Telegram-herald., 1891-01-12
STOCKS ON THE RISE
The Late lmprovsmsnt i Looked
Upon e Permanent.
SECURITIES ARE LOOKING VI
~ uensy naskss 0revfng Dssaasaay
1nsy-Ths Arrangements Fer Co.
esealias Freight Hatss Are o.
cauSs 81 ehs ChAsga


Correspondence TO the IuYssAs HssAtp;
NEw yoRx. Jan. lo.-Tho improve
msnt Eoted in our review Of last week
has been followed BY another week OF
marked recovery. On the stock Ex-
change there has been steady rise IN
the price of securities, with but few ana
slight reactions. The "bear' element
has been less aggressive and appears 70
concede that the market affords little
inducement to attack at the current
range of values. This change seems to
be due to conviction that the weak
spots in the market have been pfobed
70 the bottom, and that the elements OF
recuperation are stronger than they
have been supposed to bean impress
SION which is strengthened by a pFomi-
nent stock house having unexpectedly
resumed payments in full during the
week. and renewed operations in the
securities upon which their embarrass-
ments arose.
1t seems reasonable TO regard the
late recovery OF prices AZ permanent,
barring temporary reactions from
shear" attacks. The rise would prob
ably halt at any further appreclable
advance. partly from realizings and
partly from "bear" influences; but we
doubt whether, IN such case, any large
reaction would occur. There is a very
decided undertone of confidence in cur
rent values, which would be likely to
bring out buyers under decline of one
to three points. And it Is not 10 be
overlooked that We are now verglng
closely toward Il very decided case in
the money market. After the first half
of January, the reserves of the banks
almost invariably suddenly rise several
millions; and, il this year proves ex-
ceptional to custom, it is likely to be in
the way OF a larger increase than usual,
for the reason tnat an excessive strin-
gency in money is always quickly fol-
lowed by an excessive ease. London
this week affords an illustration Of that
principle In the reduction of the Bank
offEnglaud's rate of discount to per
cent. The pending arrangements Tor
controlling rates Of rail freights in the
West and Southwest also constitute all
important "bull" factor. The rise in
prices of the last few days must be IN
part attributed to that influence. But
the full effect has by no means been
realized.
One great unsettling doubt over
hangs Wall-st. The silver faction in
Congress, unsatistied with the large
concessions to its demands made last
summer, now asks for everything that
could by possibility be granted--the
free coinage of silver up to the full
limit of the United States productions;
and it is by no means certain that
majority i'll Congress will not be pro-
cured for the proposal. Such law, if
allowed to run for a few years, could
hardly fail to drive gold out of the
country and put it at premium,
leaving our entire paper currency lex
cepting gold certIficates) convertible
into deprecated silver legal tender.
Opinions can differ only SIS to when
that result might come; the ultimate
consequence is inevitable. The adop-
ton of the bill therefore would be
likely to have an immediate effect
upon all long dated obligations not
made payable specifically IN gold, and
thus might make gold itself subject
anticipated. The pendancy in Con-
gress OF measure involving such
momentous possibilities cannot but act
as very important factor in both in
vestment and speculative operations;
and, if it has not already become such,
it is only because Wall-st is not yet
prepared to credit Congress with being
capable Of committing itself to such
fatal folly.
The currency movement with the IN
terror has taken very marked turn in
favor of this city. Money is flowing
hither from the East. West and even
the South. and the past weeks net
receipts of the banks of those sections
have amounted to about five millions.
The exchanges of the banks with the
sub-treasury show ~ small balance In
favor of the latter. This is conclusive
that we have reached the beginnings
OF cheap money. HENRY CLEws.
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