San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1891-10-14
THE MONEY MARKET.
Reported Tor the Light by Henry
Clews Il Co, Bankers.

NEW YORK, Oct. 14.-[Special.l-
The force of values upon the stock
exchange during the past week has
been In close accordance with what
was indicated in these advices three
weeks ago. The rise has been checked;
profits have been turned int cash and
recessions OF varying importance fol-
lowed. Beyond the breaks In Missou-
ri Pacific and Rock Island, there has
been no fresh cause of weakness, save
the withdrawal of London support.
Nevertheless, the market has been
dull and listless. On the one side,
there Is All almost impenetrable
bulwark of confidence in the future,
VIII ich makes every holder of stock,
large and small, obstinate i'm the
refusal to sell. The natural result is
stagnation. The market has literally
been bulled to death; and nothing
short of a shaking up of some, sort
will lift it out of present conditions.
Unless the leaders soon bestir them
selves, the opportunities tor an active
bull market during the next few
months will be materially modelled.
Leadership Is essential. and to be sue
cessful it must be of the sort that at
tracts. not repels followers. Activity
is what is needed. Everyone recog-
nizes that the rise has been sufficient
for the time being. 1t is going little
too fast to think of discountiDg the
gains of twelve months in rs many
weeks. Rest and reaction are neces-
sary to check imprudences and obtain
broader and safer views of the future.
For the last few days transaction
have been left almost entirely
to traders, who made little i'm
preston upon values. 1t is probable,
then, that present inactivity il con.
tipued will lead to somewhat lower
prices Those who have taken profits
are already anxious for q decline
which would admit of new buying
and afford the basis of further ri
later on. My opinion is thai the
activity of the market would be more
benefited in the end by q fair decline
rather than an advance; and, with
speculative forces divided as they
now are, the outlook is certainly more
favorable to fall than rise. At the
same time the exceedingly strong
under tone of the market canuot be
overlooked; and, until events shape
themselves more definitely, We may
expect a good trading market In
which quick turns are preferable to
long holding.
London appears to be somewhat
| uncertain factor, chiefly because of
Il he monetary situation there. 1t is
possible that we will have drawn from
$50, 600, 600 to SAG, 000, 600 of gold from
Europe by the close of next December.
We have already taken ABOUT S15,-
000, 900 during the season. The Bank
of England is disposed to resist this
movement in degree, and much of
the demand will fall upon Paris,
which is fortunately we'll prepared to
meet it. J. is also to be remembered
that the failure of crops in Europe
will cause there staguation of trade
and discourage speculation, thereby
lessening the, demand for money.
Political, financial and monetary af-
fairs in Europe are all in a c0mpfieat-
ed aud delicate condition. Hence, 1t
Is impossible to accurately forecast
their outcome; so that, however su-
perior the Inducements of American
securities to foreigners, il is quite
within the range of possibilities that
they may not be able to avail them
selves of such advantages as freely rs
we expect. In other words, it will
not do to count too strongly upon
foreign support in event of q further
rise. Money in London has been
quoted at and per cent for carry
ing American stocks, which caused
increased orders TO sell. That the
Bank of England did not raise the
rate of discount was probably due to
a desire to keep foreign money mar
kets free of disturbance during the
placing of the Russian loan.
The shome monetary situation is
satisfactory. This weeks bank state
ment will be made on rising averages,
and ought therefore to be q favorable
one. Owing to prudent treasury
management and expansion in the
circulation, together plentiful gold
imports and the strong position of the
associated banks, there Is little pros
pect OF extreme striugency in money.
Enough and to spare seems probable
for crop and trade requiT ements,
though the demand for the latter
quarter may subsequently become
urgeDt enough TO stiffen rates and so
affect speculation. When stocks are
active there is always an attempt to
manipulate money; but we do not
anticipate any natural stringency for
some weeks to come. Earnings con-
tinue to show handsome gains, both
net and gross; and, altogether, the
railroad future is as bright as it well
could be.