Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-01-19
SOLD OUT AT A PROFIT.
That Is the Reason for the Present Slight
Reaction i'm Securities-Fear of Radical
Silver Legislation Is Now the Only Real
Depressing Influence.

Depressing Influence.
SPECIAL TELEGRAM TO THE oIspArcr.,
NEW YORK. Jan. lS.-Henry Clews & Co. say
in their financial review:
Naturally. after two successive weeks of i'm
portant advance in the prices of securities we
have had during the past week general down.
ward reaction. One motive for selling was that
holders prudently preferred to pocket their
handsome profits on tie rise; another, that as
the Western Railroad Association had CON-
pleted its agreements and organization, no
further advantage to prices could be expected
at present from that cause: another, that Lon
don has shown some disposition to unload
stocks upon New York ana that the Bank of
England did not further lower its rate
of discount on Thursday as was here expected;
another, that dealers usually ADVISE the realiz-
ing OF profits after q good advance; and yet
another. that the excitement attending the ter
mlnation of the Sugar Trust receivership has
subsided. The market has thus safely accom-
pished one weil-sustained upward bound; and,
allowing Tor the reactlon OF the past week.
prices have made an apparently solid recovery
of seven to eight points from the figures at the
beginning of December. The recovery has
come from no special effort at steaming-up. hut
has been the result of general recovery of
confidence and of a liberal accession of outside
orders. Such extent of recovery, within
such brief period and SO soon after the crisis,
is more than has been generally expected; and
1t has produced an impression that the late
Generalization was not SO deep rooted as
has been supposed. and that it has pro-
duced much less impairment of confidence and
OF buying ability than has been imagined to
exist In fact the market is no longer re-
sarded as feeble and MANNED one, but as
buoyant with a steady confidence and prepared
to respond readily to any influences calculated
to affect values. In fact, the market showed
more speculative interest and courage than it
did long before the panic was foreSeeu or
dreamed of. Values are regarded with all the
more confidence for having been SO severely
tested. Operators feel that there are no undis-
mir al md a lv
have been placed upon a sounder basis, and
that, according to all experience under like
circumstances, the preponderate future ten
dency OF prices must be upward excepting of
course the transient reactions with which all
rising movements are attended. To this i'm
portant extent the situation Is naturally bull
ish," and is likely TO remain preponderantly SO
for an indefinite period
AT the moment, the market is taking a
breathing spell. encouraged by the new salts
faction over "bulp' profits, but waiting for
some new reason for buying. No such reason
is Immediately in sight, except that the re-
coyery OF tone and confidence in business at
large becomes each week more distinct and
general; which is calculated to have a benefit
IN sustaining. if not in further advancing
prices. 1t becomes more and more apparent
that the crisi>, III its bearing on the general
trade OF the country, has amounted to rather
transient sympathetic shock than bona fide
earthquake, and that its indirect effects are
likely to be soon succeeded by healthier con-
hdence than existed before It's occurrence.
This is factor which has scarcely yet had its
full effect in the Stock Exchange.
The pending silver legislation rests as an
ominous cloud over the market; and even
though it is quite uncertain whether free coin
age may be adopted, the bare possibility has
produced sharp reaction in prices. The en-
actnent of free coinage would act one of
the most profound shocks to confidence in
financial circles that has for many years
emanated from Congressional legislation. But
il hy no means follows from The vote of the
Senate in its favor that free coinage, will be
legalized. AS shown in one of hy bulletins to
my customer there are many and
very uncertain steps between the vote of
the Senate and a final enactment of the meas
ure; and it may perhaps be safely stated that
the Wall street estimate of its chances are as
Two to one against the present adoption of free
coinage.