The Sunday herald and weekly national intelligencer., 1891-01-04

Although the past weeks business has been
interrupted by the holidays, it has shown a dis
tinct improvement in activity and confidence on
the Stock Exchange. 1t has been, in fact, the
only week since the middle OF October that has
shown anything like the old.iINe feeling. The
causes of this recovery have not been trivial,
nor are they likely to prove entirely transient.
The last bank statement showed an unexpected
improvement in the bank reserves, the surplus
over legal requirements being 81, 200, 900, COM
pared with $3,400,00 for the same week of last
year, S7,300,000 in 1888, and 50 100000 in 1887,
which shows fully normal condition of this
important factor in the financial situation.
These fgares indicate that at last a reaction
In the currency movement in favor Of the East
has fairly set in. Another cause of the i'm
provement is the important fact that about
$125, ,000, 900 of interest and dividends is paya-
BILE at the beginning of January. There has
also been feeling that the present. extraordi-
narly low prices, coupled with the easier con-
dition of the money market, may induce a GER
tain class of investors to devote a portion of
their January income from securities to the
purchase of stocks, as transient investment.
This immediate recovery in the tone of the
market will probably prove to be the beginning
of more important later improvement. Under
all the circumstances, it seems reasonable to
conclude that an average advance Of 8 to 10
points upon the present prices of stocks may be
realized before any question can be reasonably
raised as to their market price exceeding their
intrinsic value.
Already number of the stocks on the gen.
eral list are looking up, Gas particularly being
a strong favorite advancing from so two
weeks ago to 40s on yesterday, with none offer
ing under 403. Washington Loan and Trust
also showed strength, the bid standing strong
at Al, with small sales at better prices and none
offering under par. Beginning this week
will ffnr bo
on the basis of $100 per share.
Insurance stocks also strengthened up, Peoples
and Lincoln advancing on small sales. Riggs
about held its own, and Columbia was in good
of the general improvement, selling higher than
for several weeks past, though still longw ways
Off from the prices of year ago. Railroad
stocks, with the exception of lexington, were
OF Metropolitan, and Washington and George
town coming up steadily at but 21O. Ecking-
ton seemed to have reached Its climax at 60,
and hung at that figure, the sales being for very
small lots. Bank stocks held their own, with
advances in several of them to the amount of
the dividend, bidders appearing to be willing to
give as much for the stock without that desir-
able appendage as with it Columbia Title also
looked up and Electric Light would have
sold higher eX-dividend than with it on. Bonds
of all kinds were in good demand, though no
calls were made About the only weak spots
in the list were Chesapeake and Potomac Tele-
phone, Gas bonds, and the railroad stocks, as
mentioned.
The money market shows a growing ease, the
banks are granting all reasonable accommoda-
tions to good borrowers, while rates are becoming
normal again, and the outlook is promising for
continued Improvement.
1t may be said, however, that the patient has
been very ill, and convalescence is matter of
slow growth, and it is therefore wise to move
slowly and act cautiously about going into
debt, good balance in bank being still more
desirable than its equivalent in stocks or bonds,
even at present low prices. Singular advice,
possibly, coming from a broker who lives by
buying and selling these things, but good ad-
vice, nevertheless.
FRANK II. PELouzE. 1875 e street