Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-03-22
TIME Is NECESSARY.
FINANCES HAVE NOT YET RECOVERED
FROM THE PANIC.
Wall Street Remains Dull and the Only New
Feature Is the Export Of Gold-Railroad
Situation Improving Currency Move
ments of the Week.
ESPECIAL rELnenAM TO TIE prspArcH.I


NEW YORK, March 2i.-In his weekly hnan-
cial review Henry CIews says: Affairs in Wall
street still retain the dull stagnant condition
noted in these advices for some weeks past.
The only new factor of any importance has
been the renewal of exports of gold. of which
about s. 900 has been shipped or engaged for
export during the week, with indications Of
more to follow. This has induced a temporary
selling of stocks and slight decline in prices;
but when it was ascertained that the Bank Of
England kept its rate at 8 per cent and had in.
creased its stock OF specie during the week, the
apprehension on this account abated There
was some selling on London account. perhaps
less from causes on the London market than on
the suppositlon that the exports of gold from
New York might affect prices here.
These, however, are but transient matters so
FAR as respects their bearing on prices; and
perhaps the present neglected condition of the
market is due more to causes to which little at
tentiOn is now paid than to what Is transpiring
In respect to current conditions. We seem to
have forgotten the great upheaval of six months
ago. and do not sufficiently take into account
the wide process of readjuStment that must
follow such disturbances of credit. values and
investment. Such repairs of the delicately
constructed machinery OF finance necessarily
require time. Some of the damages do not ad.
nit of permanent repair; some of the repairs
are not to be depended upon, and the men
with clear heads and deep purses prefer to wait
until the recovery has been subjected to suf-
tcent test OF lime. 1t cannot be said that the
six months that has expired is a long period to
wait for complete restoration of confidence,
especially considering how severely the finan-
cial fabric of London has been shaken:
and 1t may possibly turn out that we shall
have to wait somewhat longer for a complete
recovery of confidence and of the ability to buy
than the market is now calculating upon. To
take par allel case-the crisis of 1854 was far
less serious than that of last fall, although the
fall in prices of stocks was equal to that which
ne n OptOhar pd last
though there was an early partial recovery
from the extreme decline, as In the case of our
recent experience. there was no spirited move
ment and no decided and sustained rise in
prices until the summer OF 1885. 1t is true that
the earnings of the railroads we're exceptionally
low IN 1885, which helped to prolong the de-
preston of prices; but that unfavorable feature
was offset by a condition of the bank reserves
ranging between 81 and AZ per cent from JAN
uary to September !, the surplus on August
being S65O0O,000. The current earnings of the
railroads are relatively better than those of
1885, but nevertheless are not considered salts
factory.
While 1 am not willing to affirm that Il
months must be allowed tor recovery from the
panic of 1880 because that time was needed to
restore the markets from the breakdown of
1885. yet it does seem to be reasonable infer
ence from experience that 1t would be prema-
ture to expect any immediate large advance in
prices. The midsummer months, II attended
with good crops. would be a wiser choice for
such anticpatIons. But while 1t would be
prematuI Q 10 expect an early pronounced "bull
campaign" it Is quite within the range Of
probability that, SO soon as the April settle.
ments are out of the way. frmer and more
active condition of the market may appear and
a fair advance in prices be realized. An easy
condition OF the money market is reasonably
certain for the next four or five months; and
although the current and impending exports of
gold will reduce the bank reserves by few
millions, compensation will come from the un.
usually large disbursements of the Govern.
msnt and the new issues of silver notes. while
the transfer of our gold TO London is likely to
strengthen that market and increase the foreign
demand for American stucks.
The railroad situation also is improving, and
perhaps more so than is at present accredited |
to it. Al, hougb declines i'll earnings have been
expected, yet the increase III January |
gross earnings is followed by an increase IN |
February the increase for the two months be- |
Ing u per cent, as compared with period of |
large business. Such partial indica- |
tions as are forthcoming suggest a hope that |
the net earnings may show slight Improvement |
on those of last year, the principal exception |
having been in the case of Wabash The mani |
fest reaction of Granger and Farmers Alliance |
III the Western Legislatures is also a |
factor that should reckon for something in es- |
tinatiEg the future of the railroads. So far as
respects the winter wheat crop, such shadowy
as are at present apparent are hope
full.
The currency movement for the past week
has been decidedly against the banks of this
city. The exchanges with the interior show a
net loss of ST. $40 000, and those with the Sub
Treasury a gain OF S6lU000, leaving net loss Of |
s75O 600. This, however, does not take into ac-
count some s., coo of gold taken or engaged
for export during the week.
The following were the closing prices of the
S~rlrc olro I,x