Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-06-28

reasonable to suppose that there may be
an unnoticed something that is preventing
people from availing themselves of profits
from prospective Improvement In the IN
cred that no more than eight months ago
Wall street was visited by a cyclone that
swept away every veStige OF speculative
margins and left many operators without
the means of recovering the wherewith to
operate, 1t does seem rather sanguine to ex-
pect that already the places of these dis
abled operators should have been refilled
buyers.
Ordinarily, the bond market is regarded as
affording good criterion of what may be
expected in the share market: and tits sound
reasoning, when we find nobody wanting
unexceptionable mortgages yielding to
per cent on their market value, to conclude
that there is q scarcity of funds seeking in
vestment: and the reasons that make money
scarce Tor investment are likely to make ~
still more so for speculation. This obstacle
to buying is the more important when, as in
the present case, it applies not only to our
own market but also to the foreign markets
that deal in our securities And it is further
to be considered that the market is still
struggling against an extra supply of stock,
which was in part sent here pending last
falls break in the foreign markets and in
part contributed by the large local realizing
on both investment ane speculative holdings
at about the same time.
''These factors are not cited as amounting
advance in prices in the comparatively
early future, but rather as largely explain
ing the past and present quiet of the market
and as suggesting reasons for moderate ex-
pectations for possibly some time to come.
1t would be a mistake to infer from them
that the promised abundant harvest, the
comparative ease in money, the relatively
strong condition of the bank reserves, and
the probable return of large amounts of
gold from Europe within the next three
months, will have no effect upon the de-
mand for stocks during the summer and fall
months. Such contributions to the national
wealth and to the operations of trade as
must come from an extraordinary harvest
cannot fail to materially augment the funds
seeking investment and to swell the floating
balances that constitute an important part
of the resources that contribute to transient
speculation. 1t is not impossible that these
reinforcements may suffice to compensate
for the loss of speculative means above re-
ferred to.
Considerable surprise is felt at the con-
tinued exports of gold though they arc on
reduced scale. 1t is inconceivable that,
after the extraordinary amount of cash liqui-
dations this country has lately made, there
can still be outstanding against us an adj
verse foreign balance. We must therefore
regard the continued shipments as due en-
tirely to special causes The principal cause
appears to be that while there is an abund-
ance of exchange being made to meet all
necessary requirements for remittances yet
a considerable portion of the bills are uE
available in consequence of the credit of the
payers having been unfayorably affected by
the prevailing financial distrust in Great
Britain and on the Continent. This causes
a scarcity of negotiable exchange, and the
result Is that We are remitting gold at a
time when the balance of our account with
the rest of the world is in our favor. While
this causes an unsettled drain upon our cash
resources, there is the satisfaction that it
correspondingly augInents the amount of
gold to be returned hither at later stage"