Evening star. [volume] (Washington, D.C.) 1854-1972, 1891-08-15

Henry Clews in his Weekly Financial ReuieD
issued today says: ''In my last weeks survey
Of the influences affecting the stock market,
gave special prominence to Q set Of factors
which might be construed favorable to the SELL
ing OF certain securities. At that time those
tention OF operators that it appeared probable
that they might produce at least a
temporary decline; and, with that view,
l suggested selling special stocks rather than
buying, At the same time, however, the mar
ket had another side and another set OF infiu-
ences, which though, for the time being, dor
mant and uninfuential, were yet plainly des-
tined to have q favorable influence upon prices
sooner or later; and as the market OF the past
two weeks seems to have been in some measure
moved by those considerations it may be proper
TO make due reference to them.
The wheat crop now promises TO surpass
both in quantity and quality the earlier esti-
mates. $50 600 200 to CO., 000, 900 bushels being
now regarded as not an impossible yield. The
special Importance attached to this
an export crop this unprecedented sup
ply OF it gives US the greater power
for controlling the return Of the abnormal ex-
ports of gold for the last eight months. II Eu-
rope should need double the average supply Of
American wheat Of the last ten years we shall
be in position to send it. This fact cannot
reasonably be denied favorable allowance in
estimating the probabilities Of rehux of gold
to the United States.
1T is quite possible that unfavorable
features in the condition Of European finances
and commerce have been exaggerated in the
common estimate. 1t always happens, after q
panic, that fear and apprehension unduly
sway the public mind and make tie sfter-effects
more serious than they might or need be.
But 1t is well 10 remember that two panics
never come in immediate succession. lmm-
dlately after the crash recovery sets in, and
though 1t may proceed slowly and amid umid-
ity and caution on every side yet the process is
one of sure improvement.
1T seems proper to add a word as to the
prospects OF our home money. We have now
week or two later than usual-rcached the
turning point in the domestic exchanges, and
money has begun to flow westward. Although
the amount OF the reserves OF the New York
banks is double what It was at the same time
last year, yet that may not prevent
our local cash resources being
drawn down to point threatening
stringency. That is a matter, however, that
can only be determined by experience. 1t is
not to be overlooked in this connection that the
active circulation Of the country has increased
some seventy millions during the last twelve
months, which, in the absence Of any increase
in the trade Of the country, should pass for an
element Of some importance in estimating the
prospects of the money market.
"Having stated some Of the favorable factors
which lack Of space excluded from our last
weeks review, would nevertheless repeat the
opinion then expressed-that the 'bearish' ele-
ment does not seem to have fully exhausted
itself; hence the point does not appear to have
yet been reached at which II is sale to load up
heavily with stocks, except for brief turns and
the buying should be confined to periods when
slumps are produced by the active traders"