Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-05-17
WALL STREETS BUDGET.

bbls.
WALL STREETS BUDGET.
Yesterdays BUSINESS AND SPECU-
| LATIONs OF OPERATORS.
Share Market Opens Active and Weak on
| Expectation of a Poor Bank Statement
The Statement Is q Surprise and Sharp
Rally Takes Place.
New YORK, May 16.-The stock market to-
day was active, and while weak at first,
rallied sharply, nearly recovering the early
losses and bringing prices up close to those
OF last evening. The general expectation,
In view of the extraordinary heavy ship
ments of gold for the last two weeks, was
that the bank statement would show seri-
| GUS decrease in the reserves, if not a COM
plete loss of the reserves. There was, there
fore, vigorous effort to sell all the stocks
which the market would take in the early
trading, and although there was undoubted-
ly good support given many of the leading
shares, the effect was to make an extremely
feverish and withal weak market.
The support was apparently wtthdrawn
toward IL o'clock and the pressure to sell
became more urgent, so that sharp decline
all along the line brought prices down from
to per cent from last evenings figures,
and the lowest prices of the week were
| reached. In the downward movement,
Manhattan, Chicago Gas, Louisville and
Nashville, Pacific Mail, Union Pacific and
Rock Island we're specially prominent.
The Turning Point Is Reached.
The strongest spot in the list was the
Northern Pacifics. They were helped by the
cable advices from Berlin, which gave inter-
views with some influential officers of the
peutsche Bank, in which they expressed
great friendship for Mr.. Willard and depre-
| Gated the recent stories of break between
that gentleman and the bank. The bank
statement, however, when it appeared,
showed small increase in the reserves in
stead of the loss expected, and there was a
rush to buy, greater, even, than the previous
pressure pr e.1 to sell, and prices rallied very
Sharply, recovering, in the 15 minutes left to
do business, almost all the losses Of the
morning.
There was most excellent buying of the
Northern Pacifics, Missouri Pacific, the
wheeling and Lake ErieS, Rock Island and
Union Pacific, but the entire list shared in
the Improvement, which was material in all
portions. The market closed active and
strong at the recovery. The final changes
are generally small fractional losses, but the
Northern Pacifics are higher, and Louisville
and Nashville is down 13s and Pacific Mail
per cent
Railroad bonds were quiet and followed
closely the movements in the share list,
De1ng weak in the early dealings but stiffen-
ing up later. The final changes are, as usual,
insufficient among the active issues, but
seattle Lake Shore firsts lost 81, at 9S.
What Henry Clews Says.
Henry Clews, in his weekly letter, says:
The marked intrinsic buoyancy of the stock
market continues to be held in check by the
large special exports of specie. and hence it
becomes important to understand the causes
and the probable duration Of the gold out
how and the bearing it should legitimately
have upon confidence and the course of the
local money market. Primarily, the exports
seem to have risen from the urgencies of
Russian finance. The consequent large and
sudden drain upon the European stocks of
gold, coming close upon the deep disturbance
of confidence arising from the financial COM
plications in South America, has caused
Continental banks to recoup themselves for
the loss by getting gold from every possible
source; and naturally the drain has been
especially directed toward the United
States. The panic in Lisbon, the uneasiness
at Madrid and the alarm in Paris during the
past week, are Illustrations of the way in
which these causes are acting upon European
banking interests The trouble in those
cities, however, seems to have been adjust
ed, and that fact has partially restored con-
1dence. Nevertheless, the situation is
shrouded in uncertainty.
While this uncertainty prevails, we must |
stand exposed to continuance of the de- |
mand on New York for gold and THURSDAYS |
significant advance Of the Bank of Eng |
lands rate of discount from to per cent |
was no doubt made with that end In view. |
1t is not easy to determine what may be the |
present ability of Europe to draw upon this |
country. The recent large exports of gold |
have been due not only to our heavy ma
turing obligations on account of special i'm |
portations made in anticipation Of the oper.
alton Of the new tariff duties, but also to the |
remittance of foreign banking balances |
resting here for employment. How far the
latter resource against cash remittances
may have been already diminished, it is i'm
possible to estimate; but even had it been
exhausted (which is not supposable), there
would still remain ways in which Europe
could get gold from us through borrowing
here, were the pressure urgent enough to
justify the cost of such operations.
On one point we may quite safely be conf.
dent-that in spite of the shallow prophecies
about the loss of gold threatening serious
danger from the operation of the new silver
act, neither the gold already exported nor
any further early amounts that may possi-
serious Inconvenience than q temporary
in the local money market. It
does not seem to be sufficiently appreciated
that, within recent years, a very important
change has occurred in the distribution Of
gold, so far as respects the United States.
made a net export OF. s5s5, ,ooo, 900 of gold; 2
while during the period of 1878 to 1890 we
made net import Of $50 ,OO0 there hav-
Ing been only three years within the last l3
during which the export of that metal has
exceeded the import. With such a large and
progressive accumulation of this metal, it
surely cannot be such an alarming circum-
stance that we have exported some 1872, 100000
since the beginning of April, and especially
when there is such a clear prospect that the
next harvest will put us so largely in cred
tor relation to Europe as to bring back to us
large portion OF the cash remittances we
we shipped over $s,0OO0 900 gold,
making total Of over $4l ,00O, 900 since Jan.
laryl.
Nevertheless while there is no danger of
If any permanent depletion of our stock of
gold, it Is not impossible that further early
shipments may so far deplete the reserves Of
'he banks as to impose more or less check
lpon speculative transactions, and for that
'eason / suggest to our friends conserva.
i've course in respect to all such operations
md the postponement Of buying until the
European prospect is clearer. In the mean
ime the harvest prospects and the current |
rood earnings of the railroads are improving
he intrinsic value of stocks, insuring an
4ctive market when these financial clouds
lave been dispelled.
What Oakley & Co. Received.
John M. Oakley & Co.'s Wall street wire
'rought the following yesterday: Wall street
lad genuine surprise party this morning
n the bank statement, which either
'aralyzed or amused everybody. There are