Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-04-12
A SPRING Squirt.
Henry Clews Thinks the Wall Street Out
look Is Brighter-Why Speculative Sc
curities Should Improve-signs That
Should Bring Coufidence.

Henry Clews Thinks the Wall Street Out
look Is Brighter-Why Speculative Sc
curities Should Improve-Signs That
Should Bring Confidence.
ESPECIAL TELEGRAM TO THE prsPATcH.1
NEW YORK, April 11.-Hanry Clews, in his
Wall Street Circular, says: During the past
week, Wall street has sprung into new life and
activity. The beginning of April has been ex-
pected to bring an improvement in the stock
market; but the degree of recovery has ex-
ceeded anticipations. The volume of transac-
tions has more than doubled, and prices have
advanced almost through the entire list; but
the best symptom connected with the revival is
that it has come not so much from mere room"
influences as from an important accession OF
outside buying orders. The stimulus is not of
the artificial kind that is sometimes manufac-
tured by professional traders or capitalists as
sociated with large corporations; it is mainly
due TO Simultaneous and natural demand
coming from the public at large, and alike for
transient and permanent investmenE
This welcome change is due to several causes.
1t is the first clear and decided evidence that
pu bllc confidence has recovered from the shock
impaired by the crisis of last fall. And in that
sense it means what many have suspected, that
the damage inflicted by the panic was due more
to fright than to positive injury or widespread
disaster. The mischief was more in the nature
of arrangement of the machinery of finance
d
large or any such extensive insolvency as the
Barings' suspension revealed among the Euro
pean credit establishments associated with
South American interests. The whole trouble
lay in a comparatively temporary over-creatIon
of railroad issues and violent hitch in our cur
rency arrangements, while the general trade of
the country was in a sound and wholesome
condition. Careful observers have all along
felt that, when the public at large came to
understand these actual limitations of the bear
inss of the crisis. there would be prompt and
effective recovery Of confidence and general
return to normal conditions. All symptoms
unite to Indicate that we have now reached that
turning point
The danger of monetary stringency has been
greatly mitigated; for. on the one hand. the
largely increased disbursements of the Govern
ment will necessitate distribution of the i'm
mense cash balance hitherto held by the Treas
ury and, on the other, the operation of the
silver law will add $50, 0,00O, 600 per year to the
active circulation, in addition to the increase
arising from our regular production of gold 1t
Is also factor of no small Importance that. In
the Western States generally, the Granger
hostility to the railroads shows a marked abate-
ment of its reckless hostility, and in almost
every case bills of that character have been
defeated. A still more direct stimulant comes
from the hopeful agricultural prospects. The
winter wheat crop is unusually promising while
the weather is favorable to the getting in OF
the Spring crops; and the fact that the outlook
for the European wheat crop is discouraging
suggests the probability OF a good year for the
American farmer.
While the concurrence of the foregoing IA
vorable conditions is calculated to develop
much more confident feeling as to the future
of business, it is beyond question that the cur
rent market value of securities Is much below
the average. 1t is true that the present gross
earnings of the railroads show but moderate
gains on those of last year; yet it is to be re-
membered that the traffic of 1870 was unusually
large. 1t argues well for the general trade of
the country that in spite of the decrease in last
years wheat and corn crops, the earnings
should show any increase whatever on those of
1890. 1t seems therefore to be reasonable
assumption that the current business of the
roads would warrant about an average range of
prices for railroad securities: and yet their
present value falls very much below the aver.
age.
In view Of the factors above reviewed. there
appears to be solid basis for an appreciation
in the value of securities from this time for
ward; and the probabilities of tile situation
favor a steady buying movement extending up
to the fall months; especially should the crop
prospects continue to develop as satisfactorily
as hitherto.