Telegram-herald., 1891-08-24
HENRY cLEW'S LETTER.
Improvement In the Stock Market still
Continues

Souuuues.
New York, August %, 1so1.-The
spirit OF Improvement in the stock
market that set in about two weeks
ago is still maintained, though at the
moment there are some symptoms OF
abatement. n variety OF circumstan-
ces have contributed TO this change
of tone To begin with, the unfavor-
abe aspects oa the situation had been
consider ably exaggerated in the esti-
mate of operators whilst the favorable
ones had been held in allegiance or their
influence exhausted; and the market
was thus pre-exposed TO sympathize
with new and hopeful influences.
At this juncture cams the intelli-
gence OF even a larger crop of wheat
than the previous large estimates had
indicated. and the prospects OF the
corn crop also have exhibited steady
improvement. The iron trade has
showed "A 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.s . The boom in wheat
and rye consequent upon the Russian
ukase prohibiting the export of the
latter grain, while inferentially 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 informa-
tion from Great Britain and the Con-
tinent has been to dispel the illusions
tion OF transatlantic finances. At
| London, there Is a distinct improve
mcnt OF feeling; AMI although busi-
ress is quiet. conservative and unre-
munerative throughout England, yet
| more ne e..ns 20 prevail
there. Even ray OF hope begins 70
dawn upon Argentine finance and the
much deprecated securities of that
| country, have within the past week
| shown notable recovery. There can
be no doubt that the favorable opin-
| ons and rs uroo."f -ccsntlv formally
expressed by the Governor OF the Bank
| of ENGLAND. The lateness OF the au-
tumn,l outflow of money from this
center 20 the West has also had an
assuring effect, the mora SO as il puts
back that movement so much nearer
/
compensation for the drain in imports
of specie. A week ago we had sur
plus reserve Of S17.6OO. 900. while at
the same time OF 1890 there was n de-
fIcicncy of S655.OOO and in 1889 sur
| plus OF only 1852. 900; which would
! seem to suggest that our current bus
mess with the interior Is being con-
| ducsed so rs to avoid any undue
commitments with that section. The
effect of this easier condition Is ap-
parent In the increase OF money Offered
on time loans for periods within SIX
months.
Putting together these several fac
tors. II cannot he denied that they
amount to N substantial improve
mcnt I'm the situation; and coming,
as tlsy hav-., In large measure un-
axpc-tedly. IL il nos surprising that
they have changed the temper ~ the
market and stimulated speculation
even to the extent of bringing out an
outside dem both speculative and
for investments But. on the other
stde. ~ SHOULD nor he ignored that
| undoubtedly the occasion has been
scizad nv parties long and heavily
loadod with unSaiable stocks for fos-
l ftTIE2 SftfibltiOH fui 'f'dtth& Ufl
opportunity TO unload. Prudent op-
orators VIII not overlook the fact
that thsris IL a very important ele.
ment of weakness IN the market In
the form ~ the securities of badly
financed corporations and Of railroads
which hgv = 00~'~ embarrassed
| through eaaerness 70 cover territory
which for vea-s ~ come cannot yield
n pavinr return uron the construc
tion OUTLAWS. For this and other re as
On, am pursuadsni that 10 would he
unwise ~ assume that the present
.sboon.' y lFkrlv 70 develop into =
continuous considerable further nd
vance in pricsa II would he ONLY
common prudence IN let the market
stand on further trial before trust
,ag It eonfidcrtiv. and especially n,
I ..nson ~ giving ~ no support but
selling ont on our boorn
HENRY CLEwA