San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1891-08-26
FINANCIAL REVIEW.

a. Co.
New YORK, Aug. 26.-[Special. i
The spirit of Improvement in the
stock market that set in about two
weeks ago lie still maintained, though
at the moment there are some symp-
toms OF abatement A variety OF cir.
cumstances have contributed to this
change OF tone. To begin with, the
unfavorable aspects of the situation
had been considerably exaggerated
in the estimate of operators, while
the favorable ones had been held In
allegiance or their influence exhaust.
ed; and the market was thus pre-ex-
posed to sympathize with new and
hopeful influences.
At this juncture came the intelli-'
gence of even q larger crop of wheat
than the previous large estimates had
indicated, and the prospects of the
corn crop also have exhibited q steady
Improvement. The iron trade has
showed marked recovery, the COM
bined June and July product having
equalled the extraordinary figures of
last year, while the stocks on hand
have been reduced; which is favor
able indication OF recovery in our in
dustries at large. The boom in wheat
and rye consequent upon the Russian
ukase prohibiting the export of the
latter grain, while theoretically favor
able to the railroads, has awakened
the long dormant spirit of speculation
In the grain trade, the contagion of
which has readily spread to the
stock exchange. The tendency of In
formation from Great Britain and the
continent has been to dlspel the illu
sions about the supposed desperate.
condition of Trans-A tlantic finances.
At London, there is distinct i'm
provement of feeling; and although
business is quiet, conservative and
unremunerative throughout England,
yet more hopeful feeling begins to
prevail there.
A week ago, we had a surplus res-
serve of SIT SOC, 900, while at the same
time of 1890 there was q deficiency of
$3.50 600 and in 1889 surplus of only
% 1852 900; which would seem to sug-
gest that our current business with
the interior is being conducted 80 as
to avoid any undue commitments,
| with that section. The effect of this
| easier condition is apparent In the in
crease of money offered on time loans
Ior periods within six months.
Putting together these several fac
tors, il cannot be denied that they
amount to substantial improvement
in the situation; and coming as they
have, in large measure unexpected
ly, 1t is not surprising that they have
changed the temper of the. market
and stimulated speculation, even TO
the extent Of bringing out al outside
demand both speculative and for in
vestmeDt. But, on the other side, ii 3
should not be ignored that undoubt-
eddy the occasion has been seized by
parties long and heavily loaded with
unstable stocks for fostering specu-
lation and creating an opportunity
to unload. Prudent operators will
overlook the fact that there Is very
important element of weak ness in the
market In the form of the securities
of badly financed corporations and Of
railroads which have become en-
barrassed through eagerness to cover
territory which for years to come can
not yield paying return upon the
construction OUTLAWS. This Is pre-
eminently the case In the
South and In far West
and Southwest; and the case of
these properties is made worse by the
increasing hostility of the Granger
and Alliance factions to the railroad
interest. This element is calculated
to have an important influence on the
Wall street situation. At first, the
holders of such securities, among
whom are men of large resources, will
use all their influence to stimulate
the market; but at the same time
they will be sellers of their special
ties until their individual interest has
been sufficiently served, when that .
important set of supporters will dis.
appear from the arena, and L
shall be surprised if the loss of
that element does not prove a.
severe shock to the market. For this
and other reasons, I am persuaded
that lie would be unwise to assume.
that the present "bOom" is likely to-
develop into q continuous considera-
BILE further advance In prices. It
would be only common prudence to
let the market stand on further =
trial before trusting 1t confidently,
and especially as London is giving
it no support but selling out on our =
boom.