San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1891-09-30
THE MONEY MARKET.

Special-A surprise has come at last.
| Missouri Pacific broke nearly 10
points, and the "street" disgruntled
at this stoppage of the boom In pros
pect holds Mr.. Gould responsible A
reaction in stocks, however, was de-
sirable tor prudential as we'll as spec
| ulative reasons. After rise offs at 20
points in all the active shares, the
| danger of sudden break was immi-
| nent, and that it did not occur sooner
was simply due to the extraordinary
| character of the present market. The
test OF reaction was needed, both
| for assurance sake and to bring in
new support; so broadening the ba-
sis for further improvement. Besides,
active operators, who are important
factors in all speculative movements,
| dislike one sided market and
prefer progressive fluctuations. For
several days we have advised our
| customers to take profits, and the
| course of values fully justified this
position. We are still firm believers
in high prices; for it is as certain as
| the future can be that the present
movement is far from having spent its
force. The public are daily increas-
| ing their holdings, and there is ma
| terial in the present situation for the
most active bull market seen in years.
| Meanwhile, prudence will be neces-
sary, as in future we look for sharper
fluctuations and increased manipuls-
| tons.
The recent upward movement on
| the Stock Exchange proved irresisti-
BILE. Nothing equaling it either in
| al n
years. Based on the soundest of all
| foundations, the prOfuse generosity
| of nature and a healthy national
| prosperity, it is evidently impossible
| to seriously check the spirit of buoy
| aucy thus impaired. In the course
of time it will undoubtedly run to eX-
| cess; it will also be accompanied by
| fluctuations of varying severity; 1t
may be that in some instances the
advance is already beyond reason;
| but the one great tact remains,
that of all nations OH the earth
| we are this year most wonderfully
favored in respect TO the products of
the soil. With assured plenty at
home and scarcity abroad, the farm
| ing classes of the United States have
before them period of prosperity to
which they have long been strangers.
| Not only the railroads and business
interests generally will benefit from
large and paying crops; but in another
respect, so lar not fully appreciated,
will they receive advantage. The
farmers of the Northwest have for
years been overridden with debt; and
the discomfort thus promoted has
been at the bottom of all the injurious
currency and anti-railroad agitations.
| II the estimate that our wheat, corn
oat and cotton crops will prove worth
1000 millions Of dollars, and
| there is no reason to doubt these
| FL ures, it is safe TO assert that hun
dreds and millions Of farm mortgages
will be paid off, Ill part or full. Lend
ers have had such unpleasant eXpe'
| riences with this sort OF security that
they will be glad to regain their
| money; and borrowers will be equally
| eager to escape the heavy interest
| charges which swamped hard-earned
! savings. Contentment will succeed
discomfort amongst the farmers, and
we shall hear less of the crazy curren.
| cy and silver agitations which have
neld capital In fear and trembling the
| last few years. For the farmers al
| lance there will be no further use
| whatever; and we may also hope for
more decent treatment of railroad in
| terests from the various state legisla-
| lures. On the other hand, the capital
released from farm mortgages must
| find investment somewhere; and This,
a. already said, is a point often over
| looked in estimating the future de-
| mand for stocks. Such influences as
| as these are at the bottom of the
| present movement, and account for
| the stubbornness with which the
| public are holding fast to stocks.
| Another feature of strength is the
foreign buying of American securities;
| opinion regarding American invest
| ments is again changing in Bheir
| favor. for the obvious reason that they
afford safer and better returns than
| those of any other country, besides
| possessing a ready market at all times
| for their sale. The threatening aspect
| of European politics only serves to
| strengthen this feeling; for, while
| a sudden crisis might cause temporary
realizations, it is well understood that
| the United States would in the end
| suffer least of all nations in such
: conflict; and that, therefore, her secur-
titles would be the most desirable in
| vestment. England has usually been
| our best buyer; but French purchases
have lately been a feature, and even
the Germans are reported to be in
creasing their holdings. This means
still larger imports of gold than
would have been sent simply in pay.
ment of our grain and cotton. We
may look tor some resistance,
especially from the Bank of
England, TO our impOr ling gold;
but that the precious metal will
have to come in large SUNS is inevi-
u l. - l. Il.