New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-05-10
MONEY IND ETSLNESS.

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| II is the vice of the average American thai
he usually goes to extremes. Hence in busl-
ness reactions are the rule. Last week the
downward movement In stocks, which was
itself reaction from the unnatural advance III
prices forced last fall, bore frIsit in the failure
of prominent bull Speculation. and was fol-
lowed by quick upward reaction which some
people insist is the beginning of BOOM
When prices were gong down, many were sure
that the United States was altogether ruined
country, that the railroads might as well be sold
for old iron, that the trades unions would con-
fiscatc all the earnings of capital. and that An
archists were about to burn all the great cities.
Experience has proved that it is pretty safe,
when there are found folks beleving and preach
ing that the United States has gone to the dogs,
to conclude that they are mistaken and to buy
something SO in about two days the Street
was full of men VINO were sure that every diff
fcuty with organized labor had been cleared
away by the abandonment of the Missouri
Pacific strike, and thar every danger from the
Anarchists had been dispelled by the vigor of
the police in Chicago. The circumstance that
labor is rapidly increasing the cost of produc-
ton WAS forgotten, and also that Congress is
ap0roprating a great deal of money, but has
done nothing about the silver question, and
also that gold is still going to Europe.
The stock market declined rapidly on Mon
day and Tuesday, reaching at the lowest point
on Tuesday an average of only 500 % for the
same sixty stocks that opened the year at
SCI 10. 1t was not strange that a persistent
decline OF 90 per cent in the average OF all
securities, which means of course a much
greater decline IN the prices of the more active,
should cause some failures. But when the
failure of Tas1er caused no disturbance, and
the Western strikes were settled, and 1t was
reported that the Trunk lines had made more
satisfactory arran gements, the Wall Street
flock rushed to the conclusion that everything
had changed, and there was tall climbing after
stocks which had been sold by people who did
not own them. Only nine out of sixty stocks
were lower on Saturday than on Tuesday. The
advance in the average for the whole week was
over 81 per share, and at the close the average
was $57 OF. The Missouri Pacific rose 43s.
which III view of the settlement was not strange :;
why Reading and Norfolk preferred should
have risen over three each, it would perhaps be
more difficult to tell.
Turning from fancles 20 facts, the Bank of
England reduced its rate last week, ard
$2.69S,3S2 IN gold went out from this port.
The banks reported loss of 81, 057, 500 in
specie. and the Treasury owned on Saturday
$432, $50 less gold than Oh May l, 1872, $50
more silver and 1872, S7S less legal tenders,
having also drawn down its deposits in banks
by $3,115,S2S The exports were nearer those
of last year than usual and yet fell short a
little the decline Tor the past five weeks hav-
ing been per cent against an increase of If
per cent in imports during the same weeks.
With trade III such a state, and foreign sales
of stocks in this market, and gold wanted
abroad on account of probable war; there was
not reason to reckon with much confidence on
a cessation of exports. The bank reserves
again declined, and the significance of such a
movement at tue very season when reserves
should be replenished for the fall will not be
overlooked but there is still a margin OF
81 100000 in the banks, and money gives
expect soon to see.
Railroad business is rendered less satisfac-
tory by the riots, which deprive the weeks
traffic report of any significance Nor do the
exchanges az yet reflect any general change in
the character OF business perhaps it is 4 little
clearer than before that much of the recent
activity was due to speculative operations But
the large increase continues at Boston and
Philadelphia. and last week the increase in ex-
changes was large at Chicago also, in spite of
the riot, while the interior cities generally show
a gain of about q per cent above last year.
Nevertheless there is felt in wholesale trade
distinct check, which is attributed rather to
as to the results of the labor move
mcnt than to ephemeral rioting. Americana
being practical people, and having some conf
dence in their country, do not lie awake nights
much about what Anarchists may do TO over