The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1892-09-08
Several Causes Combine to Give the
Stock Market a Reaotionary
Character.
The Position of Railroad Finance
1s Stronger Than Ever
Before.
Pre- poet of Traffic Encouraging to the
Holding Of Investments-Silver Is
Sttlt y Factor.

%Nr" eshN ~ l~t~~"
circular issued by the banking house o
Henry Clews d Co.. II, Is and Is Broat
street, and IS Wall street, says: Following
the beneficial effect Of such influences ii
the legal decision against the Texas rail
road commission. the decision of Chancellor
McGil against the Reading ompany ane
the cessation of the, Buffalo strike. the
course of tho stock market during the past
week has been reactionaty; and that ten
doncy has been encouraged by the continued
rapid reduction of the bank reserves, by the
spread OF cholera in foreign ports closely
connected with the United States and by
the withdrawal of the Great Northern rail
road from the Transoontinsnta association.
One factor appears patent with the recent
test of values. namely that. as a rule,
stocks are in the hands of a fairly strong
class of holders. Capitalists associated
with great railroad interests have. In one
way or another, become the owners of very
large mounts of shares, and although they
may be in some cases unwilling holders, yet
the fact is not to be ignored that they are
able to support their transient Investments
until affairs take a turn more favorable to
marketing them. To this extent, the sitna-
1loA 10 VEAy Ahoih SA0 "A'Sn
Outsiders" are the chief holders.
This factor il backed by another of SUBJ
stantisl importance. The position Of rail-
road finance is to-day a stronger one than
has ever been realized before. Composition
ia under more effective control than tor
many years past; management 10 no longer
subject to the discreditable speculative
manipulation that once we're rampant in
ovan our hast rOaia. oCODOyuy and 6hOr0uUh-
ness have become a matter OF emulation
among officials; and there il less than for
many years past of the dangerous policy of
constructing extensions and branches long
in advance Of any possible remuneration
for the outlay. Under these circumstances,
railroad capitalists have acquired conf
dencs in the enterprises to which they have
made advances, and are no longer mere
manufacturers of stocks and bonds to be
palmed of on the public as quickly and
completely as possible. but themselves
bona ide investors.
The prospects Of traffic are also encorr-
aging to holding. Adding to the crops of
this year the large SURPRISES brought over
from 1891, the quantity Of agricultural pro-
ducts to be brought to the seaboard may be
expected to prove unusually large. That
the general trade of the country is active
the returns of the bank clearing houses
throughout the country clearly indicate.
tho transactions at the south and on the
Pacific coast even showing now an increase
over last year.
Another encouragement. and its full force
has not yet been realized, comes from the
evidence OF recent events that our great
transportation interests may depend upon
the protection OF the law az against the
doctr ines of 'gangsrism" on the one hand
and the violence of organized labor on the
other. Instead Of a reign of lawless hostil-
ity to incorporated enterprise in almost
A~ar- fory~ rvb1ah had x,n1o Nr,Str1 k> ~.
last degree timid and distrustful, We have
the promise of an assertion Of the force of
law which 10 calculated to infuse new life
into the industries of the nation.
The wholesome influence of the foregoing
factors ia, at the moment prevented from
having its natural effect upon the value of
securities by certain external considera-
tons. chiefly monetary. The la ge exE orts
OF gold have drawn down the reserves of
the associated banks; and the shipments of
currency to the interior for moving the
crops will reduce the stock of lawful money
in the banks to a still lower point. We
have been told from Chicago that that city
has become the money center and the cash
depository for the western country, and
that conse quently New York need no longer
tronbie itself about its responsibility for
supplying the demand for cash incident to
the great fall money movement. Judging
from the ezperit nee Of the past month, New
York is likely to have to contribute as much
as Chicago.
The silver question remains a factor of
more or less disturbance and one that ia
becoming more imminently urgent for set
len.ent 1t must very soon be decided
once for all what shall be the permanent
status of that metal in the Uaited States.
Ihe monetary conference. whose sittings
are to commence within about a month,
will, by it's decisions. precipitate and COM
pei an early choice of final action by this
country. If it should turn out that a suf-
ticient number of influential Governments
VIII JON the United States in detei mining
the future valuation of silver and in reuov-
ing all legal restraints upon its coinage and
its legal tender force, then the question
will be settled for us on the basis Of free
coinage of both the metals.
l advise only buying on the pronounced
breaks during the coming week and only
for Temporary holding, "a the present tenn
per OF the market points downwards.
AAS} r.