The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-07-01
THE FINANCIAL Review.
The Good Things Hoped for Fail to
Put in an Appear
ance.
Money Still Scarce for Investment
and More So for Specu-
lation.
Advance In Prices Confidently Expected In
the Ncar Futurc-The Continued
Exports Of Gold.
BANKING HOUSE OF
HENRY CI.Ews Il Co.,
II IA. Tx Rroad ST. al Wall st.

BANKING HOUSE OF
HENRY CI.Ews Il Co..
II, 10. Is Broad ST., 30 Wall st.
[Special Correspondence of The INDEPENDENT
New York, June 27.-Wall street is still
in an expectant mood, but the good things
hoped for fail to put in an appearance.
THERE'S little the matter with the condition;
the main trouble appears to be in the lack
of buyers; and why they are not forthoom-
ing is not altogether an agreeable question
for contemplation. II is ordinarily taken
for granted that, when things are on all
sides conceded to be cheap and yet nobody
want them, the trouble is to be attributed
to the buyers. And In this case it is not at
all unreasonable to suppose that there may
be an unnoticed something that is prevent
ing people from availing themselves OF
profits from \ prospective Improvement In
the intrinsic value of stock. When it is
considered that, no more than eight months
ago, Wall street was visited by a cyclone
that swept away every vestige of specula-
tive margins and left many operators
without the means of recovering
the wherewith to operate, 1t
does seem rather %sanRuine to ex-
pGCV tuNU NAlCAAy IA pA0SS1 VI - NAs
bled operators should have been refilled by
a new contingent of we'll equipped buyers.
Ordinarily, the bone market is regarded as
affording a good criterion of what may be
expected in the share market; and it Is
sound reasoning, when we find nobody
wanting unexceptionable mortgages yield
ing four to five per cent. on their market
value, to conclude that there is a scarcity of
funds seeking investment; and the reasons
that make money scarce for investment are
likely to make it still more SO for specula-
ton. This obstacle to buying is the more
important when, as in the present case, it
applies not only to our own market, but
also to the foreign markets that deal in our
securities. And it is further to be consid-
cred that the market is still struggling
against an extra supply of stock which was
in part sent here pending last falls break
in the foreign markets and in part contrib
uted by tile large local realizing on both
about the same time.
These factors are not cited as amounting
to a really insurmountable obstacle to any
advance in pricesin the comparatively early
future, but as largely explaining the past
and present quiet of the market and as suR-
costing reasons for moderate expectations
for possibly some lime to come. 1t would
be a mistake to infer from them that the
promised abundant harvest, the COMPARE
tive ease in money, the relatively strong
condition of the BAN reserves, and the
probable return of large amounts of gold
from Europe within the next three months.
will have no effect upon the demand for
stocks during the summer and fall months.
Such contributions to the national wealth
and to the operations of trade as must come
from al extraordinary harvest cannot fail
to materially augment the funds seeking
investment and to swell the floating bal
ances that constitute an important part of
the that contribute to transient
speculation. 1t is not impossible that these
enforcement NAV suffice to compensate
for the loss of speculative means above re-
ferred to.
It is moreover to be considered that the
summer and fall months are almost with
out exception attended with an advance in
prices. A morning journal ~recites. facts to
show that in twelve of the last fourteen
years the prices of stocks advanced after
July LIST. The following is copied from its
statistics: I'm twelve out of the past four
teen years, prices advanced subsequent to
July LIST. In the statistics following the
average price of twenty active stocks is
taken as a standard. In 1877, between June
30 and October Is, there was ar Improve
ment of fifteen points. In 1878 the i'm
provement did not set in until August, and
extended to only four points on October
LIST. The banner year was 1879, when there
was an advance of twenty-three points
from June 80 20 November Is. In 1880 the
advance between the same dates was TWEEN
ty-two points. During August and Sep
TENDER, 1881, there was an advance Of six
points. During June. July and August,
1882 the advance was fifteen points. In
1853 the record of advances was broken. In
1884 the gain was twelve points in
July and August. In July, August, Septem-
Der, October and November, 1885, the gain
was twenty points. Between June and De-
celnber, 1885. the advance was thirteen
points. During September and October,
1887, the gain was four points. Between
june and October, 1888, the advance wal
eight points. During August and Septem-
Der, 1889, the average was advanced about
five points. The course of prices in 1890 was
downward from May |, { eliminating in the
November furry" This plainly demon
strates that there is a law in the course oil
prices which it is reasonably safe to regard
i'll making transient investments in stocks
Considerable surprise is felt at the CON
tinued exports of gold, though they are or
81 reduced scale. 1t is uncomfortable that
after the extraordinary amount of cash
liquidations this country has lately made
there can be still outstanding against us ar
adverse foreign balance. We must there
fore regard the continued shipments as due
entirely to special causes. III principa
cause appears to be that while there is al
abundance of exchange being made to NEE
all necessary requirements for remittances
yet a considerable portion of the bills are
unavailable in consequence of the credit o
the payers having been unfavorably affect
cd by the prevailing financial distrust il
Great Britain and on the continent. Thil
causes a scarcity of negotiable exchange
and the result is that we ale remitting gol,
at a time when the balance of our accom-
with the rest of the world is in our favor
While this causes an unsettling drain upol
our cash resources, there is the satisfaction
that it c~orrespondingly augments tn
amout of gold to be returned hither at
later stage.
Taking the situation as a whole, l regar
it as favorable to an ultimately highe
range of prices; but, at the same time, tn
immediate future seems to warrant nothin
beyond moderate purchases on the raid
for small profits. HENRY CLEws.
A Tale of Wonders.
Some years ago | went one day to look u
a man whom | only Euayp 20 n rottifoon;n