The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1892-08-22
FINANCIAL REVIEW.
Henry clsws's Weekly Letter on
the Money Situation.
The MARKETS.
The Refuse to Yield Even Under the
stroug Pressure of charlottesville
Reason is Based on the Confidence
in the Future Resources of the
Country aud its Railroads.


Special Correspondence to The Iatelligenoer
NEw YoRK, August 20-The stock
market exhibits an unusual degree Of
resisting power. Silver again touched
the lowest price on record; serious
strikes are in progress on the trunk
lines at Buffalo and elsewhere; gold ex.
ports continue inspite of all predictions
to the contrary, and Europe refuses to
stop sending back her American securi.
ties. This is list of calamities which,
in ordinary times, would precipitate
sharp decline in the whole market;
while, as matter OF fact, prices have
refused to yield to such influences with
remarkable stubbornness. valuesi it
10 true, are lower than o few months
ago, but tho decline has been gradual
and, judging by ordinary experience.
not at all in proportion to ctrcuul-
stances. Tho question is often asked,
"why does not the market yieldp A
good many operators have been con-
WINGED that ii should decline, and con-
sequently sold stocks. Instead OF weak
ening the market the bears have posi-
bly, strengthened it by creating new
and, for the time being, probably the
only important buying interest.
But tho real reason for this resistance
to lower prices is deeper seated than
that based on any short interest. II is
based on the confidence OF the big hold
ers of stocks in the future resources Of
the country and lite railroads. Their
holdings have beengreatly, andperhaps
unwiilingly, augmented by European
sales during the last ak months; still
there is every indication that they are
determined to hold them for better
prices. This being the case it makes
no difference at the moment wether
speculation is active or dull, whether
the public will buy stocks or not. 1.-THE
largeownors OF securities are determined
to hold for better fgures-and their
ability to do so is undoubtedly greater
than usual-it is evident that no large
amount OF stocks will change hands at
lower prices. The next question il,
what do they build this confidence
upon" when the silver crisis, gold ex-
ports, diminishing merchandise exports
and increasing imports, strikes, low
prices for wheat, cotton and other pro-
ducts, decreased gross earnings, and
other facts are all presented as favoring
further drop in stocksP The truth is,
that not only have these matters all
been in o measure discounted, but they
arc all temporary in character. Big
capitalists see more enduring evidences
than these on which to base their plans;
and chief OF these are the rapid devel-
opment and widespread prosperity Of
the whole country. Here and there
are complaints Of overproduc-
ton, excessive competition, low
prices, etc.; but beyond that is the
steady increase in the volume Of trade
and the encouraging decrease in BUSH
ness failures compared with last year.
Clearinga are steadily heavier than
year ago. Railroad earnings do not
show such heavy gains as in 1891, only
because we are comparing with an exc
traordinary year; and net results, be it
remembered, are satisfactory. Another
reason for confidence in railroad SCI
curities is the gradual tendency to elimi-
nate competition by means OF CONSOLE
dations. This tendency is working gu.
results beneficial to stockholders, not
only by greater economies, but by the
avoidance OF the reckless rate wars of
the past decade. Again railroad build
ing has been at a comparative stand
still for several years past, some states
showing no new mileage whatever OF
consequence, and others only very
moderate extensions. For the last five
years the growth OF railroads has not
been at nil in proportion TO the growth
OF population. Al some future time we
may enter a new era OF speculative rail-
road building; but there are no symp.
toms OF such at present, and this fact
alone, that population has about grown
up to a point where railroad facilities
are not in excess, is another and one Of
the strongest reasons for confidence in
the future of good railroad investments.
As already said, it is factors such as
these which served to resist the unfa-
vorable developments OF the last few
weeks. These developments have
probably been about discounted for
the present, and, in the absence Of
further surprises, look for improve
ment later on. The silver situation
takes no one by surprise. The danger
has been long foreseen and well guard
ed against. Before long we may expect
a wall OF distress from the silver pro.
ductng regions, for at present prices
there can be little If any profit i'll the
mining Of the product. This OF itself is
crumb Of comfort, and there is reason
to hope for some good from tho discus
siors Of tho international monetary
conference, as the distress in India is
likely to force Great Britain into some
sort OF concession at no distant date.
ARNRY CT Rws.