
persons who make a special study of the
stock market, none probably is bettel
posted as to the cause and effect than Col
WIN Grosyenor, editor of the Public, one
Of the financial papers published in this
city. In conversation this afternoon re
garding the prevailing high prices and the
speculative mania, so-called, he was asked
if, in view Of the present high prices
there was really any danger Of panic OIL
serious break in the market. He said, in
substance: "It seems to me absurd to sup
pose that any serious disaster can occur
The fact is that from 1873 to October, 1879
and, indeed, prior 10 the panic o.
1878, stocks had poured into this
market from all parts OF the
country. Railroads and other corpora.
tions were distrusted, dividends had
ceased, bankruptcies were occurring, the
business OF every quarter was shrinking,
and men who held securities were com.
PEELED to come to New York as the only
place where they could sell them. As q
consequence stocks were emptied here by
millions and money taken out. Naturally
prices fell as the load Of stocks increased
and the amount OF money decreased.
Thus when the year had passed capitalists
and operators here who form what Il
called the street held an enormous guam
tity OF stocks Of all kinds which they had
obtained at low prices. Atthat time about
$40, 900, 900 were loaned on calls by banks
OF this city, and probably the market
value OF stocks held here was not much
over S120, 100000. Then heavy operators
began buying large blocks, believing thai
resumption of specie payments would re.
suit In improved values all over the coun.
try. Men everywhere began to see the
steadily improving business OF railroads
in their immediate localities. In every
town in all parts OF tho country are farm
ers, merchants, and men OF small capital
who, duringthree years OF unprecedented
crops, had accumulated small sums which
they wanted to invest. They noticed that
local railroads were doing three times the
business Of the year before, and that the
financial condition OF all properties was
rapidly improving. Desiring to invest
their savings with safety and prospect oi
profits, they sent here 10 buy stocks OIL
roads OF which they had no knowledge
Thus orders to buy exceed MANIFOLD or
ders to sell, and as consequence stocks
began going out and cash coming into the
street Men bought largely on per.
sonal knowledge ot properties. Fol
instance, orders from Cincinnati were
as rule, mainly for stocks OF roads reach
ing that city. This is also true in respect
to indianapolis, St Louis, Chicago and
other points. So for the past year stocks
have gone out Of the city at constantly
rising prices and cash came in. It 4
probable that OF the stocks largely helt
here prices have advanced fully 100 pei
cent. II should be remembered in thii
connection that stocks like New York
Central and others Of unqualified dividend
paying power are largely held on the
street. The records show that something
like one-half the entire load OF stock held
In the streets has been taken out by pur
chasers in all parts OF the country. II
other words, the street has sold at an
enormous profit ene-half OF the stocks
and Of the balance remaining at present
little, II any, cost beyond the actual profit
realized. Go into any market and buy uE
one-half Of the real estate for sale, and tht
prices will rise, nor will increased value
be fictitious.
"Mr. Keene proved last year in Chicago
that the same could be done with wheat
In such cases 1t is not an easy matter L
beat prices down. Such Is the situation
here to-day. The street has unloadet
one-halt Of Its stock Tor actual cash, at suct
large prices that the remaining stocks helt
cost the operators little or nothing, and /
seems TO me absurd to suppose any proba
bility Of o serious revolution. There i
certainlyno danger until the outside pub
lie ceases to believe that the actual valu,
Of stocks Is improving, and hence cease
buying. OF course, Il will be o temporar,
reaction very distressing for speoulatorE
| Undoubtedly there Is mania for specula
ton at present, and two prices are asked
Some wholly worthless stocks as o conse
quence have advanced, but that does nc
change the fact that q general advance ha
j occurred, and that people have been buy
ing from personal knowledge and not o
n Wall street rumors,