Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-11-12
Clews on Stocks.

State bonds have been dull and feature
| less.
| Clews on Stocks.
New YORK, Nov. THE course Of bust
| ness at the stock exchange for the past
| week calls for little comment beyond not
| ing that 1t has been on q par. as respects
| duilness and stagnancy, with the several
| weeks next preceding. AT one end of the rope
have been the room bears and at the other
| the room bulls; and their mutual Juggling
| has shown only gains for the down side.
while the ordinary outside operators, great
| and small have, istlesSly watched the per-
| Torrance. Something of the dullness may
| be attributed 10 the election excitement
| aud TO the holiday attending it,: but it
! would be difficult to make the market more
! lifeless than it has been of late.
| Last weeks advance in the Bank of Eng
| land rate and the recent report that Russia
| had prohibited the export of all cereals
have had no perceptible effect. The latter
! rumor would have been important if
| true" but it has received neither coufirma-
| ton or denial. and may therefore be re-
| garded as having been based upon astici-
| patton. The advance of the Bank of Eng
! land rate appears to have stifened the
| money rate on the continental bourses, and
as that measure was doubtless intended to
| divert the westward drain of gold from
| London TO the European centers, it may be
| expected that the German reichsbapk and
| possibly even the Bank of France will soon
| follow the example of the Bank of England
| as measure of defense,~in which case the
| latter institution may find 1t necessary to
| further advance its rate at no distant day
| London finance is subjected to new and
| by no means insignificant strain by the out
| break of what appears to be serious form
of revolution in Brazil. The suspension o
congress, the declaration of martial law.
| and the creation of a dictatorship mean
roy n q c,,J -I.,,
| ports represent this state of things as being
| by no means confined to Rio but general
! throughout the country. This is another
| great South American disaster added to the
| arrangements still remaining from the Ar
| geutine collapse of year ago. all OF which
| Is calculated to affect unfavorably a wide
range of securities held in Europe.
| To this must be added the dis
turbance Of bank reserves in Western
| Europe likely to arise from the remittance
| to Russia Of the proceeds of the recent loan
negotiated in Paris. Much of that money
would, under ordinary circumstances, have
| remained on the continent TO be drawn
| against for Russian disbursements outside
| the cars territority; but the distress and
| the financial exigency arising from the crop
failure are calculated TO create q use at
home for much of the proceeds of the loan
that would have been otherwise used. I'm
der these circumstances, the great banks of
Europe are likely to clutch their gold with
special tenacity,-a condition of things any
thing but conclusive to confidence In Sc
curities and especially those of a specu-
lative class. So far, these facts and pros
poets have had no effect upon American Sc
curities in the foreign markets. On the
contrary q special preference is shown for
them, on account Of their being more than
any other investments outside the sphere of
these influences. So far, this exemption is
very gratifying: but ii must be remembered
b1+ in no nf any in
the European markets, our securities
would be especially liable to be Sold from
the fact that they could be realized upon
with less loss than in the case of most
others At the moment, however, Ameri-
cans rank among the strongest investments
in Europe, and, for much of the time, are
firmer than at New York. Taking the for
eigu situation as a whole, however, it is
more suggestive of trouble than of support
to this market; and this is a factor which
encourages the hesitancy now evident
among our leading operators.
Among the domestic factors which are at
the moment acting unfavorably on the mar
ket, are the comparatively numerous new
issues of bonds for improvement purposes
and for equipment; which while their OBJ
ject may be entirely justifable, yet carry
an unfayorable implication as to the finan-
Cial condition of the companies issuing
them-it having been the usage with we'll
TODD companies TO provide for such require
mentS out of surplus earnings. The new
feat of financing applied to the Richmond
Terminal system, to save it from its over
whelming Sl0,000000 of floating debt is an
other discOuraging symptom of the times;
for following closely upon the heels of q
like revamping operation in Union Pacific,
1t indicates great deal Of either unprofta-
Bile railroading or bad management, and
will probably be found in the case of both
companies to be only postponement of
their troubles.
In view of the various factors above re-
ferred to. coming as they DO upon market
which had been doomed up to an advance
averaging II points on the active stocks. it
is not surprising that there should be dis
position to halt and allow these influences
TO have the effect to which their weight en-
titles them. No doubt that effect would
have come ere this had it not been for the
extraordinary influences that have operated
in the opposite direction. A more legiti-
mate and positive "bull'' argument could
not exist than the unprecedented magnitude
OF our crops, the fair prices they are deS-
tined to realize, the overwhelming railroad
traffic which they must create, and the
general national prosperity they must pro-
duce. The striking change in the course of
our foreign commerce, due to this cause, is
a very important factor in favor of the mar
ket, and will be felt later on. Our imports
for tember-owing to the large supplies
imported in that month of 1890 in anticipa-
ton of the new tariff-show decrease of
sl4,400.000 compared with last year, while
in consequence of the shipments from the
new crops the exports show an increase of
sI4,000,000 This is the beginning of
course of the foreign exchanges which is
destined to continue to bring gold to New
York and create an ease in money which
can hardly fail to produce favorable results
in stock exchange values later on. For the
moment, however, the attitude of waiting
BELTS the market, and spectators must be
satisfied with the profits that come from
daily quick turns. HENRY CLEws.
COME FOR G000