The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1884-05-29
FINANCIAL AND COMMERCIAL
The FinanciaI Situation.

The Financial Situation.
Another week has passed. In no wise differing
from the last except that the past few days have
witnessed sudden rise in railroad stocks. This
action probable in the nature Of things, but to
estimate its character, thing must be constant
ly borne in mind. viz. that the public is ont of the
market. This important fact shows how futile. in
all probability. this last rise will prove to be. In
fact shrewd operators believing to be effort to
create market for unloading some arge blocks of
stock one selling short on higher prices their onyfea
being the present large short interest We would
insist, then, that there can be no legitimate and
permanent rise till outsiders are tempted by a
low range Of values to begin to buy and this scale
must be what sanguine men would call very low,
relatively and absolutely, in high priced we'll as
low-prised stocks before the public wild feel just-
fed in again taking risks in Wall Street.
The losses they have sustained and their distrust,
which has been so much increased the past few
weeks, can be overcome only by prices which
one can doubt are cheap. 1t must be remembered
that the great majority Of outside speculators (un
professionally are always "long of the market;that
is they buy for RISE when prices are low, but few
sell stocks when they consider them too high. For
this reason they have lost so much money by buy
ing on high market for further rise that they
cannot be tempted again except by extraordinary
Inducements. But why. it may be asked, are these
large operators SO DESTROYS of lifting prices q few
POINTS to throw overheard large blocss which even
&C much higher range are heavy loss on the pur
chase price? Rich many of them are, they are so
heavily involved, that even they must sacrifice or
possibly go under. 1t is estimated that one man
alone has seen his wealth shrink twenty five mil
Lions in three years. Now, although no one knows
his exact standing to-day a fair guess would be
about as follows: II he does not get rid of millions
of stock pay up his loans and pocket the loss, to
start fresh he will be likely to have hard rub If
pr ces continue to drop heavily Still his position
ID in this respect different from the small and un,
known operator. II worst comes to worst. be can
change his tactics and dare his creditors to sell him
out foretelng their ruin and universal panic with
his own AS officer Of large monied institutions,
and heavy debtor to others, he is in position to
take the ground of large dry goods dealer in 1873
towards the New England banks. We told them
they had got hold him up without predicting the
same, we insist it is not impossible.
With no immediate prospect of higher prices what
is fair resume Of the financial situation at present?
From the longcontinued liquidation, and low prices
In merchandise, together with the preparation OF
everyone for crisis think there is no ground to
fear general panic. stock panic we have had,
short but sharp, followed BY more failures, doubt
1eePt ana Qull DuSlutsS, WIN hucu pAOspOSD Az 70
reasonable to expect lower prices for stocks, with
quick rallies before bottom is reached But it must
be reached sometime. There ia vslue in railroads,
matter how blue everything is at present, and too
persistent bears may lose all they have made. AL
though 1t may not be unsafe to buy certain stocks at
present and wait for a long pull, it Is moro than
probable that the next six months will offer much
better market. ~ esy Il JaHos "a
with reference to giltedged bonds the prices have
not as yet deprecated as much as stocks. This is
the more surprising because of their great rise the
past five years. To be sure they can be bought
to better advantage than two years ago, but this
advantage to buyers must continue to increase up
to q certain point. Although the high rates Of the
past viii never return, it may well be doubted
whether first class city bond at per cent will
ever permanently sell at a premium. An kinvestor
this class of securities will be more likely to av-
erage per cent than per cent in the long run.
General trade is quite dull
Review of Portland Wholesale Market.
FOE THE WEEK ENDING May 30
Changes will be noticed in Lead, Lumber, Oil, Fish,
Sugar, Grain, &C.