The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-08-12
MORE ACTIVITY Shown.
Some Recoveries Noted in the Stock
Market During the Last
Week.
Union Pacific Without Friends
Either Hero or in European
Money Centers.
The Question Now Occupying the Atten-
ton of Speculative Interests-Con-
servative Policy Advised.

NEW York, Aug. 1.-THE last circular is
sued by the banking firm of Henry Clews d
Co. says: During the past week the stool
market showed more activity and some re-
coveries in prices; but the advances have
been mainly duo to increased sales by the
.'bears'' having created sudden demands
for covering ''shorts," while there seems te
be no Improvement in the real spirit and
tone OF the market. No sooner is one line
of .'short'' contracts l~iquidated than an.
other is put out at the consequent advance
which is evidence OF increasing determine
ton on the 'bear" side. The disposition
to sell has been increased by the notable
weakness of the Gould stocks, and espec-
tally of Union Pacific, which seems to have
no friends either here or in Europe: and if
Mr.. Gould is not an active "bear," he is at
least counted, in street opinion, as a pass
i've one, which for practical purposes, is
reckoned a. being almost the same thing,
a. it leads others to sell with all the more
assurance.
All the symptoms indicate that it is hope
less to expect any extravaganza buying
spirit until there are stronger indications
of a removal of the prevailing distrust than
at present exist. The booming tendency of
good crops is now little heard of, for the
reason that there are SO many serious OBJ
stacles to that factor having the effect upon
prices that would attend it under normal
conditions. How much of our grain can
Europe take? What prices will Europe pay
for our wheat? In what form will it pay
for tin gold, in goods, in returned secur-
:4s,r - AVA, %br,,,rb hoprcripc il, fha
United States? If the payment is not
made to a liberal extent in gold, what will
be the resources of our banks for meeting
the western fall drain of currency? And
if securities should be returned to even but
. moderate extent, what would be the
ability of our market to receive them?
And, again, how far will the present I'M
settled condition of European finances tend
to embarrass the fnancial and commercial
markets under the extraordinary importa-
tions OF American grain that will have to
be made?
These are the kind of questions that are
now occupying the attention of the apecu-
latlye interests. Every one of them has a
direct and vital bearing upon the value of
securities; III yet it is impossible to form
a satisfactory Judgment about the probable
outcome of any II of the problems. A
general feeling Of uncertainty is the re-
suit; and the uncertainty is even more de-
moralizing than a clearly understood &C
tual catastrope. 1t paralyzes enterprise,
causes a general taking-in of sail, con-
tracts credit, discourages buying and en-
courages selling, and produces a shock of
general apprehension. No doubt. the cur
rent adverse probabilities or possibilities
are exaggerated in the public mind; but
TINT is a consideration of little practical
value: for in dubious situation it is but
human nature to discount and to prepare
for the worst that may happen. and prudent
men are always found willing to make a
sacrifice in order to escape possible disas-
ter. While, therefore, it may be conceded
that fear is now exaggerating moro or less
the gravity of come aspects of the foreign
situation, yet that fact caunot be expected
to prevent a great deal of realizing on
to avert a consequent decline in prices.
The resumption of the silver agitation is
also calculated to encourage this distrust
and is actually amounting to a pretty stub
boon ''bear'' factor. The apprehension on
this account, however, is perhaps more due
to the seriousness OF the view taken of the
situation that would arise should a. free
to any positive expectation that such a
measure will really find a place in our stat
utes. Politics, however, are in an abnor-
mally confused condition. Parties are
willing to buy success through almost any
concessions to popular clamor; and low
ever %repuenant free coinage may be to the
common sense and the moral sense of a
majority of our people, it is not impossible
that the fundamental principles of n sound
currency may be sacrificed to win a small
minority of misguided voters. There is
therefore uncertainty about the final out
come of the silver agitation; but q small
degree of uncertainty about a matter so
vital to investments and to the general vel
fare of the country is quite sufficient to de-
press the stock market.
These tainties have their natural
effect upon the banks and upon lenders
generally. The reasons that are inducing
European banks to accumulate cash and
hold to it tenaciously are causing our own
banks to keep their loanable resources
within easy reach, They will lend on call
to any extent and at almost any rates; but
time loans can be procured only with the
utmost difficulty and upon a class of col
~laterals that are very scarce. 1t is true that
the last bank statement showed an amount
of surplus reserve 11S per cent. higher thar
that of the same date in 1890 and 1889; but
it is also true that the west will have q
wholly unprecedented surplus of wheat to
send east. which places us in a condition Of
very delicate dependence on the problemat-
ical disposition of Europe to exchange it's
gold for our grain, Under these circum-