Telegram-herald., 1891-03-23

In ais weekly financial review Henry
Clsws asserts that wall-st. still retains
lts dull, stagnan. condition. and then
Gays: The only factor of any import
snee has been the renewal or exports
Of gold, OF which about $1,000, 900 has
been shipped or engaged for export
during the week with indications OF
more 10 follow. This has induced u
temporary selling OF stocks and slight
decline IN prices; but when It was as
certained that the Bank of England
kept rs rate at 5 per cent, and had
increased It's stock OF specie during the
week, the apprehension on this account
abated.
These. however, are but transient
matters so far as respects their bearing
on prices We seem to have forgotten
the great upheaval of SIX months ago.
and do not sufficiently take into ac-
count the wide process of readjustment
that must follow such disturbances of
credit, values and investment. Such
repairs of the dehcately constructed
machinery of finance necessarily re-
aulre time. Some OF the damages do
not admit of permanent repair; some
OF the repairs are not TO be depended
upon; and the men with clear heads
aud deep purses prefer to wait until
the recovery has been subjected to suf-
ficlent test OF time. 1t cannot be said
that the sixth months that has ex-
pred IS long period to wait for CON-
plete restoration of confidence, especi-
ally considering how severely the tinan-
clal fabric of London has been shaken;
and it may possibly turn out we shall
have TO wait somewhat longer for
complete recovery of confidence and of
the ability to buy than the market is
now calculating upon To take par
allel case;-the crisis OF 1884 was far
less serious than that of last fall, al
though the fall in the prices of stocks
was equal To that which occurred in
October and November last. Yet,
though there was an early partial re-
covery from the extreme decline, as in
the case of our recent experience, there
was no spirited movement and no de-
cided and sustained rise IN prices until
the summer of 1885.
These comparisons are cited not as
exhibiting . course of affairs that mus.
certainly be repeated during the next
few months, but rather As indicating
that toe complete discovery of prices
from great depressions does not come
quite so quickly as some have been ex-
pecting IN the case of the late crisis.
Moderate expectations are always the
safest; and while am not willing to
affirm that twelve months must be al
lowed for recovery from the panic of
1890 because that time was needed to
restore the markets Nom the break
down of 1885. yet it does seem to be
reasonable inference from experience
that il would be premature to expect
any immediate large advance in prices
The midsummer months, if attended
with good crops. would be wiser choice
for such anticipatons. But while it
would be premature to expect an early
pronounced dull campaign, 1t is quite
within the range OF probability that, so
soon as the April settlements are out of
the way, = firmer and more active con-
dition Of the market may appear and a
fair advance in prices be realized. An
easy condition of the money market is
reasonably certain for the next four or
five months; AMI although the current
and impending exports of gold will re-
d1ce the bank reserves by few mil
lions, compensation will come from the
unusually large disbursements of the
government and the new issues of silver
notes. while the transfer of our gold TO
London IS likely to strengthen that mar
ket and increase the foreign demand
for American stocks.