Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-05-06
FAVORABLE CONDITIONS.
THE REACTION STRENGTHENED
THE SITUATION.
'That Trade is Dull is Argument
Against StOcss"-Railroad Earnings
Display Satisfactory Gains.

New YORK, May Favorable conditions
still predominant in the stock market.
Prices have risen fairly, and the reactions
which accompanied the advance simply
served to strengthen the situation by en-
couraging new buying and giving the mar
ket more substantial basis. The outside
interest is now larger than seen for many Il
day, and shows confidence which the at
tackS of traders and professionals We're IN
able to weaken. There is no question
about present conditions justifying the
higher range of values. As already
shown in these advices, the crop situation
is strongly in our favor; and the effect OF
full crops here, with a shortage abroad. is
now beginning to be appreciated. ThGs
general trade is dull is no argument against
SstockS, for experience shows that activity
in both is rarely coincident. When bust
ness is on the rush merchants find more lu-
crltive employment for their funds than in
Wall street. In the coal and iron trades.
however, there is an improved tone, and
this necessarily strengthens confidence in
tSaS1Dgs of stocks. The aVerting of the
threatened miners strike for eight hours is
also reaSSuring, as 1t indicates Il more tenn
perate policy on the part of labor leaders.
For the last three or four years the whole
country has been thrown into a state OF
apprehensiveness about May 1, by immense
labor demonstrations, but the condition of
the coal trade was unfavorable to the de-
mands made this year, and the leaders
showed their wisdom in waiting for better
opportunity. Railroad earnings display
very salts factory gains, considering the
heavy totals of last year, with which they
are compared; and several important sys-
tens are expected to make better net COM
parsons in future. owing to reduction in
expenses for betterments. London has
again become a purchaser of American
stocks, and the continuance of the Bank of
England rate at 81 per cent, in spite of ex-
pectations to the contrary, had stimulating
effect upon this market. Gold shipments
continue over 81 600, 600 having been ship
ped this week, but the foreign demand for.
stocks serves to somewhat counteract this
movement. Thursdays meeting OF railroad
managers was entirely satisfactory an
harmonious. Under tn csc circumstances [
am inclined to the belief in well-sustained
prices. At the same time, values have
already experienced considerable advance.
and realizing movements are to be expected
The market is still very susceptible to IN
favorable influences. so that buying must
be conducted with prudence, and on all good
rallies it is advisable to secure profits
a good deal of foolish talk about the fut-
ure of the money market has been excited
by probable demands upon the treasury re-
sulting from the extraordinary appropria-
tons of the last congress. Attention to the
matter was emphasized by Secretary Fos-
ter's action in disseminating the purchase
of ~ per cent bonds for the avowed pur-
pose Of ''reserving the residue of the ~
per cent loan for adjustment within the ifs
cal year which begins on the LIST day of
July next" This action on his part was
simply precautionary measure, and one
to be emphatically Endorsed. III the present
of the money market, there is no
occasion whatever for the treasury buying
bonds to satisfy currency demands During
the next fiscal year sinking fund require
ments will call for about forty million dol
lars, and it is certainly prudent on the part
of the secretary to strengthen hiS-resources
against future demands at a time when, like
the present, such action will be least felt.
Moreover, there are about SOL 900. 900
Of these ~ per cent bonds outstand-
ing, of which over twenty-four million dol
lars are held by national banks as basis
for circulation, and a number of prominent
bank officials have taken particular pains to
impress the secretary with the advantage
Of extending these bonds, temporarily
at least, at per cent; thus
saving the banks the net ,ssity