The Helena independent., 1892-05-25
THE FINANCIAL REVIEW.
Attacks Of the Boar Element on
Exposed Specialties, With
Partial Success.
Tho Present Situation as Compared
With That Of Ono Year
Ago.
Remarkable Recovery Within the Twelve
Months Tho Ususl Result of
Vigorous Hear Csmpaign.

Remarkable Recovery Within the Twelve
| Months = The Usual Result of
! Vigorous Hear Campaign.
New York, May 24.--[Spsciai.] Tho
last circular issued by the banking house
OF Henry Clsws n Co.. II, ID and III BSoad
street, and as Wall strsst says: During
the past week business q ths stosk sx-
change has still been largely confined TO the
dealings of professional operators. Ths
| "bssr" element has bssn out In fofos. lsd
by strong and skillful commanders. Their
attacks have bean mainly directed TO ex-
posed specialtiss, through battering which
they have hoped to reach the general list
they havs conducted their operations with
skill and vigor and their auccsss has per-
haps bean proportionod to their effort. But
the confidence Of holders Of dividend prop
critics. whsther on this market OF In Lon
don, remains virtually mistaken. Ths
stocks most Rssailsd have been Onion
Pacific and Northern Pacific; the former
after having been advanced through pur-
chases connected with tho election, being
naturally weak and unsupported, while the
/ A~ssSA Wa SASsAMSVOly VIVIAN VA hCVOuut u
the falling of III earn ings and the passing
OF dividend on Thursday. The failure OF
the Richmond Terminal reorganization
plan has also been an adverse element; ~
also some decrease in the current earnings
OF railroads. owing to tbs bad condition OF
western wagon roads having interrupted
the forwarding Of produce.
Beyond thsse passing weaknesses in ths
situation, the ''bsars" have theory that
prices are too high d compared with year
a 10; and on the strength Of that, thsir aim
is to break their way into the general list
through forcing q passage al these weak
and feebly defended spots. Bnt ID that
theory tenable? IL tho situation of to-day
at all comparable to that Of year ago2
Within twelve months, there has been q
vast recovery from the worldwide effects
Of the Barring shook, and the improvement
10 about 90 manifest in the European mar
ksts ~ On this side of the Atlsntic. This
country is now thriving on the benefits Of
unprecedented crops, which q year ago
were but dimly anticipated and not real
lied. At this date Of 1891. all the money
markets Of Europe were in state Of high
tension, and apprehension was felt on
every hand; the Bank of England rate of
discount was five per cent; gold shipments
from this port were of unprecedented VOL
ume. the May export amounting TO $685.
10000; the reserves Of the New York banks
were showing . surplus Of only three and
one-half millions and call money was
bringing five per cent; there was little de-
mand for Investment securities and specu-
lation was absolutely dormant; everywhere
confidence was at low ebb and distrust
arrested every branch Of enterprise. In
has Ern ~:n fE.,:.
the lowest ebb Of depression in one Of those
periods Of reaction that come upon the
world within every ten years, and stag
nancy. contraction and Liquidation per-
vadsa the two commercial continents.
Where is the sense of comparing the con-
The recovery within the twelve months
in nterval has been remarkable. Formerly.
tho rscupe:a alton following these general
great reactions was gradual and slow.
Under the changed conditions Of modern
business, it has become surprisingly rapid.
International commercial and fnanoial re-
lations have become adjusted to the light
ming methods of communication; situa-
tion therefore is moro quickly ascertained
and consequently more readily and easily
dealt with. In short, the world has become
one vast counting room. in which general
disorganization can be straightened out in
as many weeks or months As it formerly re-
quired months or years. The Significance
Of this change to the present situation ia
that the world has already gained point
OF recovery from tho great breakdown
initiated BY the Barings. suspension which.
under former conditions, would not have
been reached until years later. We fail to
keep pace in our judgments with the mod
ern quicker pace of events, and therefore
the degree Of recovery already attained
from the breakup of 1890-91 ia very imper-
fectly appreciated. This tardinesH of com
prehensioa has not, however, prevented the
facts from finding expression in market
valaes; but because some do not uNdsrsta nd
the causes of the improvement. they con-
clude that the rise in values is premature.
may be acting upon false theory of the
situation. It 10 not to be denied that they
have lately had the upper hand; and their
success must be respected. A vigorous
"bear" campaign. however. usually sul-
inmates in an oyersoid market, and II the
upward reaction follows. The present dan
ger of large short sales and the hope of
holders lie in the possibility Of just such an
over doing. Northern Pacific preferred has
fallen heavily within the last week. which
decline should be considered ample for any
changes that have occurred in lis intrinsic
position; and the quick advance shat fol-
lowed the passing of it's dividend ia some
evidence that the "bears'' thought it pru-
dent to call halt in their attack The cur
EenS tofnls Ior BORROWING Wlue range OF
stocks indicate an unusually large ''sho, I"
interest outstanding. From present symp-
toms. therefore. 1t is not impossible that
the "bears'' may soon find it wise to mod
erate their attacks. When that stage has
been reached. tue other side will have a
chance of showing what su rprisss it has in
reserve; and We xdvise mod deration III buy,
ing until the next drift in the tide plainly
shows itself. Daily in and out operations
for the coming week will prove the safest
and most profitable.
lnfsnts' slips from IS cents and up at utcher
l. Bradley's 105 Broadway.
Information Wanted.