Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-10-28
hardly be construed otherwise than as an

hardly be construed otherwise than as an
omlnouS symptom.
The shrinkage of transactions on the ex-
change to less than one-haif their late vol
ume plainly means that an important class
of large holders have sold out and that they
are not at present disposed to enter the
market again at the current range of val
ues. Hence, such 4 condition of present
holdings usually results in either reaction
Of prices, or a prolonged stagnancy, during
ISEhich comparatively weak holders have to
Keep up forlorn struggle against the
''bears.' Numerous holders are apt to be
not only of the ebler class, but also include
the least practiced and influential; and that
is very much the case in the present situa-
ton of the market. The capitalist class
who were caught in the crisis last fall with
heavy loads of second and third rate stocks
have succeeded in transferring them to
transient speculative buyers land the former
class of operators. always so essential to 4
Il successful ''bull'' movement, are now out
of the market, and their tactics are likely
to favor the bear side until prices are.
more tempting than at present. These men
are as the wind to the sail, the steam to the
locomotive, the money that ''makes the
Z Mare go;'' and Il market without them has,
usually, a very unpromising prospect.
The present holders of stocks are, it is
true, helped by the greater ease in money.
by the general recovery of confidence, by
the influx of foreign gold, and by all the
good influences that attend such an ex-
traordinary harvest as has befallen rs; and
this may enable them to hold on and per-
haps to secure occasional sight advances;
but without the cooperation of the great
professional bulls they can make little
progress. and have the choice between a jul
diciOuS yielding and Z protracted dizziness
and stagnancy that can be ended only by
compulsory realizing. There cannot be a
good market without good buying and there
cannot be good buying without good buyers,
neither of which of sufficient magnitude
exist at present. There are plenty of infiu-
entail operators who although they believe
in ultimately higher prices, vet think it
better to allow the market to rest for Il
time; and they are likely to continue to
postpone operations until they can get in on
better terms than exist at present. In
brief, the market is in the unsatisfactory
condition Of being strong enough 10 support
prices. and vet not attractive enough to IN
duCe important strong buying. The issue
of such a situation is usually prOtracteds
and unbroken dullness, which continues uu-
til holders are wearied out or driven from
the market; and there is too much reason
to fear that the present situation may
into just such Il profitless condition. Tn
der such circumstances, 1t seems the W.
policy for holders TO let go part of their
stocks and stand prepared for getting into
4 fresh campaign, starting from a lower
basis of prices and having the support of
class who alone can make boom success
full.
But while the personnel and the makeup
of the market are not conducive TO progress
but are calculated to invite periodical
bear attacks the chief current factors
affecting the intrinsic value of securities
are distinctly favorable The foreign de-
mand for our wheat continues upon a large
scale, and the yield III the price of that
cereal is calculated to stimulate its export,
The return Of gold from Europe shows no
symptom of Abatement; and at London the
loss of gold has SO far produced no effect
upon the Bank of England rate, nor upon
the rate III the open market, while in the
stock market the preference for American
securities is causing a steady stream of
buyiug orders to be cabled to New York.
This is certainly better condition OF for
eiru finances than has been anticipated
The uueaSness caused by the new Russian
loan and by reports of fresh trouble in the
Argentine Republic seem to have the effect
of stimulating the London demand for our
Investments. So far rs respects our local
money market, the imports of gold and the
moderation of the shipments OF currency to
the interior leave no doubt that, for the re-
mainder of the year and probably till early
next spring there will be no difficulty in
procuring money for stock exchange pur-
poses. This prospective ease in the loan
market is causing a marked improvement
in the demand for railroad bonds, which is
4 factor Of real importance TO stocks. The
late reports of damage 10 cotton are now
followed by intelligence of killing frost in
the cotton belt, the immediate effect of
which is to cause an advance in price both
here and in Liverpool. There can be little
doubt that considerable deductions will
have to be made from the earlier estimates
of this crop: but as the price will probably
be cores ondingly advanced the financial
results of the yield are not likely to be ma
terially affected. 1t is unfortunate that, with
SO many elements in the situation, the I'M
due forcing up of prices during the late
boom should have put the stock market in
position which prevents an adequate re-
spouse to those factors. HENRY CLEwS.