The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1891-04-12
FINANCIAL OUTLOOK
How Henry Clews Views the
Present and the Future.
The Outlook Free From Any Threatening
ConditiOns-The Coming Of Abund-
ance of Money.

We have now about reached the point
says Henry Clews, in his latest advices to
The HERALD on which common expectation
has fixed as the beginning of a recovery in
the stock market. For some time past,
the opinion has been more or less general,
that prices have not recovered from the de-
cline incident to the panic to an extent cor
responding to the intrinsic merits of many
stocks. This feeling has given stay to prices
and has kept alive "bull" element of som
force, but it has been Offset by the caution
growing out of the recent crisis, and some
thing has been constantly occurring to
| postpone operations for full recovery in
values,
The month of April has traditional
reputation for favoriug "bull" operations
1t is the time at which currency begins to
! flow from the interior banks to their New
| York agents, to rest here until the crops
have been harvested and money is needed
for marketing them. With a clear prospect
of four months of ease in money, this is
always regarded as the season most favor
able for "bulf' campaign; and it is not
clear why the present should be an ex-
ception to the rule. 1t has seemed possible
that this accumulation of money might be
checked by liberal expectation of gold;
but the present course of the foreign ex
changes discourages the expectation
In some quarters, there has been
an apprehension that the after effects of the
| financial troubles in Brazil and the Argen-
tine republic might force London to realize
upon some of it's American securities;
but, on the contrary, British investors
seem more disposed to buy than to sell our
stocks. The serious embarrassments Of
oJr love TtalI tor, rnHo
another sharp test of the EuroPean de-
rangements growing out of the Argentine
crisis, but have proved to have no serious
consequences in either London or Paris,
which has had wholesome effect
in allaying the apprehension Of further
trouble arising from that source. AS it is
now nearly six months since the suspension
Of the Barings revealed the alarming mag
nitude of the South American crisis, it
seems safe to assume that all the weak
spots in that quarter have been probed and
that London is now safe against further
disturbing consequences; which is matter
of no small consequence to the future of
American investments.
So far as respects conditions at home, the
the outlook, if not positively encouraging,
is at least free from any threatening con-
ditions. The railroad situation is improved,
if not by any general recovery of rates, yet
at least by more moderate counsels among
managers, by the absence of reckless ''cut-
, ting,n by moderate gains upon the large
gross earnings of last year, and by more
considerable attitude of state legislatures
and state commissioners in the granger
sections. Any general advance in rates is
not to be expected under the present light
forwarding of wheat and corn to the east, but
it is good symptom that, Notwithstanding
this deficiency of grain freight, rates are
= so steadily maintained. The movement oil
merchandise, however is of healthy dimen-
sions so that although the grain receipts
at the seaboard for January and February
were 10,OO0,O 900 bushels less than for the
same months of 1890, yet the general
traffic of the roads has exceeded that of a
J year ago by about 5 per cent. The ooDdi-
ton of the winter wheat crop is, for the
most part, unusually encouraging, and the
prospects are so far good for getting in the
spring crops under good conditions.
} Taking the situation as a whole, there
: fore. there is nothing in it encouraging to
selling; while the present range of prices
must be regarded as falling below a fair
valuation of stocks upon their intrinsic
1 merits With no further shocks to conf
dence to be expected from the after reflects
of the recent financial upheaval, it seems
reasonable to expect that, with the coming
abundance of money, both transient and
permanent investors will be forthcoming
| as buyers. Railroad bonds have advanced
much beyond the recovery in stock ); and
this disparity may be expected to produce
an early advance of the latter The tone
of speculation, though still conservative, is
becoming more distinctly hopeful, and the
tendency of the market is perhaps best tolC
by the caution and timidity of the 'bear'
side,