The morning news., 1891-03-09
80 CLEWs ON FINANCE
What He Says bout Wall Street and
the Money Market

What He Says About Wall Street and
the Money Market
NEw YORK, March T.-Whils II Is said TO
Be true that ''the unexpected always hap
Pens,r il Is equally true that ths expected
often fails % happen. So it has proved In re-
spect to the general belief that the adjourn
ment Of congress woald b followed by al
/ Improvement N the stock market The
cbssrs with which the exchange on " e5nes-
day greeted the closing Of the doors Of the
capitol expressed that bOdy's estimate OF
| TIE end OF the vsIstious vrengllng by
1 which great interests have 30 long beea
! he'd in Suspense. But, az the same moment,
the attention OF the market wzs
| dents which mare than Offset any benefits
accruing from the closing Of congress.
/ FOreign exchange showed a hardening ten
| de1cy, and Il was reported taat negotis-
! tiOns we're pending with the treasury for
1 e., 000,O0 Of bar gold for export. Rumors
/ were current Of renewed financial embar-
4 rassments IN the Argentine, and OF new
/ political difficulties in other parts Of South
/ America; and q London cablegram re-
/ ported that an important firm with South
1 American connections was II difficulties,
! while rumOrs also were current affecting
] the Standing Of London bullion firm, and
! Al advance In the Bank Of England rate Of
]
/ current largeness OF our imports as CON-
/ pared with the exports was construed as
/ favOring the export Of speciA
| Such coucurrsncs of unsettlinZ circum-
| stances was mSre than sufficient 20 ne1tral-
| iZs the exhiIarating effect OF the adjourn
/ ment o; congress, and it induced 8 selling Of
stocks az the moment when q buying move
ment had been expected % set in. How
| ever. there has since been some abatement
Of these unfavOrable symptoms. The en-
/ barrasse1 South American frm has bsen
/ tided over; the Bank Of England has not ad-
| vsnced its rate and has lost only GIGS, 600
| of gold during the week: only S600, 600 OF
! gold bars has been put up for export instead
/ OF the rumored s., 900, ,OOO and the apprs-
| he1ded failures in London have not oc-
| CURED. These escapes from misfortune,
| however, have only partially suficsd TO
remedy the shock arising from the above
rumors. and perhaps for good reason. Both
in London and here there Is deep-rooted
| Impression that the Barlngs enOarrass-
msnts have produced many weak spots in
| London finance. 1t is said that those effects
| are beginning TO extend from Lom>
| bard Street TO MincnZ Lane,
and that the inevitable curtailmens
| Of banking credits 70 the South American
| trade must sooner or later cause embarass-
ments in that important branch Of British
commerce. How much real reason there
may be for this apprehension it is difficult
70 Judge at this distance; but a distrust Of
such Q nature will need at least time for its
cure, and in the meantime the LondOn
market and every interest directly dBpen-
dent upon it is likely 20 be kept in sensi-
tive state. The London Times probably re-
fleets accurately the sentiment Of the best
London opinion when it expresses the fear
THAT the stock exchange must resign itself
to long inactivity, owing 20 the shyness Of
the public In regard to certain securities. y
Such q condition Of affairs in London dis
courages the hope Of much support on this
side from that market; and, con-
sideTing how much any recovering
tendency in New York must
depend upon London taking back portion
of the large amount Of stocks il has unA
loaded upon US since last September, this is
manifestly weakening element in at least
the immediate outlook. It 10 undoubtedly
@ great gain in our relations with London
that the silver bin has been 30 completely
defeated as 70 leave little probability OF
free coinage being again agitated for long
period, If ever; and it Is not improbable that
the consequent improved status Of Amer.
ican securities may cause some Investment
demand for them among those who are get
} ting rid Ct the doubtful issues distributed
among British investors within late years
but the present condition Of affairs ct Lon
don seems to be strongly against any early
| upward speculation there in either Anerl-
can or any other securities.
| While the foreign situation is thus likely
to afford little support to New York foF
some time TO come, the market is still un
! favorabiy affected by the large decline il
the earnings Of the Chicago, Burlington anC
} Quincy and the Rock Island roads conse
quent upon the shortnsSs of the corn crop
/ which being great representative lines nat
: urally affect other stocks more or less al
a though not at all injured from like causes
L a NLaN 81 s,.s,, 70 -.
( two roads has been so long and so largely
Q discounted, they may be soon eliminated
: from the market st large and treated as ex
ceptional cases. March, however. is always
month of caution arising from anticlpa
? tion of the April settlements; and. for tht
present, discouraging influences are likely Il
D produce effects disproportlonate to theil
{ real Importance We may therefore, coun
5 upon dull, irregular market until after th'
first half Of April By that time, the mar
Q 1et Is likely to have fully discounted al
t present unfavorable conditions, ana will b.
ready to take direction determined by tkt
[ new crop prospects, which will then begiI
n to assume some distinctness- We shall ther
{ have a clear prospect of a settled abundanc,
g of money for some months ahead for tn,
| unprecedented largeness of the appropria
tions made by congress suggests the prob
4 bllity Of the treasury balance being gradual
. ly drawn down close TO the verge of ex
' haustion, without any compensating in
. crease Of revenue
: The banks have lost about 50. .270, 600 o
j. currency during the week; viz, 81, 100, ,00t
q net on the movement with the interior
e and s1,l70,000 on transactions with th
g sub-treasury; besides which is to be Teck
a oned 5000, 900 gold put up for export, max
a ing a total lost of 80, $4,000.
a For the moment the market Is likely b
]. be huctuating one, affording chances To-
s fair profits from buying upon the drop
a and selling on the upward spurts.
: GIVING AWAY GOLpBRIoK.