Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-11-24
CIewS on Stocks,

CIews on Stocks.
New YORK, Nov. 21.-During the greater
part of the past week Wall street relapsed
into its old stagnancy, the partial revival of
the previous week having proved to be but
a transient room" ripple upon the dead
calm of speculation. Neither the unexpect-
edly liberal gain in the bank reserves. nor
the equally unexpected strength shown in
the Bank of England's statement of last
week, nor the gain of So per cent in the
October gross earnings of the railroads,
have had any important effect upon the
market, and the transactions at the stock
exchange shrunk to about one-third the
volume of really active business. There
has been a fair investors demand for bonds
and first-class dividend-paying stocks,
which indicates that, whatever may be said
about the state OF the country at large the
accumulation of wealth is going on at about
ItAe usual rate.
Sfhis condition of the market seems singu-
larry inconsistent with the large hopes
lcgitimately based upon the commercial
stimulus that must attend the distribution
of our extraordinary crops and the eXporta-
tion of probably an unprecedented quantity
of food products. The insensibility of the
stock market to these inspiring prospects is
no doubt due, in some measure, to a Quieter
condition Of the general trade of the coun-
}
cumstances of prosperous year for the
farmers. The measure of this quiet may
be inferred from the fact that the current
, bank clearings, at the seven principal cities
of the Union. show a decrease of over 10
per cent as compared with year ago. To
account for this disappointing state of
things, it is necessary to remember that it
is only twelve months since we were in a
condition of financial panic, which has been
followed by reaction affecting business
and values throughout the entire country
= transition from panic to high boom
within such brief period is too much for
prudent men to calculate upon.
The chief cause of the prevailing inactiv-
ity, however, is to be found in the Europe
an markets. AT present the financial CEN
tiers of the continent are exposed to a very
serious extent of sympathy with variety
of unhealthy influences, most of which have
been long in operation and seom TO be now
reaching elimination. There, as in this
country, there has been great deal of rev.
olution in the organization of industry,
which has resulted in the formation of
large corporations, for the most part
foated on an inflated capitalization and IL
nanced on loose speculative methods. The
bourSes are glutted with these unstable is
sues, and IN too many cases the banks even
are dangerously loaded up with them and
yet dare not force them to sale. Again, the
tween the European states has been increas-
ing in severity, with profitless results and
with consequent inducements to some of
the commercial banks that expose them to
distrust. Further, the Barring suspension
and Soute American affairs generally. have
started an industrial and commercial reac-
tion throughout Europe, which is attended
with declining prices, and with the obstruc-
tons to credit that always attend such
state of things. These evils are aggravated
by failure OF the crops that threatens to
deplete Europe of the gold so greatly
needed to buttress the banks under such
adverse conditions. Added to all this,
there is a condition of International
relations which threatens to precipitate the
great conflict between the Eastern and
Western powers, which has been SO long
impending and has each succeeding year
seemed to become more inevitable. The
crop failures of France and Russia increase
this danger, as they afford a tempting op
portunity for the driebund to force the
weary disputes to settlement. More
over, judging from seemingly authentic
outgivings, Germany IS preparing herself
for serious action in the coming spring;
although 1t is possible those intimatiOns
may be intended for diplomatic effect rather
than to reflect actual purposes.
This is the complication of influences now
agitating the European money centers
an unusually grave one, calling for the ut
most conservatism. calmress and taking-in
of sail throughout Europe. Naturally,
under such circumstances, there is an effort
to realize upon large amounts of the Sc
curities of the governments most directly
involved in these dubious prospects. For
the last two or three weeks, both Paris and
Berlin have been selling largely OF Russian
issues, the amount of which held in France
is estimated at $500, coo, 900 and in Germany
at l.500, 000,00O The bankrupt condition
of Spanish finances is also an element of
danger. The Bank Of Spain has exceeded
the legal limit of its note issues and pro-
poses to further disregard its constitutional
restraints; and while confessing its inability
to pay temporary loan from the Roths-
childs of S10.000,000 is asking for further
advance of SI5,000.000. And yet France is
estimated to be holding some $500 OOO, OOO of
Spanish securities of one kind or another.
Italy has been severely hurt by its recent
panic. and confidence cannot yet be said to
be returning in Rome. At Vienna the state
of finances is one of high tension: and
nothing is being accomplished towards
restoring confidence in Portugal
This is an unvarniShed statement of the
present condition of finances in Europe at
large. with possible super-added great
war within SIX months. A graver situation
could hardly be conceived. aud he would be
a bold financier who would say that these
influences can have no bearin g upon the fu-
ture of American securities In nv judg-
meut, so long as this state of things con-
tinues, an eye had better be kept to the
windward and conservative methods should
prevail. Still as the feeling in London is at
present showing some improvements and
the Bank of England is showing some gain
in its reserves, our market for securities is
entitled to some recovery in prices and in